Ebix, Inc. (“the Company” or “Ebix”) (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, reported today the status of its recently increased share repurchase program and its previously issued convertible debt instruments.
As regarding the Company’s share repurchases, during the 3rd quarter ending September 30, 2010 129,500 shares of Ebix common stock have been repurchased for aggregate consideration in the amount of $2.41 million, representing an average price of $18.65 per share. Year to date during 2010 the Company has repurchased 515,478 shares of common stock for aggregate consideration in the amount of $7.73 million, representing an average price of $15.00 per share. No share repurchases have been made since August 29, 2010.
As regarding the Company’s convertible debt obligations, during the months of September and October 2010 Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited elected to convert $15.00 million of the original $20.00 million of Convertible Promissory notes that were issued on August 26, 2009. Ebix settled these conversion elections by paying $15.00 million in cash with respect to the principal component in addition to paying $2.52 million in cash for a portion of the conversion spread (that being the excess of the conversion value over the related original principal component), and issuing 172,887 shares of the Company’s common stock for the remainder of the conversion spread. As of October 22, 2010 the total amount of Company’s outstanding convertible debt has been reduced to $10.00 million from the $29.39 million that existed at December 31, 2009. The remaining $10.00 million of convertible debt consists of $5.00 million with Whitebox VSC Ltd/IAM Mini-Fund 14 Limited and $5.00 million with the Rennes Foundation.
About Ebix, Inc.
A leading international supplier of On-Demand software and E-commerce services to the insurance industry, Ebix, Inc., (NASDAQ:EBIX) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. Ebix’s focus on quality has enabled it to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model (CMM). Ebix has also earned ISO 9001:2000 certification for both its development and BPO units in India. For more information, visit the Company’s website at www.ebix.com
Safe Harbor for Forward Looking Statements under the Private Securities Litigation Reform Act of 1995 — This press release contains various forward looking statements and information that are based on management's beliefs, as well as assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market and management's plans and objectives. The Company has tried to identify such forward looking statements by use of words such as "expects," "intends," "anticipates," "plans," "believes," "will," "should," and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those expressed in, or implied by, the forward looking statements. Such risks, uncertainties and other factors include the extent to which the Company's new products and services can be successfully developed and marketed, the integration and other risks associated with recent and future acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, the Company's ability to continue to develop new products to effectively address market needs in an industry characterized by rapid technological change, the Company's dependence on the insurance industry (and in particular independent agents), the highly competitive and rapidly changing automation systems market, the Company's ability to effectively protect its applications software and other proprietary information, the Company's ability to attract and retain quality management, and software, technical sales and other personnel, the potential negative impact on the Company's outsourcing business in India from adverse publicity and possible governmental regulation, the risks of disruption of the Company's Internet connections or internal service problems, the possibly adverse effects of a substantial increase in volume of traffic on the Company's website, mainframe and other servers, possible security breaches on the Company's website and the possible effects of insurance regulation on the Company's business. Certain of these, as well as other, risks, uncertainties and other factors, are described in more detail in Ebix’s periodic filings with the Securities and Exchange Commission, including the company’s annual report on form 10-K for the year ended December 31, 2009, included under "Item 1A. Business—Risk Factors." Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors or to publicly update any of the forward looking statements contained herein to reflect future events or developments or changed circumstances or for any other reason.