JOHNS CREEK, Ga., Feb. 11, 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 EbixCash World Money Limited subsidiary in India has completed the acquisition of 74.84% controlling stake in India based Weizmann Forex Limited (BSE: WEIZFOREX). EbixCash has also made a 90-day time bound public offer to acquire the remaining 25.16% publicly-held Weizmann Forex shares for INR 528 ($7.54) per share, in adherence to SEBI rules, or approximately $21.12 million to public shareholders.
The purchase valued 100% of Weizmann Forex at $65.94 million, net of $17.51 million of cash remaining in the business. Ebix funded the entire transaction in cash, using its existing bank line and internal cash reserves. Ebix believes the Weizmann business can continue to achieve annual growth of 15% or more, with operating margins of 40% or more, once fully integrated. Ebix expects the Weizmann acquisition, once fully integrated within approximately six months, will contribute at least 15 cents per share in additional diluted EPS over a 12-month period.
Weizmann will be tightly integrated into the EbixCash Financial Exchange offering in India and abroad. The Weizmann network encompasses 700+ districts in India, 186 branches, 21 airport counters at 7 international airports, and 61,000+ customer touch points across the country. It services leading multinationals, large corporate entities, public sector undertakings, banks, large tour operators and retail clients.
EbixCash Leadership in Diverse sectors in India
The acquisition of Weizmann further establishes the fast growing EbixCash network aggregation of services as India's Largest End-to-end Financial Exchange, positioning it as the Airport for Financial, insurance and travel transactions.
- Forex and outward remittance – EbixCash now has a undisputed dominant leadership position in the outward remittance and foreign exchange markets in India, with Gross merchandise value (GMV) of $4.8 billion+ annually.
- Inward Remittance – EbixCash now has an estimated 90% share of Western Union inward remittance business in India with GMV of approx. $5 billion annually, while having an undisputed leadership position in the Indian markets.
- Travel (Airline, Hotels, Trains, Buses, Cabs, Events business) – EbixCash's travel portfolio of two travels brands Via & Mercury, today has the second largest position in India's B2B and corporate markets in terms of Net Revenues. With an estimated GMV of INR 8,100 crores or $ 1.16 Billion, EbixCash today is amongst the top few named travel players in terms of GMV with 2,200+ employees, 212,450+ agent network, 25 branches and 9800+ corporate clients.
- Lending and Wealth Management – EbixCash Financial Technology (EFT) division today is one of the leaders in both these sectors, with an estimated 50% of its revenue base coming from Europe, Asia and the Middle East.
- Domestic Remittances – EbixCash is the largest domestic remittance exchange in India with domestic remittance volume of approximately $1.2 billion annually.
- Gift Cards – EbixCash is already recognized as a leader in the Gift card space with brand gift cards across all categories with 100+ Brand copartners.
- Utilities Payment – EbixCash is a leading payment exchange enabling consumer payments for …
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