Ebix Commences Due Diligence in Yatra Online with the Goal of Signing a Formal Agreement to Acquire Yatra by 15th May 2019
JOHNS CREEK, Ga., March 19, 2019 (GLOBE NEWSWIRE) -- Ebix, Inc. (EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries today announced that it has officially engaged with Yatra Online, Inc. to commence its due diligence immediately, with the goal of working towards signing the agreement to acquire Yatra Online latest by 15th May 2019. Ebix intends to merge Yatra Online in its Indian EbixCash subsidiary set up. Ebix’s offer is subject to due diligence and customary regulatory and other closing conditions.
EbixCash also announced that encouraged by the sales momentum the Company has generated, along with its proven acquisition strategy towards building India’s largest end-to-end Financial Exchange, EbixCash Operation on a standalone basis is targeting quarterly Annualized Revenues of $600 million by Q4 of 2019. The Company also said that its EbixCash operation is targeting Quarterly Annualized operating income of $180 million or more by Q4 of 2019.
Making the announcement, EbixCash provided an update on the performance of its acquisition strategy and the performance of each of the related Divisions, while comparing Q4 2018 Annualized numbers for each Division to the acquired revenue for each Division, on a constant currency basis –
- Consolidated EbixCash Operations - On a consolidated basis, the EbixCash operation has grown 35% in terms of revenues and 677% in terms of operating income, as compared to the acquired revenue. Also, the Company’s sales efforts have led to all of the Company’s Divisions generating intrinsic growth in terms of revenues and operating income both.
- Forex, Retail card and Money Remittance Division – The Q4 2018 Annualized Revenues for the consolidated Division on a constant currency basis grew 19% intrinsically, while operating income grew 135%. The Company Forex and money remittance revenues grew by 33% while the retail card revenues were down by 24%, mainly because of the Company’s focus on higher margin services like remittance and Forex. The Forex, retail card and remittance division on a consolidated basis conducts gross merchandize value (GMV) of approximately $12.5 billion a year.
- Travel Division – Sales efforts by the Division led to Q4 2018 Annualized Revenues for the consolidated Travel Division on a constant currency basis, growing by 39%, while operating income grew 1,379%. The Company’s India Travel Division revenues grew intrinsically by 23% while the international travel revenues grew year-over-year by 110%. The travel division on a consolidated basis conducts GMV of approximately $2.5 billion a year.
- Financial Technologies Division – The Q4 2018 Annualized Revenues for the consolidated Financial Technologies Division on a constant currency basis grew 15% intrinsically, while operating income grew 718%. The Division presently is a leader in lending, asset management & wealth management technology in India with 50% of its revenues coming from Europe, Middle East, Africa and ASEAN countries.
- E-Learning Division - The Q4 2018 Annualized Revenues for the E-Learning Division on a constant currency basis grew 52% intrinsically, while operating income grew 267%.
- New Startups – AHA Cabs Division grew by 45% in terms of revenues while the remaining two startup efforts are expected to contribute strongly to EbixCash revenues by Q4 2019. EbixCash is targeting Annualized revenues of approximately $10 million for each of the other two new start up efforts – the trucking logistics effort and Bus Exchange effort, by Q4 2019.
The Company also reinforced its intent to acquire Yatra expeditiously, once the due diligence is satisfactorily completed.
Naveen Kundu, Managing Director of EbixCash’s Mercury Luxury & Corporate Division (Formerly Founder of Leisure Corp) said, “We are excited by the momentum we have generated in the travel markets both in India and abroad. January was a record month for the travel Division. Mercury has won most of the deals it has been involved in lately, with a near 100% hit ratio and has attained a book size so far of about $ 15 million in 2019 already, by adding 18 new large corporate clients. Buoyed by the growth, we are targeting that our events business (MICE) should grow almost 100% in 2019, as compared to the period before Ebix acquired the Leisure Corp travel events business.”
TC GuruPrasad, Managing Director of EbixCash WorldMoney Division (Formerly Founding CEO of Centrum Direct Ltd.) said, “In the short period of less than one year since Centrum Direct was acquired by Ebix, we have been able to become a dominating player in many areas in the financial markets, with an estimated GMV of $12.5 billion annually. Today, we have forex counters in 29 out of the 32 international airports in India. Besides, Ebix’s international expanse has allowed us to expand our business abroad and win large deals abroad. EbixCash is not only continually growing organically and inorganically but is also contributing to India in terms of job creation – we intend to use India as a central hub for all our EbixCash international operations.”
EbixCash’s parent Company Ebix has the honor of being featured 5 times in Fortune’s list of 100 fastest growing companies in the last decade. Ebix also has a track record of 18,500% shareholder growth since December 2000 besides having delivered 20 years of sequential growth in terms of Revenues, EPS and operating income.
About Ebix, Inc.
With 50+ offices across 6 continents, Ebix, Inc., (EBIX) endeavors to provide On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. In the Insurance sector, Ebix’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world.
With a "Phygital” strategy that combines 320,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets. EbixCash’s Forex operations have emerged as a leader in India’s airport Foreign Exchange business with operations in 32 international airports including Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting over $4.8 billion in gross transaction value per year. EbixCash’s inward remittance business in India conducts approx. $5 billion gross annual remittance business, confirming its undisputed leadership position in India. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia’s leading travel exchanges with over 2,200+ employees, 212,450+ agent network, 25 branches and over 9,800 corporate clients; processing an estimated $2.5 billion in gross merchandise value per year.
Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific 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
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As used herein, the terms “Ebix,” “the Company,” “we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.
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Naveen Kundu or TC Guruprasad or Milan Ganatra or Darren Joseph or Gautam Sharma
IR@ebix.com or 678 281 2027
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