US-based Ebix plans to acquire Transcorp’s remittance biz for $7.4 m

Ebix is a US-based supplier of on-demand software and e-commerce services to the insurance, financial, e-governance and healthcare industries, and entered the Indian market last year by picking up a controlling stake in ItzCash for $800 million.

Nasdaq-listed Ebix, Inc. today said that it plans to acquire the international remittance business of Indian company Transcorp International Ltd for $7.4 million to further strengthen its position in the financial exchanges market in India.

The acquisition, to be done through internal accruals, is subjected to approvals and is expected to reflect on Ebix earnings immediately.

Ebix is a US-based supplier of on-demand software and e-commerce services to the insurance, financial, e-governance and healthcare industries, and entered the Indian market last year by picking up a controlling stake in ItzCash for $800 million.

Robin Raina, Ebix Chairman, President and CEO, said: “Following up on other MTSS assets acquisitions in the last few months, the acquisition of Transcorp International MTSS assets is a logical step forward in our efforts to expand our presence in the financial exchange markets in India.”

He further added that the Transcorp acquisition will help establish EbixCash as an “undisputed market leader” in the inward international remittance exchange business.

EbixCash operations

With a market share of almost 10 per cent of Western Union's inward remittance flows in India, Transcorp International is one of the top five international remittance players in India.

This is Ebix’s fourth remittance-related acquisition globally and intends to consolidate all these acquisitions into its EbixCash Financial Exchange operations bringing significant synergies and redundancies to the combined operation.

EbixCash claims to be the largest domestic remittance exchange in India with domestic remittance volume of approximately $100 million per month.

It also has a sizeable marketshare in prepaid cards, domestic remittances and bill payments, processing with approximately 600,000 transactions per day and approximately $2 billion in annual payment volume.

EbixCash through its travel portal Via.com is also one of South-East Asia’s leading travel exchanges with over 110,000 distribution outlets and 8,000 corporate clients, processing over 24.5 million transactions every year, the company added.