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.
The Company reported that as of October 22, 2010 the total amount of Company’s outstanding short-term convertible debt has been reduced to $10.00 million from the $29.39 million that existed on December 31, 2009.
During the months of September and October 2010 Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited elected to convert $15.0 million of the original $20.00 million of Convertible Promissory notes that were issued on August 26, 2009. With the converts being in the money, the company elected to pay $17.52 million in cash for the principal and part of the conversion gains. The Company also issued 172,887 shares of the Company’s stock for the remainder of the conversion gains.
Ebix President and CEO Robin Raina said, “The Company continues to generate strong cash flows and we are committed to utilizing this cash in any manner that maximizes shareholder value while making our balance sheet look even better. At the time of taking these converts in August 2009, we had contractually decided to settle the principal amount of $25 million in cash. We plan to settle the remaining $10 million of short term convertible debt also in cash when it is exercised before August 2011.”
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.
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