Ebix Inc., a software developer and provider of e-commerce services to the insurance industry, has acquired Virginia-based software technology company Finetre Corp. via a merger earlier this month.
The deal guarantees Finetre shareholders upfront cash payments of $13 million and a potential $3 million in additional cash payments spread over two years, provided both firms meet specific revenue and net income targets. Ebix revealed it intends to fund the transaction through a combination of internal sources and $12 million credit line obtained recently from LaSalle Bank. No Ebix stock shares were issued in the transaction.
“We are especially pleased that the acquisition provides us with a cohesive management team and an employee base that has delivered consistently and brings specialized annuity expertise to Ebix,” said Robin Raina, Ebix’s chairman, president and chief executive officer. “We intend to support the present Finetre management team and enable it to accelerate its efforts to increase its market presence in the annuity and life insurance exchange market places.”
The Atlanta-based firm also gained AnnuityNet, an annuity exchange servicing approximately $15 billion in annuity premiums each year over the Internet. The company disclosed future plans to merge Finetre with EbixLife.