Ebix Commences Due Diligence in Yatra Online with the Goal of Signing a Formal Agreement to Acquire Yatra by 15th May 2019
JOHNS CREEK, GA – March 19, 2019 – Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries today announced that it has officially engaged with Yatra Online, Inc. to commence its due diligence immediately, with the goal of working towards signing the agreement to acquire Yatra Online latest by 15th May 2019. Ebix intends to merge Yatra Online in its Indian EbixCash subsidiary set up. Ebix’s offer is subject to due diligence and customary regulatory and other closing conditions.
EbixCash also announced that encouraged by the sales momentum the Company has generated, along with its proven acquisition strategy towards building India’s largest end-to-end Financial Exchange, EbixCash Operation on a standalone basis is targeting quarterly Annualized Revenues of $600 million by Q4 of 2019. The Company also said that its EbixCash operation is targeting Quarterly Annualized operating income of $180 million or more by Q4 of 2019.
Making the announcement, EbixCash provided an update on the performance of its acquisition strategy and the performance of each of the related Divisions, while comparing Q4 2018 Annualized numbers for each Division to the acquired revenue for each Division, on a constant currency basis –
The Company also reinforced its intent to acquire Yatra expeditiously, once the due diligence is satisfactorily completed.
Naveen Kundu, Managing Director of EbixCash’s Mercury Luxury & Corporate Division (Formerly Founder of Leisure Corp) said, “We are excited by the momentum we have generated in the travel markets both in India and abroad. January was a record month for the travel Division. Mercury has won most of the deals it has been involved in lately, with a near 100% hit ratio and has attained a book size so far of about $ 15 million in 2019 already, by adding 18 new large corporate clients. Buoyed by the growth, we are targeting that our events business (MICE) should grow almost 100% in 2019, as compared to the period before Ebix acquired the Leisure Corp travel events business.”
TC GuruPrasad, Managing Director of EbixCash WorldMoney Division (Formerly Founding CEO of Centrum Direct Ltd.) said, “In the short period of less than one year since Centrum Direct was acquired by Ebix, we have been able to become a dominating player in many areas in the financial markets, with an estimated GMV of $12.5 billion annually. Today, we have forex counters in 29 out of the 32 international airports in India. Besides, Ebix’s international expanse has allowed us to expand our business abroad and win large deals abroad. EbixCash is not only continually growing organically and inorganically but is also contributing to India in terms of job creation – we intend to use India as a central hub for all our EbixCash international operations.”
EbixCash’s parent Company Ebix has the honor of being featured 5 times in Fortune’s list of 100 fastest growing companies in the last decade. Ebix also has a track record of 18,500% shareholder growth since December 2000 besides having delivered 20 years of sequential growth in terms of Revenues, EPS and operating income.
With 50+ offices across 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. In the Insurance sector, Ebix’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world.
With a "Phygital” strategy that combines 320,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets. EbixCash’s Forex operations have emerged as a leader in India’s airport Foreign Exchange business with operations in 32 international airports including Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting over $4.8 billion in gross transaction value per year. EbixCash’s inward remittance business in India conducts approx. $5 billion gross annual remittance business, confirming its undisputed leadership position in India. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia’s leading travel exchanges with over 2,200+ employees, 212,450+ agent network, 25 branches and over 9,800 corporate clients; processing an estimated $2.5 billion in gross merchandise value per year.
Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific 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
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.
|Naveen Kundu or TC Guruprasad or Milan Ganatra or Darren Joseph or Gautam Sharma
|David Collins or Chris Eddy
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