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Nasdaq-listed Ebix, Inc. today said it plans to acquire the Money Transfer Service Scheme (MTSS) business of Indian company Transcorp International Ltd for $7.4 million through internal accruals. The acquisition, subjected to approvals, is expected to be accretive to Ebix earnings immediately.
Ebix, a supplier of on-demand software and e-commerce services to the insurance, financial, e-governance and healthcare industries, plans to make this acquisition through its Indian subsidiary, the company said in a statement.
Ebix Chairman, President and CEO, Robin Raina said: “Following up on other MTSS assets acquisitions in the last few months, the acquisition of Transcorp International MTSS assets is a logical step forward in our effort to expand our presence in the financial exchange markets in India.”
Ebix entered the Indian market in the middle of last year with the acquisition of fintech company ItzCash for about $800 million. He further added that the Transcorp acquisition will help establish EbixCash as an undisputed market leader in the inward international remittance exchange business.
With a market share of almost 10 per cent of Western Union's inward remittance flows in India, Transcorp International was one of the top five largest international remittance (MTSS) players in India.
This is Ebix’s fourth remittance related acquisition, following the announcement of the acquisition of YouFirst Money Express Pvt Ltd and the asset purchases of Paul Merchants Ltd and Wall Street Finance Ltd. Ebix intends to consolidate all these acquisitions into its EbixCash Financial Exchange operations, bringing significant synergies and redundancies to the combined operation.
The acquisition of the MTSS Business, which controls the fifth largest share of the market, would further strengthen Ebix’s emerging leadership position in the financial exchange markets in India.
The addition of Transcorp International MTSS assets following its acquisition of leading travel exchange Via.com, will increase the EbixCash Financial Exchange expanse to 231,500 physical distribution outlets, with an omni-channel online digital platform that encompasses leadership in money remittance (domestic & international), travel, pre-paid & gift cards and utility payments. In addition, Ebix’s recent joint venture initiative with Bombay Stock Exchange positions it strongly in India’s insurance sector.
EbixCash is already the largest domestic remittance exchange in India with domestic remittance volume of approximately $100 million every month. It is also a recognised leader in pre-paid cards, domestic remittances and bill payments, processing approximately 600,000 transactions daily and approximately $2 billion in annual payment volume. EbixCash, through its travel portal Via.com, is also one of South-East Asia’s leading travel exchanges with over 1,10,000 distribution outlets and 8,000 corporate clients, processing over 24.5 million transactions every year.
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