Ebix Inc. announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Goldman Sachs & Co.
The transaction is valued at around $820 million including the assumption of any outstanding debt. In order to facilitate Ebix’s shift into a private company, Ebix shareholders will receive $20 per share in cash. The figure is 18 percent more than Ebix’ average daily closing price over the last 30 days.
Ebix made a name for itself over the years as an international supplier of on-demand software and e-commerce services to the insurance industry. They provide solutions including infrastructure exchanges, carrier systems, agency systems and BPO services. Ebix also runs AnnuityNet, which functions as an order-entry platform for annuity transactions. AnnuityNet is a major player in the annuity world, facilitating more than 25,000 annuity transactions and representing more than $2 billion in premium.
However, the insurance software company was probed by the Securities and Exchange Commission for its accounting practices in 2012. During that time, Ebix was also fending off lawsuits, including a class action suit in Atlanta.