Ebix Acquires Australian Processing Solution Company, Fintechnix
Ebix (News - Alert), Inc. announced that it has signed a deal to acquire a Web-based processing solution called Fintechnix. Ebix said the new company, Fintechnix, would work under its Australian operation and expects the deal to be immediately accretive to Ebix earnings per share.
Ebix, who has a recurring revenue base of 80 percent, is a leading international supplier of software and e-commerce solutions to the insurance industry. The company provides various products and services including; carrier and agency systems, and exchanges to custom software involved in both the insurance and financial industries. Ebix said its goal is to “be the leading backend powerhouse of insurance transactions in the world,” and plans to continue expanding its services.
Fintechnix has been providing services to Australian residents since 1992 and has been able to deliver reliable and seamless end-to-end solutions. By purchasing Fintechnix, Ebix can expand its presence in Australia to grow internationally in the life insurance and wealth management sectors.
Leon d’ Apice, Ebix Australia managing director, said with the addition of Fintechnix, Ebix could offer more services to more people. “The Life and Wealth Management sectors are constantly growing markets. Fintechnix OneOffice coupled with our data exchange and On-Demand e-commerce expertise will allow Ebix to introduce innovative solutions to improve operational efficiencies while introducing new service levels to this excited market segment.”
Aprice continued saying, “As a global supplier of insurance solutions, we look to take advantage of technologies introduced into overseas markets that will benefit Australian Life Insurance companies. We believe that our domain specific expertise in the CRM and data exchange areas coupled with Fintechnix’s end-to-end solutions for the life insurance and wealth management industry, will allow us to offer niche straight through processing solutions in the Australian markets.”
Ebix and Fintechnix did not release any specific deals on the cost of the acquisition or if Fintechnix employees will receive any benefits as a result of the deal.
However, Ebix did release specific deals about another purchase the company made this past week. Just two days ago, Ebix announced that it would buy PlanetSoft for $40 million – $35 million in cash and $5 million worth of shares. Ebix also said it plans to give PlanetSoft shareholders additional cash payments based on current revenue levels over the next two years. The agreement with PlanetSoft is expected to close next week.
Edited by Carrie Schmelkin