Ebix Inc. has agreed to acquire Mumbai-based Miles Software Solutions Pvt. Ltd for about $19 million (Rs 136 crore), as the NASDAQ-listed company shows no sign of slowing its spree of acquisitions in India.
The transaction involves an additional contingent earn-out of up to $8.5 million payable after two years, Ebix said in a statement on Tuesday.
Miles provides wealth and asset management on-demand software to banks, asset managers and wealth management firms. It has more than 300 financial service customers across 18 countries in Europe, the Middle East and Southeast Asia.
In the financial year 2017, Miles had revenue of $8 million and a margin on earnings before interest, tax, depreciation and amortisation of about 8%.
Ebix said it believes the business can continue to grow at the rate of more than 20% annually with operating margins of 30% or more, once fully integrated with the company over the next six months. It expects the acquisition to be immediately add to its earnings.
All key Miles business executives will join Ebix. Miles co-founder Milan ganatra will become a member of the senior leadership team of EbixCash, the company’s inward remittance exchange, in India.
Ebix funded the acquisition using its internal cash reserves and did not use any investment bankers for the transaction. Aarayaa Advisory Services served as the exclusive financial adviser to Miles Software.
The deal is at least the 11th acquisition by Ebix in India over the past two years.
In April, the company said it would acquire a 60% stake in e-learning company Smartclass for $8 million (Rs 52 crore then). Also in April, Ebix struck its biggest India acquisition till date when it bought Centrum Direct Ltd, the foreign exchange services arm of Centrum Capital Ltd, for about $175 million (Rs 1,140 crore).
In another large deal, the company had acquired an 80% stake in ItzCash Card for $120 million (Rs 778 crore) last year.
In an interaction with VCCircle in November last year, Ebix chairman Robin Raina had said that the firm would acquire more companies and that its India revenue could touch $500 million in three years’ time.