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Atlanta-based insurance software and e-commerce supplier Ebix said it has agreed to buy life insurance and annuity services provider PlanetSoft Inc. for $40 million.
Ebix said the acquisition is expected to be immediately accretive to earnings per share (EPS). The closing is expected to be completed within the next week, subject all regulatory and fiduciary approvals on both sides.
PlanetSoft has been in business 14 years offering data exchanges that streamline core life insurance operations in the areas of client acquisition, underwriting, and distribution management. The firm currently has 575 employees — 90 percent of them in India — and serves some of the top 20 life insurance companies in the United States and India including Swiss Re, MassMutual, Liberty Mutual, Manulife Financial, Sun Life Financial, Desjardins and New York Max Life, according to the announcement.
Ebix said it has acquired all of the outstanding capital stock of PlanetSoft for $35,000,000 in cash at closing, and $5,000,000 payable in the form of 297,265 shares of the common stock of Ebix issued at the time of closing. The deal will also involve earn-out cash payments to PlanetSoft shareholders based on specific revenue numbers achieved in the next 24 months.
Ebix said it is funding the purchase using a mix of internal cash reserves and the bank credit line available to Ebix at Libor plus 1.5 percent.
PlanetSoft’s flagship product for new business processing and underwriting is named “The Policy Processor.” Its Producer Support System streamlines the agent appointment process and The Claims Processor automates claims filings, review, and payouts through rules based paperless processing.
Ebix has offices across Brazil, Singapore, Australia, the U.S., New Zealand, India and Canada. It offers multiple exchanges across the world in the fields of life, annuity, health and property/ casualty insurance. According to Ebix, it platforms handle in excess of $100 billion in insurance premiums.