Ebix Inc, the parent of major local insurance technology company Ebix Australia, has agreed to be acquired by an affiliate of US investment bank Goldman Sachs. 

The transaction, revealed overnight in the US, is valued at about $US820 million ($797.5 million).

Ebix Australia is the local industry’s largest technology company, operating such key services as the dominant Sunrise Exchange transaction platform, broker system WinBEAT and the iClose operating system.

MD Leon d’Apice, who is overseas, told insuranceNEWS.com.au this morning that the acquisition will have no impact on the local company’s operations.

“It’s 100% business as usual,” he said. “It will have zero operational impact on the company here and overseas.”

Mr d’Apice says additional information will be circulated to Ebix Australia clients.

Under the terms of the agreement, Ebix shareholders will receive $US20 ($19.45) per share in cash, representing a premium of approximately 18% over the company’s average daily closing share price over the preceding 30 days.

Chairman, President and CEO Robin Raina said in a statement that the merger agreement follows board discussions over “a number of potential alternatives”.

“The Ebix board, acting on the recommendation of a special committee comprised entirely of independent directors, unanimously approved this transaction, which provides significant and immediate value to shareholders,” he said.

“With our market-leading servicing platforms and talented team of insurance and technology professionals, Ebix will be well-positioned as a private company to continue to execute on our strategic initiatives and pursue growth opportunities around the world.”       

The acquisition agreement includes a provision under which Ebix can actively solicit alternative proposals from third parties during the next 45 days, and is subject to regulatory approval.

More details in our regular Monday bulletin.