Broker software provider Heart Consulting has been bought by US-owned insurance e-business specialist Ebix. The acquisition values Heart at $10.1 million.

Ebix is a major developer and supplier of software to the global insurance industry. Based in Atlanta, Georgia, it has more than 3000 employees in six countries.

Heart is the largest single supplier of broker software in Australia. Its WinBEAT system is used by more than 700 brokerages and about 3500 individual users. Ebix says the acquisition will give it “a leadership role” in the local market.

Ebix President and CEO Robin Raina says his company will integrate Heart with its existing Sydney operations, based around subsidiary company Delphi Information Systems. All of Heart’s Melbourne-based employees will be retained under the new structure.

Delphi MD Leon d’Apice will head up the joint operations in Australia after the acquisition is finalised on Thursday.

What does this all mean for brokerages using WinBEAT? Not a lot, according, to Mr d’Apice. He told Sunrise Exchange News this morning that it will be “business as usual” for both organisations. All the currently available products – CBS, eGlobal and WinBEAT – will continue to be actively marketed and developed.

“There are a number of organisational and product synergies that make this a very positive move,” he said. “In the longer term we will launch new products and services that enhance the range of solutions available for brokers and underwriting agencies in the Australian marketplace.”

Ebix expects Heart Consulting to achieve revenues of about $3 million in the current financial year, a rise of about 36% on 2002/03, with a before-tax profit of about $1.8 million.

Mr Raina says the acquisition “will provide Ebix with a steady revenue stream from a base of hundreds of agents currently using the ASP-based agency system provided by Heart”. [ASP is a new technology. The abbreviation stands for “application service provider”.]

“Heart is a natural fix for Ebix, since it met all the requirements of our acquisition plan,” he said. “The acquisition fits into our technology vision of providing anytime, anyplace, anywhere ASP technologies to the insurance markets.”

Cross-selling would also be opened up in the exchange of data between different insurance entities and providing insurance company systems, he said.