JOHNS CREEK, GA – September 4, 2018 – 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 one of its Indian subsidiaries has signed the agreement to acquire Mumbai based Miles Software for an amount of approximately $19 million, with an additional contingent earn out of up to $8.5 million payable after 2 years.
Miles is India’s Leading wealth and asset management on-demand software provider to banks, asset managers and wealth management firms, besides having 300+ financial service customers across 18 different countries in Europe, Middle East and South-East Asia.
While being tightly integrated into Ebix’s on-demand software offerings globally, Miles Software will serve as Ebix’s Investment, Wealth and Asset Management Division with its products being interfaced across both EbixCash financial exchanges and EbixExchange insurance exchanges. All key Miles business executives have been retained by Ebix with the Miles Founder Milan Ganatra and his team being entrusted with leading Ebix’s global efforts in these niche competence areas. Milan will also become a key member of the EbixCash senior leadership team in India, to have an enhanced focus on the global fast-growing wealth and asset management industry.
In the financial year 2017, Miles had revenues of $8 million and EBITDA of approximately 8%. Ebix believes that the business can continue to grow at the rate of 20% plus annually with operating margins of 30% or more, once fully integrated. Ebix expects the acquisition to be immediately accretive to its earnings and forecasts 8 cents in increased Diluted EPS, once the acquisition is fully integrated over the next 6 months. Ebix funded the acquisition using its internal cash reserves and did not use any investment bankers for the transaction. Aarayaa Advisory Services served as the exclusive financial advisors to Miles Software.
"We are immensely pleased to have become a part of a Company with an extremely rich domain focus and a who’s who financial institution client base. Ebix today is the only on-demand Exchange in the world that aspires to bring true convergence between financial, insurance, asset management, lending and wealth management.” Milan Ganatra, Founder and CEO of Miles Software said. “With 7,500+ employees servicing clients in India, Ebix offers us expansion possibilities that are truly exciting. Ebix’s expanse across the world and more specifically in North America, Australia, UK and Brazil has the potential of opening up immense new opportunities for our products, as we interface them to Ebix CRM and other Exchange solutions in these markets.”
Milan added, “We strongly believe that there is great synergy and mutual shared DNA between Ebix and Miles’s focus on globalization, domain focus and the culture of innovation and excellence. I am confident that the Miles team has the talent and ability to take Ebix to even greater heights".
“Miles’s wealth management, asset management, collateral based lending management and custody businesses complement Ebix’s existing offerings to financial institutions, Banks, asset managers and wealth managers across the world. It also opens up cross selling opportunities for Ebix solutions to Miles’s customer base in 18 countries.” Ebix Chairman, President and CEO Robin Raina said. “The addition of Miles to our EbixCash portfolio not only makes our financial exchange offering even more comprehensive, but also provides us with a senior management team that is proven and highly respected in the industry. I look forward to working with Milan in helping him expand the Miles footprint to United States, Australia and Brazil, while utilizing our domain focused sales and relationship oriented folks in these markets.”
The addition of the Miles asset management, portfolio management, custodian services and collateral based lending management to the EbixCash portfolio further strengthens Ebix’s leadership in India’s Financial Exchange markets:
With 50+ offices across 5 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, the Company’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 administrative and risk compliance, across the world.
With a "Phygital” strategy that combines 260,000 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, Forex, travel, pre-paid & gift cards, utility payments, lending etc., in an emerging country like India. The Company’s Forex Exchange has an approximate 70% market share of India’s airport Foreign Exchange business encompassing 25 international airports like Delhi, Mumbai, Bangalore, Chennai and Kolkata International airports, while conducting over 1 million transactions per annum. EbixCash, through its travel portal Via.com, is also one of Southeast Asia’s leading travel exchanges with over 110,000 distribution outlets and 8,000 corporate clients processing over 24.5 million transactions every year. For further details, visit www.ebixcash.com
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
Incorporated in 1999, Miles is India and Mauritius’s Leading wealth and asset management on-demand software provider to banks, asset managers and wealth management firms, besides having 300+ financial service customers across 18 different countries in Europe, Middle East and South-East Asia. The Company is currently also working on developing a B2B Wealth Exchange between wealth managers, distributors and originators using blockchain technology. For more information, visit the Company’s website at www.milessoft.com
An Ebix Group initiative, EbixCash is emerging as one of the leading Financial Exchanges in India. With a ‘Phygital” strategy that combines 260,000 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.
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