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 it has officially engaged with Yatra Online, Inc. to commence
its due diligence immediately, with the goal of working towards
signing the agreement to acquire Yatra Online latest by 15th May
2019. Ebix intends to merge Yatra Online in its Indian EbixCash
subsidiary set up. Ebix’s offer is subject to due diligence and
customary regulatory and other closing conditions.
EbixCash also announced that encouraged by the
sales momentum the Company has generated, along with its proven
acquisition strategy towards building India’s largest end-to-end
Financial Exchange, EbixCash Operation on a standalone basis is
targeting quarterly Annualized Revenues of $600 million by Q4 of
2019. The Company also said that its EbixCash operation is
targeting Quarterly Annualized operating income of $180 million or
more by Q4 of 2019.
Making the announcement, EbixCash provided an
update on the performance of its acquisition strategy and the
performance of each of the related Divisions, while comparing Q4
2018 Annualized numbers for each Division to the acquired revenue
for each Division, on a constant currency basis –
- Consolidated EbixCash
Operations - On a consolidated basis, the EbixCash
operation has grown 35% in terms of revenues and 677% in terms of
operating income, as compared to the acquired revenue. Also, the
Company’s sales efforts have led to all of the Company’s Divisions
generating intrinsic growth in terms of revenues and operating
income both.
- Forex, Retail card and
Money Remittance Division – The Q4 2018
Annualized Revenues for the consolidated Division on a constant
currency basis grew 19% intrinsically, while operating income grew
135%. The Company Forex and money remittance revenues grew by 33%
while the retail card revenues were down by 24%, mainly because of
the Company’s focus on higher margin services like remittance and
Forex. The Forex, retail card and remittance division on a
consolidated basis conducts gross merchandize value (GMV) of
approximately $12.5 billion a year.
- Travel Division –
Sales efforts by the Division led to Q4 2018 Annualized Revenues
for the consolidated Travel Division on a constant currency basis,
growing by 39%, while operating income grew 1,379%. The Company’s
India Travel Division revenues grew intrinsically by 23% while the
international travel revenues grew year-over-year by 110%. The
travel division on a consolidated basis conducts GMV of
approximately $2.5 billion a year.
- Financial Technologies
Division – The Q4 2018 Annualized Revenues for the
consolidated Financial Technologies Division on a constant currency
basis grew 15% intrinsically, while operating income grew 718%. The
Division presently is a leader in lending, asset management &
wealth management technology in India with 50% of its revenues
coming from Europe, Middle East, Africa and ASEAN countries.
- E-Learning
Division - The Q4 2018 Annualized Revenues for the
E-Learning Division on a constant currency basis grew 52%
intrinsically, while operating income grew 267%.
- New Startups – AHA
Cabs Division grew by 45% in terms of revenues while the remaining
two startup efforts are expected to contribute strongly to EbixCash
revenues by Q4 2019. EbixCash is targeting Annualized revenues of
approximately $10 million for each of the other two new start up
efforts – the trucking logistics effort and Bus Exchange effort, by
Q4 2019.
The Company also reinforced its intent to
acquire Yatra expeditiously, once the due diligence is
satisfactorily completed.
Naveen Kundu, Managing Director of EbixCash’s
Mercury Luxury & Corporate Division (Formerly Founder of
Leisure Corp) said, “We are excited by the momentum we have
generated in the travel markets both in India and abroad. January
was a record month for the travel Division. Mercury has won most of
the deals it has been involved in lately, with a near 100% hit
ratio and has attained a book size so far of about $ 15 million in
2019 already, by adding 18 new large corporate clients. Buoyed by
the growth, we are targeting that our events business (MICE) should
grow almost 100% in 2019, as compared to the period before Ebix
acquired the Leisure Corp travel events business.”
TC GuruPrasad, Managing Director of EbixCash
WorldMoney Division (Formerly Founding CEO of Centrum Direct Ltd.)
said, “In the short period of less than one year since Centrum
Direct was acquired by Ebix, we have been able to become a
dominating player in many areas in the financial markets, with an
estimated GMV of $12.5 billion annually. Today, we have forex
counters in 29 out of the 32 international airports in India.
