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NOIDA, India and JOHNS CREEK, Ga., Nov. 15, 2019 (GLOBE NEWSWIRE) -- 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 its Indian subsidiary has been declared as the successful bidder and issued a letter of intent by the committee of Banks and financial institutions, for the purchase of IT assets of Mumbai based Trimax IT Infrastructure and services Ltd. The purchase is on a 100% debt free basis. Once the closing is accomplished, all the Trimax assets (excluding the smart city technology assets) will become a part of EbixCash’s Bus Exchange and Financial Technologies business in India.
Ebix expects the Trimax asset purchase to deliver approximately $30 million in revenues in the year 2020 with operating income of approximately $10 million in the year. Trimax is India’s dominant leader in the area of Bus Exchanges handling $1.7 Billion of annual transactions, across 30% of India’s bus ticketing system network with 10+ large state-owned public transport corporations as clients. Trimax also is one of the leading players in the Financial Services hosting arena, while managing hosting functions for 25% of the public sector banks in India.
The Ebix offer accepted by the Committee of Creditors for Trimax, has an upfront cash offer of approximately $10 million for 100% common stock of the company, with the Banks holding 15% preferred shares in the the Trimax Division for a minimum period of 3 years, with Ebix having the right to purchase those 15% preferred shares at its discretion based on the prevailing market value of those shares.
Ebix expects the transaction to close over the next 45 days, which would involve approval of the recommended plan of the committee of Creditors by the National Company Law Tribunal (NCLT).
With 50+ offices across 6 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, Ebix’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 administration and risk compliance services, around the world.
With a "Phygital” strategy that combines 320,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets. EbixCash’s Forex operations have emerged as a leader in India’s airport Foreign Exchange business with operations in 32 international airports including Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting over $4.8 billion in gross transaction value per year. EbixCash’s inward remittance business in India conducts approx. $6.5 billion gross annual remittance business, confirming its undisputed leadership position in India. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia’s leading travel exchanges with over 2,200+ employees, 212,450+ agent network, 25 branches and over 9,800 corporate clients; processing an estimated $2.5 billion in gross merchandise value per year. For more information, visit the Company’s website at www.ebix.com
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