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Ebix acquires Acclamation Systems
By siliconindia
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Thursday, 07 August 2008, 00:08 IST
Atlanta: Ebix, one of the major developers and suppliers of software and e-commerce solutions to the insurance industry, has announced that it has signed a binding agreement to acquire Acclamation Systems, a provider of SaaS-based healthcare benefits and claims management software. The closing of the transaction is slated to be completed on 1st August 2008.
The deal will involve an upfront cash payment of $22 million to Acclamation shareholders plus a potential earn-out cash payment of up to $3 million paid over a period of 2 years from the date of acquisition provided that specific revenue targets of the Health Benefits division of Ebix are achieved. Ebix funded the acquisition through a mix of convertible debt and internal sources using its own cash reserves.
No financial advisors were involved in the transaction from the Ebix side. Software Equity Group, LLC served as financial advisors to Acclamation for this transaction.
