The Qatar Financial Centre Authority (QFCA) announced that it has reached an agreement to sell Qatarlyst, an electronic trading exchange for the global insurance and reinsurance industry, to Ebix Singapore Pte Limited, a subsidiary of Ebix, Inc., an international supplier of On-Demand software and E-commerce services to the insurance industry.
The QFCA said it believes that “Qatarlyst’s divestment to Ebix, Inc. is the best option to leverage Qatarlyst’s capabilities, develop the business and secure wider market acceptance. Ebix will be rebranding the service as a part of its EbixExchange platform worldwide.
“Qatarlyst was established in November 2008 to provide the next generation web-based technology solution for brokers and insurance firms to negotiate, place and accept large commercial risks electronically,” the announcement explained. It has “made considerable progress in winning the insurance market’s acceptance with its value added web-based services and has emerged as a major innovator in the industry.”
The bulletin also noted that “Ebix’s expertise in the insurance industry coupled with its commitment to open architecture and standards is expected to provide an even higher level of quality of services to Qatarlyst’s customer base. It expands Qatarlyst’s international reach and also offers access to Ebix’s insurance focused staff of approximately 2,000 employees. Ebix’s commitment to the London market modernization program, its existing relationships with top brokers and insurance companies around the world and its existing exchange presence in London, allows it the ability to be the e-platform of choice to power paperless transactions for the commercial insurance and reinsurance industry. Both Qatarlyst and Ebix intend to work to ensure a seamless transition of the business.”
Khalid Al-Mughesib, the Deputy/Acting CEO of Qatarlyst, said: “We are delighted to announce the deal today with Ebix, Inc. With its leading market position, broad geographic reach and relevant experience, Ebix, Inc. is the ideal partner. This is a good outcome and on terms which reflect our investment over the last few years.”
Ebix, Inc’s Chairman, President and CEO Robin Raina commented: “This is a strategic acquisition for us as it places Ebix in a position to power the electronic trading platform for the insurance industry in the UK and Middle East, while providing services on a utilities basis.”
“Qatarlyst serves over 330 members and facilitates transactions between over 290 different entities drawn from many of the world’s largest and most successful blue chip insurance companies and markets in London, continental Europe and Bermuda such as Aon, Lloyd’s, Swiss Re, and Munich Re,” he added. “We are looking forward to working with all the key constituents in London, towards ensuring a market-wide use of this trading exchange through all means including the possibility of a broad based industry driven initiative like Placing Platform Limited.”
Qatar Financial Centre Authority CEO and Board Member Shashank Srivastava described the sale as a “positive outcome for all parties. The QFCA is pleased to have played such a significant role in the development of Qatarlyst to this stage. Qatarlyst has found a strong new home in which it can further develop and spread its pioneering technology and services, and so contribute to the growth of the worldwide reinsurance market. This is a market with which the QFCA will continue to be fully engaged as it seeks to develop a vibrant reinsurance market in Qatar, serving both the local and international markets.”
Ebix disclosed that it funded this transaction completely in cash using its existing cash reserves. No Ebix shares were issued and no investment bankers were involved in the transaction on the Ebix side. Ebix considers the size of the acquisition immaterial at present and thus did not disclose the financial details of the transaction.
Source: Qatar Financial Centre Authority
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