Ebix approves $100M stock repurchase
A day after sale to Goldman Sachs was called off, Ebix approves $100M stock buyback
ATLANTA (AP) -- A day after its sale to Goldman Sachs was called off, insurance technology provider Ebix Inc. said Friday it will buy back up to $100 million shares over the next two years.
Ebix said the move is part of a review of its options to enhance value for shareholders. The company had 37.2 million shares on the market as of May 8.
Goldman Sachs and Ebix terminated the proposed sale Thursday after Ebix said it is facing an investigation into alleged misconduct at its business. Goldman Sachs & Co. agreed to buy Ebix for about $744 million, or $20 per share, in May. Ebix said it was informed this month that the government is investigating allegations of intentional misconduct brought.
Ebix says the lawsuits and an investigation by the Securities and Exchange Commission on the same issue were previously disclosed in its regulatory filings, and it said the allegations are without merit.
Shares of Ebix sank 44.2 percent Thursday and fell 13.5 percent to $9.52 Friday, reaching a three-year low of $8.21 during the day. The shares lost 2 cents to $9.50 in aftermarket trading.
