Back to top

Analyst Blog

Earlier this week, The Goldman Sachs Group Inc. (GS - Analyst Report) agreed to buyout Atlanta-based Ebix Inc. (EBIX), an insurance software provider. The cash deal is valued at $820 million, including the outstanding debt of Ebix to be taken over by Goldman.

As per the terms of the agreement, shareholders of Ebix will be paid $20 per share in cash by Goldman. This amounts to a 7.5% premium to the closing price of Ebix’s shares on Apr 30, 2013.

The deal has received the nod from Ebix’s board of directors and awaits shareholders’ approval, following which it is expected to close in the third quarter of 2013. After this, Ebix will transform into a private company and its shares will not be publicly traded.

Notably, the company’s Chief Executive Officer – Robin Raina and Rennes Fondation own 19% of the outstanding common shares of Ebix and have agreed to favor the deal. Moreover, both will remain investors in Ebix.

Further, as per the "go-shop" provision contained in the merger agreement, Ebix may implore other strategic alternatives from third parties in the upcoming 45 calendar days. Therefore, Ebix's special committee is working to find other potential acquisition proposals during this period.

Morgan Stanley & Co. LLC, a subsidiary of Morgan Stanley (MS - Analyst Report) served as the financial advisor to Ebix. Additionally, Credit Suisse AG (CS - Snapshot Report) acted as one of the financial advisors for Goldman.

Ebix is a software and e-Commerce services provider to the insurance and financial industries. Products provided by the company include data exchanges, agency systems, carrier systems and custom software development.

The company has been countering allegations from short-sellers who accused Ebix of furnishing inaccurate financial statements. Though the company denied such accusations, yet its stock price has gone down 37% since the first charge was levied against it in Mar 2011.

Goldman, however, is extremely confident regarding Ebix and believes that the company had no involvement in such malpractices. Therefore, Goldman is contended with the deal and is hopeful of taking Ebix to new heights and maximizing its growth potential.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%