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Ebix spends on acquisitions

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Software provider Ebix’s net income dropped 1% to $US70.6 million ($68 million) last year as it made acquisitions around the world.

However, net income grew 8% in the fourth quarter to $US18.7 million ($18 million) compared with the previous corresponding period.

Full-year revenue increased 18% to $US199.4 million ($192.3 million).

“The company’s 2012 results reflect the strength of Ebix’s core businesses, which helped us deliver outstanding results in one of the most challenging years for the insurance industry in a decade,” Chairman, President and CEO Robin Raina said.

“Our revenue, operating cashflow, liquidity and diluted EPS [earnings per share] were all at record levels as we look forward to continued high levels of performance in 2013.”

Ebix Australia MD Leon d’Apice says the results for Australia were positive.

“We have seen strong results across the board in our Australian operations,” he told insuranceNEWS.com.au.

“Ebix has completed the business integration of Fintechnix and is now looking at the technology in the business.”

Mr d’Apice says the Australian operation is continuing to look at acquisitions and expansion.

“There are some interesting projects we are looking at, but it is too early to disclose them,” he says.

Globally, cashflows and access to finance “enabled Ebix to spend $US57.1 million ($55.1 million) on new strategic business acquisitions and investments”, Senior VP and CFO Robert Kerris says.

The company made acquisitions in the US, Australia and Canada and formed Ebix Europe, based in London.

“We were able to make significant strides in building Ebix to be the foremost global provider of exchanges in the insurance industry,” Mr Raina said. “We believe this positions us well for growth in the years ahead.”

The exchange channel continued to be Ebix’s largest, accounting for 80% of last year’s revenue, up from 77% in 2011.

Exchanges revenue was up 22% to $US159.7 million ($154 million). Revenue from broker systems increased 3% to $US18.6 million ($17.9 million) and BPO revenue grew 8% to $US16.1 million ($15.5 million).

Revenue from carrier systems fell 8% to $US4.9 million ($4.7 million).