A consortium led by India’s Eraaya Lifespaces has successfully acquired US-based Ebix Inc., including all its worldwide subsidiaries, in a deal worth $US145 million ($216 million). The acquisition follows Ebix Inc.’s filing for protection under Chapter 11 of the US Bankruptcy Code last December.
The consortium, which includes Vikras Lifecare and Vitasta Software India alongside Eraaya Lifespaces, is set to complete the transaction by August 31. The law firm Sidley Austin acted as counsel for Ebix during the proceedings.
Ebix Australia Managing Director Leon d’Apice has welcomed the acquisition, emphasising that the move signifies a positive step forward for the company’s operations Down Under.
“The Australian operation remains profitable and strong,” Mr. d’Apice told insuranceNEWS.com.au,
“We have a very successful business model here. Management remains the same, and there will be no change to the local business, which has continued as usual throughout this process.”
Acquisition Details and Process
Ebix Inc. initially filed for Chapter 11 protection on December 17, aiming to restructure its debts and operations. Earlier this year, the company sold its North American life and annuity assets to Zinnia Corporate Holdings in a deal that closed on April 1.
The Eraaya-led consortium’s bid for the remaining Ebix assets was accepted at the end of June following an auction overseen by the US Bankruptcy Court for the Northern District of Texas. The acquisition terms received support from Ebix’s senior management team, led by the CEO, signalling confidence in the consortium’s ability to steer the company toward renewed growth.
On August 2, the Texas bankruptcy court confirmed the finalized acquisition plan. Following the court’s approval, Eraaya Lifespaces announced the successful agreement in a release to India’s BSE stock exchange.
“Eraaya Lifespaces Limited is thrilled to announce that the agreement to acquire Ebix Inc. has successfully gone through the process of final approval at the bankruptcy courts,” the company stated, highlighting the strategic significance of the acquisition.
Last week, Delhi-based Eraaya completed a qualified institutional placement to fund the final payments for Ebix, which has an ascribed enterprise value of $US361 million ($538 million). The move underscores Eraaya’s commitment to expanding its portfolio beyond lifestyle and hospitality into sectors that promise “growth, diversification, and sustained relevance in an ever-evolving market.”
Impact on Ebix’s Global Operations
Ebix Inc. is renowned for providing software and e-commerce services to the insurance, financial, and healthcare industries. With over 50 offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the US, and the UK, the company has established a significant global footprint. Its principal US executive offices are located in Johns Creek, Georgia.
Despite the Chapter 11 filing, Ebix’s global subsidiaries were not initially included in the bankruptcy proceedings but are now part of the equity transaction with the Eraaya consortium. The acquisition aims to stabilize and strengthen Ebix’s operations worldwide, leveraging Eraaya’s resources and strategic direction.
Continued Strength in Australian Market
Ebix Australia, which celebrated three decades of operation last year, has maintained a strong focus on its core businesses throughout the restructuring process. Recognised as “one of the original insurtechs,” the company has been at the forefront of technology solutions for the insurance industry since its establishment. Its product suite includes Ebix Evolution, OneOffice, Sunrise Exchange, and WinBEAT, all of which continue to serve a robust client base.
Mr. d’Apice reaffirmed the company’s stability and ongoing commitment to innovation in the Australian market.
“Our focus has always been on delivering exceptional value and cutting-edge solutions to our clients,” he said. “This acquisition provides us with additional support and resources to continue our growth trajectory and enhance our service offerings.”
Future Outlook
The successful acquisition by the Eraaya-led consortium is expected to provide Ebix Inc. with the necessary support to emerge stronger from its financial restructuring. With the backing of new ownership committed to diversification and growth, Ebix is poised to reinforce its position as a leading provider of technology solutions across various industries globally.
The deal’s completion on August 31 will mark a new chapter for Ebix, as it leverages Eraaya’s strategic vision to navigate the competitive landscape and explore new opportunities for expansion and innovation.
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