Goldman Sachs affiliate to acquire insurance software firm Ebix for $743 mn

Ebix Inc, a Nasdaq-listed insurance software maker yesterday agreed to be acquired by an affiliate of Goldman Sachs & Co for about $743 million.

The deal is worth about $820 million including debt.

Under the terms of the deal, Ebix shareholders will receive $20 per share in cash, an 18-per cent premium to the company's average daily closing price over the last 30 days.

The company's board of directors has approved the merger and two of Ebix's top shareholders, Robin Raina, the chairman and CEO of Ebix, and the Rennes Foundation, who own a combined 19 per cent, have agreed to tender their shares in favor of the merger.

The deal contains a "go-shop" provision under which Ebix may solicit alternative proposals from third parties during the next 45 days.

Ebix is a leading international supplier of on-demand software and e-commerce services to the insurance industry. It provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency

systems and BPO services to custom software development for all entities involved in the insurance industry.

The Atlanta-based company has over 30 offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada.

''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 Raina.''

"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 proposed transaction, which is subject to antitrust and shareholder approval, is expected to close in the third quarter of 2013.