Besides, Ebix’s international expanse has allowed us to expand our
business abroad and win large deals abroad. EbixCash is not only
continually growing organically and inorganically but is also
contributing to India in terms of job creation – we intend to use
India as a central hub for all our EbixCash international
operations.”
EbixCash’s parent Company Ebix has the honor of
being featured 5 times in Fortune’s list of 100 fastest growing
companies in the last decade. Ebix also has a track record of
18,500% shareholder growth since December 2000 besides having
delivered 20 years of sequential growth in terms of Revenues, EPS
and operating income.
About Ebix, Inc.
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 Company’s 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. $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.
Through its various SaaS-based software
platforms, Ebix employs thousands of domain-specific technology
professionals to provide products, support and consultancy to
thousands of customers on six continents. For more information,
visit the Company’s website at www.ebix.com
SAFE HARBOR REGARDING FORWARD-LOOKING
STATEMENTS
As used herein, the terms “Ebix,” “the Company,”
“we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation,
and its consolidated subsidiaries as a combined entity, except
where it is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release
contains forward-looking statements and information within the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. This
information includes assumptions made by, and information currently
available to management, including statements regarding future
economic performance and financial condition, liquidity and capital
resources, acceptance of the Company's products by the market, and
management's plans and objectives. In addition, certain statements
included in this and our future filings with the Securities and
Exchange Commission ("SEC"), in press releases, and in oral and
written statements made by us or with our approval, which are not
statements of historical fact, are forward-looking statements.
Words such as "may," "could," "should," \"would," "believe,"
"expect," "anticipate," "estimate," "intend," "seeks," "plan,"
"project," "continue," "predict," "will," "should," and other words
or expressions of similar meaning are intended by the Company to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are found at various places throughout
this report and in the documents incorporated herein by reference.
These statements are based on our current expectations about future
events or results and information that is currently available to
us, involve assumptions, risks, and uncertainties, and speak only
as of the date on which such statements are made.
Our actual results may differ materially from
those expressed or implied in these forward-looking statements.
Factors that may cause such a difference, include, but are not
limited to those discussed in our Annual Report on Form 10-K and
subsequent reports filed with the SEC, as well as: the risk of an
unfavorable outcome of the pending governmental investigations or
shareholder class action lawsuits, reputational harm caused by such
investigations and lawsuits, the willingness of independent
insurance agencies to outsource their computer and other processing
needs to third parties; pricing and other competitive pressures and
the Company's ability to gain or maintain share of sales as a
result of actions by competitors and others; changes in estimates
in critical accounting judgments; changes in or failure to comply
with laws and regulations, including accounting standards, taxation
requirements (including tax rate changes, new tax laws and revised
tax interpretations) in domestic or foreign jurisdictions; exchange
rate fluctuations and other risks associated with investments and
operations in foreign countries (particularly in Australia, UK and
India wherein we have significant operations); equity markets,
including market disruptions and significant interest rate
fluctuations, which may impede our access to, or increase the cost
of, external financing; and international conflict, including
terrorist acts.
Except as expressly required by the federal
securities laws, the Company undertakes no obligation to update any
such factors, or to publicly announce the results of, or changes to
any of the forward-looking statements contained herein to reflect
future events, developments, changed circumstances, or for any
other reason.
Readers should carefully review the disclosures
and the risk factors described in the documents we file from time
to time with the SEC, including future reports on Forms 10-Q and
8-K, and any amendments thereto. You may obtain our SEC filings at
our website, www.ebix.com under the "Investor Information" section,
or over the Internet at the SEC's web site, www.sec.gov.
CONTACT:
Naveen Kundu or TC Guruprasad or Milan Ganatra or Darren Joseph or Gautam Sharma
IR@ebix.com or 678 281 2027
David Collins or Chris Eddy
Catalyst Global - 212-924-9800 or ebix@catalyst-ir.com
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