NU Online News Service, Feb. 24, 2004, 4:23 p.m. EST – Ebix Inc., Atlanta, has agreed to pay up to $10.5 million for another insurance technology company, LifeLink Corp Inc., Park City, Utah.[@@]
Ebix, which was founded in 1976 as Delphi Information Systems Inc., sells software and consulting services to insurance agents and insurance brokers.
LifeLink also has been selling life insurance sales software and Web-based life insurance sales support services for more than 20 years. One of its key services, WinFlex, gives agents and brokers the ability to use a single computer system to exchange information with many different carriers.
LifeLink reported $5.3 million in revenue for 2003, up 23% from the 2002 total, Ebix says.
Acquiring LifeLink will help Ebix add “hundreds of brokers and approximately 35 life insurance companies as customers,” Ebix says.
Ebix says it already has completed the acquisition.
Under the deal terms, Ebix has acquired all of the outstanding capital stock of LifeLink in exchange for $5 million in cash and $3 million in cash at closing. Ebix also has agreed to make $2.5 million in additional cash payments over a 5-year period.
Ebix says it intends to run LifeLink as a separate profit center and keep all of LifeLink’s 35 employees.