Ebix Acquires Pune Based Indus Software Technologies for $29M
The acquisition of Indus will increase the employee strength of Ebix in India by 900 to approximately 7,200 employees.
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ItzCash parent Ebix, an international supplier of on-demand software and ecommerce services to the insurance, financial, healthcare and e-learning industries, has acquired India based Indus Software Technologies Pvt. Ltd. (Indus), a global provider of enterprise lending software solutions to financial institutions, captive auto finance and telecom companies, for approximately $29 million including $5 million of contingent earn out.
Indus will be tightly integrated into Ebix’s Financial Exchange EbixCash offering in India and abroad, with key Indus business executives becoming an integral part of the combined EbixCash senior leadership. The acquisition of Indus will increase the employee strength of Ebix in India by 900 to approximately 7,200 employees.
In the financial year 2017, Indus had revenues of $22 million and EBITDA of approximately 17%. Ebix believes that the business can continue to grow at the rate of 12% to 15% 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 $0.19 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. KeyBanc Capital Markets Inc. served as the exclusive financial advisors to Indus Software and its principal owners Black Dragon Capital.
Ebix Chairman, President and CEO Robin Raina said, “Indus provides us now with the ability to interface a Person to Person (P2P) Lending exchange into the back-end systems of top lenders in the market place and move data seamlessly across front-end and back-end systems. This will also allow Indus clients to access the 260,000+ physical distribution expanse of EbixCash, along with our strong corporate and electronic network, and be a lending provider to our vast consumer network in India, through a future EbixCash P2P Exchange.” Robin added, “Indus also fits in well with our goals of expanding the EbixCash network globally, since it provides us with an international customer base across Europe, Middle East and South-East Asia.”
Founded in 1990, Indus offers a specialized suite of products and technology solutions for Banking & Finance, Telecom and Insurance Industries. With more than 150 enterprise lending implementations in 15 languages across 50 plus countries, Indus derives 56% of its revenues from India and the balance coming primarily from Europe, Middle East and South-East Asia.
With enterprise solutions that are designed for international markets, Indus today has an impressive base of global blue-chip customers and partners including Standard Chartered Bank, Volvo, BMW, Exide Life insurance, Idea, Airtel, Viva and Ooredo etc.
The addition of the Indus to the EbixCash portfolio further strengthens Ebix’s leadership in India’s Financial Exchange markets.
Indus solutions tend to form the backbone of Enterprise loan life cycle management for a Lender with modules that encompass retail and corporate origination, loan management and collections for areas as diverse as auto, mortgage, credit card, personal loans, education loans, consumer loans and Gold loans etc. The Company’s solution set includes functionalities like Commissions & Incentives, Workflow management, Mobility, Lead management, Collateral management, Dealer Funding etc. besides its end-to-end Lending suite.
In May 2017, Ebix acquired 80% stake in Mumbai-based fintech firm, ItzCash. Earlier this year, Ebix also bought Money Transfer Service Scheme (MTSS) business of Transcorp International. The acquisition has been made through one of its Indian subsidiaries, EbixCash, for around $7.4 million.
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