US-based software firm Ebix Inc., which owns payments firm ItzCash, has agreed to acquire money transfer firm Transcorp International Ltd for $7.4 million (Rs 47.15 crore), a company statement said.
The deal is expected to close by 5 March 2018, the statement added.
The acquisition of Transcorp International’s MTSS (money transfer service scheme) will help Ebix expand its presence in the financial markets in India and will also enhance its operating margins, Robin Raina, chairman and chief executive, said in the statement.
This is Ebix’s seventh acquisition in India within two months.
In November last year, it formed a joint venture with Vara Technologies and invested an undisclosed amount in Kanoria Foundation’s IT services firm in return for 50% stake.
In October 2017, Ebix acquired online-offline travel agency Via.com for $74.9 million and in September 2017, it bought BSE-listed Paul Merchants Ltd’s international remittance business for Rs 262.77 crore ($40.7 million).
In August 2017, it acquired the money transfer service scheme (MTSS) business of YouFirst Money Express Pvt. Ltd and also Goldman Securities Ltd, the BSE-listed Wall Street Finance Ltd’s subsidiary, along with its MTSS business, for $7.4 million.
In May 2017, Ebix acquired 80% stake in payments firm ItzCash for $120 million (Rs 778 crore).
Ebix has been on a fast-paced inorganic expansion drive in India’s financial services space ever since its acquisition of ItzCash.
Through that deal, the NASDAQ-listed Ebix joined the likes of Japan’s SoftBank Group Corp and South African technology conglomerate Naspers in entering India, as the digital payments sector witnessed rapid growth after the Indian government banned old high-value currency notes in late 2016.
Transcorp International, which was launched in the early 1980s, has 40 branches across India and claims to have made 1.7 million transactions per annum.