Acquisition Broadens Ebix’s Insurance Market Presence

Ebix Inc., an Atlanta based software developer and supplier of e-commerce software has announced that effective May 1, 2006, it completed the acquisition of substantially all the operating assets of Reston, Va. and Dallas-based Infinity Systems Consulting Inc.

The acquisition adds over 15 insurance companies to Ebix’s roster of customers, providing Ebix with a broader presence in the insurance company markets.

Ebix acquired the operating assets of Infinity in a deal that is a mix of an earn-out cash payment based on targets spread over two years and an upfront cash payment of approximately $2.9 million. No shares of Ebix’s capital stock were issued as a part of deal, thus resulting in no share dilution to Ebix’s existing shareholders.

Ebix intends to integrate this company’s operations into its existing company’s operations in the United States, while retaining all the employees of Infinity Systems Consulting. Ebix will create a new “Infinity Carrier Division” to provide highly specialized products and services to small to medium-sized property and casualty insurance companies in the United States.

Ebix also announced that it has retained Kathryn Steding Cay, Infinity founder and Christine M. Denham, Infinity CEO as senior vice presidents to oversee the operations of Ebix’s newly created Infinity Carrier Division. John L. Schmitt, Infinity v.p. software development has also been retained to oversee the system development group of the Infinity Carrier Division.

In July 2004 and February 2004, Ebix completed the acquisition of Melbourne-based Heart Consulting Group and Utah-based LifeLink Corp. Inc. respectively, adding hundreds of. brokers and approximately 35 life insurance companies as customers. Both these acquisitions were accretive to Ebix’s results, both for the financial years 2004 and 2005.

Source: Ebix Inc.

Topics Mergers & Acquisitions Trends Carriers Market