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ATLANTA, May 1, 2013 (GLOBE NEWSWIRE) -- 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 entered into a definitive merger agreement to be acquired by an affiliate of Goldman, Sachs & Co. ("Goldman Sachs") in a transaction valued at approximately $820 million, including the assumption of any outstanding debt.
Under the terms of the agreement, Ebix shareholders will receive $20.00 per share in cash. This represents a premium of approximately 18% over Ebix's average daily closing price over the preceding 30 days.
"After considering a number of potential alternatives, the Ebix board, acting on the recommendation of a special committee comprised entirely of independent directors, unanimously approved this transaction, which provides significant and immediate value to shareholders," said Robin Raina, Chairman and Chief Executive Officer of Ebix. "With our market-leading servicing platforms and talented team of insurance and technology professionals, Ebix will be well-positioned as a private company to continue to execute on our strategic initiatives and pursue growth opportunities around the world."
"We have great respect for Ebix and its strong commitment to providing customers with the highest quality of software and E-commerce services in the insurance industry," said Sumit Rajpal, Managing Director, Goldman Sachs. "We look forward to working with the Company and helping it maximize its growth potential."
The board of directors of Ebix, on the unanimous recommendation of a special committee of independent directors of the board, has approved the merger agreement and has resolved to recommend that Ebix shareholders approve the transaction. Robin Raina and the Rennes Fondation, which together own approximately 19% of the outstanding common shares, have entered into separate voting agreements under which they have agreed, subject to certain exceptions, to vote their respective shares in favor of the proposed transaction. Robin Raina and the Rennes Fondation will continue to be meaningful equity investors in Ebix.