JOHNS CREEK, Ga., Jan. 04, 2018 (GLOBE NEWSWIRE) -- Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today announced that it has entered into an agreement to acquire the Money Transfer Service Scheme (MTSS) Business of Transcorp International Limited (BSE:TRANSCOR.BO), for approximately $7.4 million, through one of its Indian subsidiaries. Transcorp International Inward Remittance Exchange encompasses 7,500 Distribution Outlets, 40 Branches, processing approximately 1.7 Million Transactions Per Annum.
The agreement while approved by the Transcorp International Board, is subject to its shareholders and other regulatory/commercial approvals. The customary process for such approvals can take a timeline of 45 to 60 days.
The acquisition once approved, is expected to be accretive to Ebix earnings immediately. The Company funded the transaction using its internal cash reserves. Ebix did not use any investment bankers for the transaction.
With a market share of almost 10% percent of Western Union's inward remittance flows in India, Transcorp International was one of the Top 5 largest international remittance (MTSS) players in India. This is Ebix’s fourth remittance related acquisition, following the announcement of the acquisition of YouFirst Money Express Private Limited and the asset purchases of Paul Merchants Limited and Wall Street Finance Limited. Ebix intends to consolidate all these acquisitions into its EbixCash Financial Exchange operations bringing significant synergies and reducing redundancies to the combined operation.
The acquisition of the MTSS Business, which controls the 5th largest share of the market, would further strengthen Ebix’s emerging leadership position in the Financial Exchange markets in India. The addition of Transcorp International MTSS assets following its acquisition of leading travel exchange Via.com, will increase the EbixCash Financial Exchange expanse to 231,500 physical distribution outlets, with an Omni-channel online digital platform that encompasses leadership in money remittance (domestic & international), travel, pre-paid & gift cards, utility payments, etc. In addition, Ebix’s recent joint venture initiative with Bombay Stock Exchange positions it strongly in India’s insurance sector.
The addition of this international capability significantly expands upon Ebix’s overall participation in India’s remittance channels, and will allow Ebix’s financial exchange to remit money sent from abroad through multiple partners.
EbixCash is already the largest domestic remittance exchange in India with domestic remittance volume of approximately $100 million per month. It is also a recognized leader in prepaid cards, domestic remittances and bill payments, processing approximately 600,000 transactions per day and approximately $2 Billion in annual payment volume. EbixCash through its travel portal Via.com is also one of South East Asia’s leading travel exchanges with over 110,000 distribution outlets and 8,000 corporate clients, processing over 24.5 million transactions every year.
Transcorp International Limited Chairman and Managing Director Ashok Aggarwal said, “EbixCash has established a dominant customer friendly international remittance business in India with a reach that is many times larger than any other MTSS player in the marketplace. We genuinely believe that EbixCash is a logical home for Transcorp MTSS assets, as it complements EbixCash’s financial exchange portfolio perfectly, opening up tremendous cross-selling opportunities on both sides. We are excited about the possibilities this offers for our partners and customers both.”
Ebix Chairman, President and CEO Robin Raina, “Following up on other MTSS assets acquisitions in the last few months, the acquisition of Transcorp International MTSS assets is a logical step forward in our efforts to expand our presence in the Financial Exchange markets in India. It will help establish EbixCash as an undisputed market leader, by leaps and bounds, in the inward international remittance exchange business. Also, the consolidation of Transcorp MTSS assets into our existing Financial Exchange infrastructure will further enhance our operating margins.”
About Ebix, Inc.
A leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, Ebix, Inc. provides end-to-end on-Demand solutions ranging from infrastructure exchanges, front end & back end enterprise systems, outsourced administrative & custom software development solutions, and risk compliance solutions for various entities involved in these industries.
With 40+ offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the US and the UK, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums annually on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of domain specific business and 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
About Transcorp International Limited
Transcorp International Limited (BSE:TRANSCOR.BO), is a diversified conglomerate having prominent interests in International Money Transfer, Foreign Exchange, Investments, Insurance, and Tours & Travels. Under the aegis of specific RBI Licenses, Transcorp offers International Money Transfer and Forex Services from its widespread network consisting of 40 offices and approximately 7,500 Franchisee locations across India. For more information, visit the Company’s website at http://www.transcorpint.com/Money-transfer.htm
An Ebix Group initiative, EbixCash is emerging as one of the leading Financial Exchanges in India. With a ‘Phygital” strategy that combines 231,500 physical distribution outlets to an Omni-channel online digital platform, EbixCash has established an enterprise financial exchange portfolio that encompasses leadership in money remittance (domestic & international), travel, pre-paid & gift cards, utility payments etc. Ebix’s recent joint venture initiative with Bombay Stock Exchange positions it strongly in India’s insurance sector. EbixCash’s portfolio of products can be accessed digitally anywhere as also across its distribution outlets spread over 5,500+ cities and towns. For further details, visit www.ebixcash.com