JOHNS CREEK, Ga., Jan. 04, 2018 (GLOBE NEWSWIRE) -- Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today announced that it has entered into an agreement to acquire the Money Transfer Service Scheme (MTSS) Business of Transcorp International Limited (BSE:TRANSCOR.BO), for approximately $7.4 million, through one of its Indian subsidiaries. Transcorp International Inward Remittance Exchange encompasses 7,500 Distribution Outlets, 40 Branches, processing approximately 1.7 Million Transactions Per Annum.
The agreement while approved by the Transcorp International Board, is subject to its shareholders and other regulatory/commercial approvals. The customary process for such approvals can take a timeline of 45 to 60 days.
The acquisition once approved, is expected to be accretive to Ebix earnings immediately. The Company funded the transaction using its internal cash reserves. Ebix did not use any investment bankers for the transaction.
With a market share of almost 10% percent of Western Union's inward remittance flows in India, Transcorp International was one of the Top 5 largest international remittance (MTSS) players in India. This is Ebix’s fourth remittance related acquisition, following the announcement of the acquisition of YouFirst Money Express Private Limited and the asset purchases of Paul Merchants Limited and Wall Street Finance Limited. Ebix intends to consolidate all these acquisitions into its EbixCash Financial Exchange operations bringing significant synergies and reducing redundancies to the combined operation.
The acquisition of the MTSS Business, which controls the 5th largest share of the market, would further strengthen Ebix’s emerging leadership position in the Financial Exchange markets in India. The addition of Transcorp International MTSS assets following its acquisition of leading travel exchange Via.com, will increase the EbixCash Financial Exchange expanse to 231,500 physical distribution outlets, with an Omni-channel online digital platform that encompasses leadership in money remittance (domestic & international), travel, pre-paid & gift cards, utility payments, etc. In addition, Ebix’s recent joint venture initiative with Bombay Stock Exchange positions it strongly in India’s insurance sector.
The addition of this international capability significantly expands upon Ebix’s overall participation in India’s remittance channels, and will allow Ebix’s financial exchange to remit money sent from abroad through multiple partners.
EbixCash is already the largest domestic remittance exchange in India with domestic remittance volume of approximately $100 million per month. It is also a recognized leader in prepaid cards, domestic remittances and bill payments, processing approximately 600,000 transactions per day and approximately $2 Billion in annual payment volume. EbixCash through its travel portal Via.com is also one of South East Asia’s leading travel exchanges with over 110,000 distribution outlets and 8,000 corporate clients, processing over 24.5 million transactions every year.
Transcorp International Limited Chairman and Managing Director Ashok Aggarwal said, “EbixCash has established a dominant customer friendly international remittance business in India with a reach that is many times larger than any other MTSS player in the marketplace. We genuinely believe that EbixCash is a logical home for Transcorp MTSS assets, as it complements EbixCash’s financial exchange portfolio perfectly, opening up tremendous cross-selling opportunities on both sides. We are excited about the possibilities this offers for our partners and customers both.”
Ebix Chairman, President and CEO Robin Raina, “Following up on other MTSS assets acquisitions in the last few months, the acquisition of Transcorp International MTSS assets is a logical step forward in our efforts to expand our presence in the Financial Exchange markets in India. It will help establish EbixCash as an undisputed market leader, by leaps and bounds, in the inward international remittance exchange business. Also, the consolidation of Transcorp MTSS assets into our existing Financial Exchange infrastructure will further enhance our operating margins.”
A leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, Ebix, Inc. provides end-to-end on-Demand solutions ranging from infrastructure exchanges, front end & back end enterprise systems, outsourced administrative & custom software development solutions, and risk compliance solutions for various entities involved in these industries.
With 40+ offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the US and the UK, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums annually on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of domain specific business and technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company’s website at www.ebix.com
Transcorp International Limited (BSE:TRANSCOR.BO), is a diversified conglomerate having prominent interests in International Money Transfer, Foreign Exchange, Investments, Insurance, and Tours & Travels. Under the aegis of specific RBI Licenses, Transcorp offers International Money Transfer and Forex Services from its widespread network consisting of 40 offices and approximately 7,500 Franchisee locations across India. For more information, visit the Company’s website at http://www.transcorpint.com/Money-transfer.htm
An Ebix Group initiative, EbixCash is emerging as one of the leading Financial Exchanges in India. With a ‘Phygital” strategy that combines 231,500 physical distribution outlets to an Omni-channel online digital platform, EbixCash has established an enterprise financial exchange portfolio that encompasses leadership in money remittance (domestic & international), travel, pre-paid & gift cards, utility payments etc. Ebix’s recent joint venture initiative with Bombay Stock Exchange positions it strongly in India’s insurance sector. EbixCash’s portfolio of products can be accessed digitally anywhere as also across its distribution outlets spread over 5,500+ cities and towns. For further details, visit www.ebixcash.com
As used herein, the terms “Ebix,” “the Company,” “we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.The information contained in this Press Release contains forward-looking statements and information within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market, and management's plans and objectives. In addition, certain statements included in this and our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "seeks," "plan," "project," "continue," "predict," "will," "should," and other words or expressions of similar meaning are intended by the Company to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are found at various places throughout this report and in the documents incorporated herein by reference. These statements are based on our current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.
Our actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that may cause such a difference, include, but are not limited to those discussed in our Annual Report on Form 10-K and subsequent reports filed with the SEC, as well as: the risk of an unfavorable outcome of the pending governmental investigations or shareholder class action lawsuits, reputational harm caused by such investigations and lawsuits, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Company's ability to gain or maintain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes in or failure to comply with laws and regulations, including accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in Australia, UK and India wherein we have significant operations); equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing; and international conflict, including terrorist acts.
Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors, or to publicly announce the results of, or changes to any of the forward-looking statements contained herein to reflect future events, developments, changed circumstances, or for any other reason.
Readers should carefully review the disclosures and the risk factors described in the documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto. You may obtain our SEC filings at our website, www.ebix.com under the "Investor Information" section, or over the Internet at the SEC's web site, www.sec.gov.
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