Bloomberg News

Ebix Jumps After Agreeing to Go Private in Goldman Sachs Deal

May 01, 2013

Ebix Inc. (EBIX:US) jumped to its highest price in almost six months and topped a $20-a-share takeover bid from Goldman Sachs Group Inc. that would take the supplier of insurance software and services private.

Shares of Ebix rose (EBIX:US) as much as 14 percent to $21.25, the highest intraday since Nov. 5, before settling to $20.52 at 10:43 a.m. in New York. Goldman Sachs agreed to pay 18 percent more than the average daily closing price for the last 30 days, Atlanta-based Ebix said today in a statement.

The agreement includes a 45-day window where Ebix can solicit other offers, according to the statement. Ebix said its special committee of independent directors unanimously supported the Goldman Sachs bid, which the companies valued at $820 million including assumption of outstanding debt.

“We have great respect for Ebix and its strong commitment to providing customers with the highest quality of software and e-commerce services in the insurance industry,” Sumit Rajpal, a managing director at New York-based Goldman Sachs, said in the statement. “We look forward to working with the company and helping it maximize its growth potential.”

Ebix said in March that 2012 net income (EBIX:US) fell 1 percent to $70.6 million as revenue increased 18 percent to $199.4 million.

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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Companies Mentioned

  • EBIX
    (Ebix Inc)
    • $12.69 USD
    • -0.01
    • -0.08%
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