Earlier this week,
Ebix, Inc.
(
EBIX
) declared that it has completely acquired two businesses,
PlanetSoft, Inc. and Fintechnix. Although Ebix had no financial
advisors in purchase transactions of the two companies, both
acquisitions are expected to eminently bolster Ebix's earnings
quite comprehensively.
The acquisition of PlanetSoft was initially proposed to be made
under a $40 million deal; however, the actual price paid is yet to
be disclosed. Ebix shall be able to conflate its insurance and
investment operations pervasively through this acquisition along
with few other benefits such as lead generation facilities,
customer relationship management (CRM), claims, issuance of
policies, etc.
The second acquisition of Sydney-based Fintechnix was made at a
cash price of AUD 5.25 million. This Australian firm has been
supporting various financial service institutions with its
information technology solutions since almost ten years now and is
likely to abet the technological standards of Ebix with this
synergy.
On June 5, 2012, the company had announced that it would project
an annualized run rate of nearly $100 million as earnings before
interest, taxes, depreciation and amortization (EBITDA) from its
recent acquisition spree. This appears to be quite achievable as
Ebix seems to be moving progressively towards not only meeting but
also surpassing its target of generating an annualized run rate of
$200 million in 2012 by being strategically proactive on the
acquisition front.
Even though Ebix strides ahead keeping in mind both short-term
and long-term goals, it would be wise to remain solicitous of
ominous rivals prevalent in the industry Ebix pertains to. Big
players in this regard include
Syntel, Inc.
(
SYNT
),
The KEYW Holding Corporation
(
KEYW
) and
Forrester Research Inc.
(
FORR
).
The company currently retains a Zacks #2 Rank, which translates
into a short-term 'Buy' rating. We also maintain a long-term
'Neutral' recommendation on the stock.
EBIX INC (EBIX): Free Stock Analysis Report
FORRESTER RESH (FORR): Free Stock Analysis
Report
KEYW HOLDING CP (KEYW): Free Stock Analysis
Report
SYNTEL INC (SYNT): Free Stock Analysis Report
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