Ebix of US buys 80 per cent in Itzcash for $150 millionhttps://indianexpress.com/article/business/companies/ebix-of-us-buys-80-per-cent-in-itzcash-for-150-million-4672482/

Ebix of US buys 80 per cent in Itzcash for $150 million

Under the terms of the agreement, ItzCash was valued at a total enterprise value of approximately $150 million.

Nasdaq-listed insurance software solutions firm Ebix Inc has acquired an 80 per cent stake in digital payment company Itzcash at an estimated total cost of $150 million (around Rs 970 crore).

Under the terms of the agreement, ItzCash was valued at a total enterprise value of approximately $150 million. Accordingly, Atlanta-based Ebix acquired an 80 per cent stake in ItzCash for $120 million (Rs 775 crore) including upfront cash of $76 million and a contingent earn out of up to $44 million payable over a period of 3 years from closing. The closing date of the transaction was May 23, 2017. The company funded the transaction using internal cash reserves from its Indian and Singapore subsidiaries.

The Essel Group, the original promoter of the company, will hold 20 per cent in the company after the deal. Financial investors including Matrix Partners, Lightspeed Venture Partners and Intel Capital exited from their investments and there was also issue of fresh equity to Ebix.

ItzCash processes approximately 600,000 transactions per day and approximately $2 billion in annual payment volume, with an industry leading transaction success rate of 99 per cent.

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ItzCash is a leader in the prepaid cards and bill payments space in India, besides being the only profitable payments solutions provider out of all its peers, while having grown at the rate of 35 per cent over the last 3 years.

“ItzCash is a financial exchange for payment solutions that connects 75 million plus consumers and 1,500 corporate partners on its integrated payments solutions superhighway. With an Omni-channel strategy that encompasses a distribution network of 75,000 plus physical retail outlets..,” Ebix said in a statement.

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