ATLANTA -- July 8, 2004 -- Ebix, Inc. (NASDAQ: EBIX), a leading international developer and supplier of software and e-commerce solutions to the insurance industry, today announced that effective July 1, 2004, it has completed the acquisition of the operating assets of Melbourne-based Heart Consulting Pty Ltd. The acquisition, Ebix's second this year, adds over 700 brokers in Australia to Ebix's roster of customers, providing Ebix with a leadership role in the Australian market. The acquisition is expected to be accretive to Ebix earnings per share for 2004.
Ebix acquired the operating assets of Heart for an aggregate purchase price (in Australian dollars) of A$10,175,000 (approximately US$7,017,000), payable as follows:
-- A$5,175,000 paid in cash at closing (approximately US$3,569,000).
-- A$2,000,000 (approximately US$1,379,000) payable in cash, without interest, over three years.
-- A$3,000,000 representing 157,728 restricted shares of Ebix common stock.
Heart Consulting's revenues increased approximately 36% to approximately US$3.0 million for the 12-month period ended June 30, 2004, generating EBITDA of approximately US$1.8 million.
In February 2004, Ebix completed the acquisition of LifeLink Corp. Inc., adding hundreds of U.S. brokers and approximately 35 life insurance companies as customers. LifeLink Corp. had revenues of $5.3 million for the year ended December 31, 2003, up approximately 23% from the prior fiscal year.
About Ebix
Founded in 1976, Ebix is one of the leading international suppliers of software and e-commerce solutions to the insurance industry. Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges.
Ebix provides a series of application software for the insurance industry ranging from carrier systems, agency systems, exchanges to custom software development for entities involved in the insurance and financial industries. The company, with bases in Singapore, Australia, US, New Zealand, India and Canada, employs insurance and technology professionals who provide products, support and consultancy to more than 3,000 customers on six continents.
Ebix combines new technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of organizations. The company is in the process of seeking SEI CMM Level 4 certification for its development units in India and has already secured an ISO 9001:2000 certification for both its development and call center units in India. For more information, visit the company's Web site at www.ebix.com.
About Heart Consulting Pty Ltd.
Heart Consulting Services Pty Ltd is an Australian wholly owned company, specializing in providing software and related services to the insurance broker markets for over 20 years. Heart's flagship application, WinBEAT is an Application Service Provider (ASP) system provided to more than 700 Australian insurance intermediary sites with over 3,500 users Australia-wide. For additional information about Heart, please visit www.heart.com.au
