EbixCash Acquires AssureEdge Global Services to Strengthen Back Office Offerings to Clients

Rhea-AI Summary

EbixCash, a subsidiary of Ebix (NASDAQ: EBIX), has acquired a 70% stake in AssureEdge Global Services, a pan-India BPO firm with 1,800 employees. AssureEdge offers various BPO services from six contact centers and is known for customer retention solutions. The deal is expected to enhance EbixCash's service capabilities, particularly in fulfillment and customer support. AssureEdge aims for a workforce increase to 2,500 by March 2021 and anticipates organic growth of 35% to 50% in 2021, operating at around 30% EBITDA margins.

Positive

• Acquisition of AssureEdge enhances EbixCash service offerings, especially in customer support and fulfillment.
• Anticipated organic growth of 35% to 50% in 2021 indicates strong market potential.
• AssureEdge's 30% EBITDA margins suggest robust profitability.
• Potential synergies from integration with EbixCash can improve operational efficiencies.

Negative

• None.

NOIDA, India and JOHNS CREEK, Ga., Nov. 23, 2020 (GLOBE NEWSWIRE) -- EbixCash, a fully-owned subsidiary of Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries, today announced that it has acquired a 70 percent stake in a 1,800 person, pan-India based BPO company AssureEdge Global Services.

AssureEdge is today recognized as the first independent customer retention and customer response organization in India, with a vareiety of BPO offerings via six contact centers across the country. AssureEdge serves a number of industries and clients that have cross-selling value for EbixCash services. AssureEdge focuses on top priority areas like sales, fulfillment and customer retention for its clients. The Company today services 34+ large corporate clients, including some very well known names in the BFSI, telecom, entertainment and ecommerce sectors. For more information, visit the Company’s website at https://www.assureedgeglobal.com

Based on client commitments, AssureEdge is presently committed to growing its employee strength to 2,500 by the end of March 2021. The Company presently has a strong focus on growing its Human Resource Outsouring (HRO) and Last Mile Delivery (LMD) verticals, and is targeting 35% to 50% organic growth in the year 2021. AssureEdge presently generates approximately 30% EBITDA margins.

AssureEdge CEO and Founder Bhupesh Tambe will continue to lead the Company with a 30 percent stake in the venture. A proven leader with global experience of over 30 years and specializing in rapid growth and turnaround opportunities, Bhupesh will be immediately focusing his energies on AssureEdge integration into EbixCash, the immediate growth opportunities and the synergies offered by the integration. As a part of empowering AssureEdge, the Company will be rebranded as EbixCash Global BPO services.

Robin Raina, Chairman of the Board, President & CEO, Ebix, said: “AssureEdge can serve to handle fulfillment, collections and last mile delivery for EbixCash, as we converge it with our EbixCash financial and insurance technology platforms. We see AssureEdge serving our pre-sales and post-sales support for the BSE Ebix insurance platform, besides helping us provide an end-to-end fulfillment solution to banks on our lending, wealth management, asset management and credit card processing solutions for banks and financial institutions.”

About EbixCash and Ebix, Inc.

With a "Phygital” strategy that combines 320,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets. EbixCash’s Forex operations have emerged as a leader in India’s airport Foreign Exchange business with operations in 32 international airports including Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting over $4.8 billion in gross transaction value per year. EbixCash’s inward remittance business in India conducts approx. $6.5 billion gross annual remittance business, confirming its undisputed leadership position in India. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia’s leading travel exchanges with over 2,200+ employees, 212,450+ agent network, 25 branches and over 9,800 corporate clients; processing an estimated $2.5 billion in gross merchandise value per year. For more information, visit the Company’s website at www.ebixcash.com

With 50+ offices across 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. In the Insurance sector, Ebix’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world. For more information, visit the Company’s website at www.ebix.com

Contact details:

Darren Joseph

IR@ebix.com or 678 281 2027

David Collins or Chris Eddy

Catalyst Global - 212-924-9800 or ebix@catalyst-ir.com

FAQ

What is the significance of Ebix acquiring AssureEdge Global Services?

The acquisition strengthens EbixCash's capabilities in customer support and fulfillment, which could lead to increased operational efficiency and service offerings.

What are the growth projections for AssureEdge after the acquisition by Ebix?

AssureEdge aims for a workforce increase to 2,500 by March 2021 and projects organic growth of 35% to 50% for the year 2021.

How does AssureEdge's acquisition impact Ebix's financials?

AssureEdge contributes approximately 30% EBITDA margins, enhancing Ebix's overall profitability and potentially increasing revenue streams.

What percentage stake did Ebix acquire in AssureEdge?

Ebix acquired a 70% stake in AssureEdge Global Services.