Ebix completes Chapter 11 restructuring and consolidates with Eraaya

Ebix Inc., a provider of on-demand software and e-commerce solutions for industries including insurance, finance, healthcare, and e-learning, has announced that it has successfully completed its Chapter 11 restructuring.

The company has emerged with improved financial and operational strength, now operating with over 12,000 employees and free of debt worldwide.

On August 30, 2024, Ebix completed its Chapter 11 process in a remarkably short time frame of less than nine months. The restructuring plan, which received court approval on August 2, 2024, was lauded for its execution.

The intricate international case was handled by Sidley attorneys from various locations, including New York, London, Singapore, and Hong Kong, along with specialists from several global accounting and investment banking firms.

Ebix’s Chapter 11 filing was triggered by the sudden call of non-operating loans, despite the company having a trailing 12-month EBITDA of $145 million and a long track record of profitability, including a peak return for shareholders of 27,500%. With its financial challenges now behind it, Ebix is poised with renewed optimism for the future.

Ebix CEO and Chairman, Robin Raina, commented: “Today marks a significant milestone in Ebix’s 48-year history. Through the relentless efforts of our team of advisors and employees worldwide, we are moving forward in an incredibly strong market position with an exciting road ahead of us.

“Now with a solid financial foundation, a leaner, more efficient operating model, and plans to raise more liquidity to invest in our business, Ebix has outstanding potential to drive long-term profitable growth. Both in the US and around the world, we are poised to capitalize on our industry leadership, deep operational expertise and our iconic global brand.”

With Eraaya LifeSpaces Limited emerging as the successful plan sponsor, Ebix Inc. will now be consolidated into Eraaya, a company listed on the Bombay Stock Exchange.

Despite this consolidation, Ebix will remain a US-domiciled company, adhering to the laws and regulations of the countries in which it operates.

Eraaya’s investment will not adversely affect Ebix’s obligations or operations in any region, ensuring that the company continues its business as usual.

Raina will continue in his roles as CEO and Chairman, and has been instrumental in driving Ebix’s global success, including multiple appearances on Fortune’s 100 Fastest Growing Companies list.

Raina added: “Ebix 2.0 intends to be lean, efficient, and focused on consistent profitable growth. We are aware that our strength is our focus on pioneering world leading on-Demand software Exchanges, our distribution reach, our understanding of worldwide regulations, our dominance in various sectors in specific geographies and the barriers to entry in the highly regulated sectors that we operate in. We intend to leverage all these strengths while continuing to deliver world-class services to our clients worldwide.”

With a notable 23-year record of profitability and a peak shareholder return of over 275 times, Raina exemplifies steady financial management and strategic vision.

To maximise shareholder returns for Eraaya and ensure world-class compliance, growth, and profitability, Raina has also been appointed Chairman of the Board for Eraaya. This move aims to align leadership and strategy across both Ebix and Eraaya, reinforcing the integrated vision for the future.

Ebix, Inc. will maintain its status as a US company, ensuring uninterrupted service and high-quality products to its extensive client base in the United States.

This includes state governments, 80 Fortune 500 companies, medical institutions, and numerous insurance entities. All US contracts, including tax ID, workers’ compensation, and client agreements, will remain unchanged and continue to be managed in accordance with US law.

Ebix’s international operations, which serve clients in over 75 countries, will continue without interruption. The company’s senior international management team, responsible for driving growth and profitability over the past two decades, will remain in place. All international client agreements will be honored as per existing contracts and local laws, with the same Ebix personnel maintaining their current roles.

Ebix’s Indian EbixCash operations will proceed as usual, supported by a “Phygital” strategy that integrates over 650,000 physical distribution outlets across India and Southeast Asia with an omnichannel digital platform.

EbixCash’s diverse portfolio includes domestic and international money remittance, foreign exchange (Forex), travel services, prepaid gift cards, utility payments, lending, and wealth management.

Notable operations include 82 retail branches, kiosks in 28 airports, 12 seaports, and extensive networks with franchise partners and corporate clients.

EbixCash also excels in travel through Via and Mercury, and its financial technologies business supports banks and wealth management companies across over 75 countries.

Additionally, EbixCash’s Bus Exchange offers IT solutions for state roadways and numerous buses, while its BPO services deliver IT and call center support across various industries.

Ebix has now achieved a debt-free status globally. They have a clean balance sheet and an 85% recurring revenue base, alongside a 23-year history of consistent profitability and positive cash flows. The company is well-positioned to focus on strong EBITDA and cash flow performance moving forward.

As a truly international entity with a diverse investor base, Ebix continues to secure international support for its expansion and acquisition strategies.

The company has already attracted investments from prominent US investors, such as Watch Hill Capital and Melanie Lane Partner Series. Eraaya and Ebix aim to further expand their international investor base, supporting their growth and diversification objectives.

Raina said: “I am quite confident that this is only the beginning phase of delivering even greater value to our stakeholders. Thank you to the Ebix team around the world and to our new investor group, and to our customers, franchisees, providers and partners for your confidence and support during this process.

“I must add that as the Eraaya Chairman, I am equally committed to delivering consistent profitability, growth and shareholder return to the Eraaya investor base also.”

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