Ebix, an on-demand software and e-commerce service developer, has acquired Miles Software in a $19m deal.
The transaction has an additional contingent earn out of up to $8.5m payable after two years.
Through the acquisition, Miles will act as Ebix’s investment, wealth and asset management divisions and will be interfaced across both EbixCash financial exchanges and EbixExchange insurance exchanges.
Miles Software is a wealth and asset management software provider for banks, asset managers and wealth management firms. The company operates across three separate products MoneyWare, its wealth and asset management platform, Investment Pro, a cloud-based portfolio management solution, and Investment Compliance, a regulation support platform.
Ebix offers on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries. Within the insurance space the company builds insurance and reinsurance exchanges.
The company also designs SaaS-based solutions for CRM, front-end and back-end systems, outsourced administrative and risk compliance.
For the financial year of 2017, the company had revenues of $8m and an EBITDA of 8 per cent. The company is expecting to have a growth rate of more than 20 per cent a year.
Through this acquisition, Ebix expects to instantly increase its revenue and forecasts eight cents in increased diluted EPS.
The transaction was made via internal cash reserves and no investment bankers were used for the deal completion.
Miles Software founder and CEO Milan Ganatra said, “With 7,500+ employees servicing clients in India, Ebix offers us expansion possibilities that are truly exciting.
“Ebix’s expanse across the world and more specifically in North America, Australia, UK and Brazil has the potential of opening up immense new opportunities for our products, as we interface them to Ebix CRM and other Exchange solutions in these markets.â€
Last month, Miles Software formed a strategic partnership with the State Bank of Mauritius Group to launch MoneyWare across the bank.
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