Ebix acquires PlanetSoft for $40 million

Ebix acquires PlanetSoft for $40 million; third transaction in 2 months as it expands

Associated Press

ATLANTA (AP) -- Ebix will buy PlanetSoft for $40 million, its third acquisition of a life insurance technology firm during a two-months shopping spree.

The software maker will pay $35 million cash and $5 million worth of its shares, it said Tuesday.

PlanetSoft shareholders will also get additional cash payments based on revenue levels over the next two years, Ebix said.

The agreement is expected to be completed in the next week, Ebix said.

PlanetSoft Inc., based in Aliso Viejo, Calif., powers data exchanges that streamline core insurance operations in the areas of client acquisition, underwriting and distribution management. It has 575 employees in the United States and India, working with life insurers in both countries.

Ebix earlier acquired Fintechnix and Taimma. It said the three acquisitions provide it with added technology and strengthen its position in the insurance software industry.

Ebix CEO Robin Raina said the company is now on a path to exceed its short-term goal of reaching an annualized revenue rate of $200 million in 2012.

Shares of Ebix Inc. fell 21 cents, or 1.2 percent, to $16.63 in morning trading.

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