Upcoming AWS Coverage on Simulations Plus Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 27, 2016 / Active Wall St. blog coverage looks at the headline from Ebix, Inc. (NASDAQ: EBIX) as the Company announced on December 23, 2016, that it has acquired Rio De Janeiro-based WDEV Soluções em Tecnologia S/A in an attempt to establish itself as the leading insurance software services provider in Brazil. Under the terms of the agreement, Ebix Latin America, a subsidiary of Ebix, acquired all the outstanding capital shares of WDEV. The purchase was funded entirely through the internal cash reserves of the firm, where, no Ebix's share was issued for the acquisition. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
One of Ebix's competitors within the Business Software & Services space, Simulations Plus, Inc. (NASDAQ: SLP), released on December 08, 2016, the preliminary revenues for the first quarter of its fiscal year 2017, ending November 30, 2016. AWS will be initiating a research report on Simulations Plus in the coming days.
Ebix is primarily a software and ecommerce solutions provider serving a diversified client base across insurance, healthcare, and finance industries. The portfolio of Ebix comprises of application software products for the insurance industry, including custom software development. Ebix boasts of a pan-nation presence through its more than 40 offices across the world. The firm operates through four channels, which are:
2. Carrier Systems
3. Broker Systems
4. Risk Compliance Solutions (RCS)
WDEV, based in Rio de Janeiro, is a specialty software and services firm actively operating across the insurance sector since 2012. The firm is involved in providing Software-as-a-Service, (SaaS) products, operational consulting and processing services to the insurance marketplace. With net revenue run rate amounting to $11 million annually, WDEV offers Migrations, Conversions, Business Process Automation and Business, and IT consulting.
The Insurance Marketplace
Ebix Latin America views WDEV's business as a complementary venture to its insurance software service offerings. As WDEV is recognized across the Brazilian market sphere for its innovation across products and services, it would be the perfect entity to form the single largest insurance software service provider in the nation. WDEV also boasts of extensive domain knowledge of the insurance segment and under the new ‘Ebix Consulting', it will have access to the sales and marketing infrastructure from Ebix.
The insurance industry depends primarily on domain-specific expertise, and collaborating highly-skilled developers and business analysts from Ebiz along with the robust experience of WDEV in the segment is set to boost the business of the complementary ventures. This acquisition will additionally open new doors to cross-selling opportunities and bring in larger deals to Ebix Consulting.
The Insurance Portfolio Expansion
Ebix probably views revenue growth in long-term ventures. Seemingly, it is the reason behind the acquisition of WDEV, after almost 6 years, when it acquired the Rio de Janeiro-based Insurance Exchange, USIX Technologies on September 27, 2010. The insurance market is enjoying a 12%-15% growth in Brazil and through the planned acquisition of WDEV Ebix is set to establish itself as the single largest insurance software service provider in the nation. Ebix speculates that the combination of the two companies can be highly accretive for shareholders of the combined post-merger company, named as Ebix Consulting.
Ebix's share price finished last Friday's trading session at $58.20, marginally advancing 0.87%. A total volume of 68.98 thousand shares exchanged hands. The stock has advanced 28.52% and 72.83% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have skyrocketed 78.63%. The stock is trading at a PE ratio of 21.19 and has a dividend yield of 0.52%.Recently, Ebix executed 3 PSUs (Public Sector Undertakings) in India on September 12, 2016, towards the Socio-Economic Caste Census initiative of the Government of India.
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SOURCE: Active Wall Street