In back-to-back deals, US-based software and ecommerce service firm Ebix, Inc has formed a joint venture with Vara Technologies and agreed to invest an undisclosed amount in Kanoria Foundation’s IT services firm in return for a 50% stake.
“Vara and Ebix executed a partnership agreement wherein Ebix agreed to infuse capital in Vara Tech and its subsidiary Vara United Pvt Ltd through subscription of newly issued shares, enabling Ebix to hold 50% stake, on the closing of the transaction. Ebix has valued Vara’s enterprise value at approximately $46 million,” Ebix said in a statement.
Vara provides IT and BPO services to Indian financial entities. It has an annual revenue run rate of around $31 million and 3,300 employees.
“The relationship with Vara represents a significant opportunity to expand our presence in the banking and financial services space in India which is one of the leading high growth economies globally,” said Robin Raina, chairman and CEO of Ebix Group.
Ebix has been on a fast-paced inorganic expansion drive in India’s financial services space ever since it picked 80% stake in digital payment firm ItzCash for $120 million.
It bought international remittance business of Paul Merchant’s, YouFirst Money and Wall Street Finance’s subsidiaries. Recently, Ebix acquired online-offline travel agency Via.com. The deal with Vara will help Ebix expand its presence to the IT and BPO services catering to the banking, financial services and insurance sectors.
“Our partnership with Ebix will help us in achieving the goal of becoming a leading technology player in banking and financial services,” said Sujit Kanoria, director, Vara.
Vara is part of HP Kanoria-led business group which has companies including Srei Infrastructure and Srei Financial Services among its group companies.