|Ebix Acquires Online Health Exchange HealthConnect Systems|
Company Expects the Merger to be Immediately Accretive
ATLANTA--(BUSINESS WIRE)-- Ebix, Inc. (NASDAQ:EBIX - News), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced that it has acquired Connecticut based HealthConnect Systems, a leading online Exchange for buyers and sellers of health insurance and employee benefits. Ebix also announced that HealthConnect would be immediately integrated into its EbixHealth Division.
Ebix expects the transaction to be immediately accretive to Ebix Earnings per Share (EPS). Ebix disclosed that it funded this transaction completely in cash using its bank debt line. No Ebix shares were issued and no investment bankers were involved in the transaction.
HealthConnect’s state-of-the-art online quoting exchange provides a variety of services to be utilized by the principal constituents involved in the Health insurance industry:
For medical carriers, HealthConnect provides private label portals for sales automation (quoting, enrollment and renewals) as well as participation in a multi carrier network (distribution of rate, benefit and physician data, enrollment connectivity and market intelligence).
For ancillary carriers (dental, vision, life, limited medical, gap, voluntary, etc.), HealthConnect provides private label portals for sales automation (quoting, enrollment and renewals) as well as product promotion through participation a multi carrier-quoting network.
For employee benefit administration service providers (payroll, 401k, COBRA, TPA’s, etc.), HealthConnect provides product promotion through integration with its human resource management system.
For agents, HealthConnect provides automation of targeted internal operations as well as the provision of complete employee benefit administration and human resource management systems to clients.
General agents can distribute access to HealthConnect to their agency clients through their own branded web sites.
Employers and employees access HealthConnect through a portal provided by their agent. Through the portal, branded HRConnect, they can transact with multiple carriers and service providers encompassing the entire spectrum of employee benefits through a single, integrated system.
HealthConnect’s Exchange presently processes roughly 12,000 quote requests per day from 6,700 agents across nineteen states. HealthConnect has offices in Norwalk, CT, Bohemia, NY, Fresno, CA and Pasadena, CA.
HealthConnect Systems CEO Peter Everett said, “This combination is a compelling, ‘hand in glove’ fit that will substantially increase the value proposition we provide to our combined client base. The transaction will accelerate our product development through utilizing Ebix’s existing capabilities and leveraging their significant resource base. We will also augment Ebix’s capabilities in targeted areas and together create the first end-to-end health and benefits network in the U.S. providing a complete range of functionality for all industry constituents – carriers, agents, general agents, employers, employees, TPA’s et al.”
Ebix Chairman of the Board, President & CEO Robin Raina said, "Ebix has always been focused on providing end-to-end solutions in every industry segment. With the acquisition of HealthConnect, Ebix now is the only Company in the industry who can take a health insurance transaction across diverse entities like Employers, Brokers, General Agents, Third Party Administrators, Insurance Companies etc. while providing a wide variety of services like CRM, enrollment, online quoting, benefit portals, content management, claims handling, claims accounting, claims adjudication, COBRA, FSA administration to these entities.”
“The HealthConnect online quoting solution and network provides us the missing piece in our Health product portfolio. It brings in top rated insurance companies like Aetna and Horizon to Ebix, providing both sides an opportunity to cross-sell complementary services to each other’s client base.” Robin Raina added, “With 85% plus recurring revenue streams, good history of profitability, consistent margins, low customer attrition rates, proven management record, complimentary technologies and SaaS based architecture, HealthConnect met all the criteria of a good acquisition target for Ebix. This deal is a strategic step forward to establish Ebix as a Health Information Exchange and is likely to be followed by other strategic steps in coming months and years.”
About HealthConnect Systems
HealthConnect is the leading online Exchange network for buyers and sellers of health insurance and employee benefits. HealthConnect’s multi payer portal enables medical and ancillary carriers as well as service providers to increase sales, reduce customer acquisition costs and obtain actionable market intelligence about their broker distribution channel. Health insurance agents can reduce costs through automation and increase sales through competitive differentiation and increased retention, and employers and employees can eliminate the administrative burden of working with multiple providers through separate systems. Since 1993, HealthConnect has successfully completed over 50 carrier implementations. HealthConnect’s network processes approximately 12,000 quote requests per day from 6,700 agents across nineteen states. For more information, visit the Company’s website at www.healthconnectsystems.com
About Ebix, Inc.
A leading international supplier of On-Demand software and E-commerce services to the insurance industry, Ebix, Inc., (NASDAQ: EBIX - News) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. Ebix’s focus on quality has enabled it to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model (CMM). With a recent ISO 27001-security certification, the Company also has an ISO 9001:2000 certification for both its development and BPO units in India. For more information, visit the Company’s website at www.ebix.com
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