Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced that it has acquired Connecticut based HealthConnect Systems, a leading online Exchange for buyers and sellers of health insurance and employee benefits. Ebix also announced that HealthConnect would be immediately integrated into its EbixHealth Division.
Ebix expects the transaction to be immediately accretive to Ebix Earnings per Share (EPS). Ebix disclosed that it funded this transaction completely in cash using its bank debt line. No Ebix shares were issued and no investment bankers were involved in the transaction.
HealthConnect’s state-of-the-art online quoting exchange provides a variety of services to be utilized by the principal constituents involved in the Health insurance industry:
- For medical carriers, HealthConnect provides private label portals for sales automation (quoting, enrollment and renewals) as well as participation in a multi carrier network (distribution of rate, benefit and physician data, enrollment connectivity and market intelligence).
- For ancillary carriers (dental, vision, life, limited medical, gap, voluntary, etc.), HealthConnect provides private label portals for sales automation (quoting, enrollment and renewals) as well as product promotion through participation a multi carrier-quoting network.
- For employee benefit administration service providers (payroll, 401k, COBRA, TPA’s, etc.), HealthConnect provides product promotion through integration with its human resource management system.
- For agents, HealthConnect provides automation of targeted internal operations as well as the provision of complete employee benefit administration and human resource management systems to clients.
- General agents can distribute access to HealthConnect to their agency clients through their own branded web sites.
- Employers and employees access HealthConnect through a portal provided by their agent. Through the portal, branded HRConnect, they can transact with multiple carriers and service providers encompassing the entire spectrum of employee benefits through a single, integrated system.
- HealthConnect’s Exchange presently processes roughly 12,000 quote requests per day from 6,700 agents across nineteen states. HealthConnect has offices in Norwalk, CT, Bohemia, NY, Fresno, CA and Pasadena, CA.
HealthConnect Systems CEO Peter Everett said, “This combination is a compelling, ‘hand in glove’ fit that will substantially increase the value proposition we provide to our combined client base. The transaction will accelerate our product development through utilizing Ebix’s existing capabilities and leveraging their significant resource base. We will also augment Ebix’s capabilities in targeted areas and together create the first end-to-end health and benefits network in the U.S. providing a complete range of functionality for all industry constituents – carriers, agents, general agents, employers, employees, TPA’s et al.”
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