Ebix (NASDAQ:EBIX) announces that it acquired Brazilian firm WDev Soluções em Tecnologia S/A through its Latin American subsidiary.
The company says it wants to become the largest one-stop insurance software services provider in Brazil, while also offering a wider repertoire of insurance related software services to prospective clients in Latin American markets.
Ebix funded the purchase using cash reserves. The transaction is expected to be immediately accretive.
Ebix (EBIX -0.8%) this summer had initially offered $9.50 per share for Patriot National (NYSE:PN), later enhancing that to a total enterprise value of $475M (which likely would have exceeded that $9.75 valuation).
The Patriot board today rejects that $475M proposal, and will continue to evaluate other more attractive offers, and any other opportunities for value creation.
Ebix (NASDAQ:EBIX) announces the expansion of its existing credit facility to $400M from $240M.
The company says the boost is to fund its growth and share repurchase initiatives.
The $160 million increase in the bank line was the result of many members of the existing bank group expanding their share of the credit facility and the addition of PNC Bank, BMO Harris Bank, KeyBank, HSBC Bank, Cadence Bank and Trustmark National Bank to the Banking Syndicate.
The new credit facility includes a 5-year term loan for $125M and a 5-year revolving credit facility for $275M.
The company also announced that it now has access to total funds of approximately $250M to fund any of its working capital or any other growth and share repurchase initiatives. This includes the worldwide cash balances in the bank of approximately $70M in addition to available credit line of approximately $180M.
Robin Raina, President and CEO, Ebix Inc. said, "We are excited to have the support of eleven leading financial institutions towards funding our future growth initiatives."
Ebix's (EBIX +1.6%) board has approved a 3:1 split. The split, Ebix's first since 2010, is expected to have a record date around July 15, and to go into effect "on or about" August 1. Shareholders still need to approve an increase in Ebix's authorized shares at a special meeting expected to be held during the last week of July.