Demand for new products from insurance technology specialist Ebix Australia continues to grow, with MD Leon d’Apice saying the business is also on the lookout for acquisition opportunities in Australia.

He says the company has recorded a solid performance in the past year that reflects increasing demand for its products and services, including mobile offerings introduced last year.

“We have just released a fourth broking system, Ebix Evolution, and we see that as having a lot of appeal to the corporate broking sector,” Mr d’Apice told insuranceNEWS.com.au.

Ebix operates Sunrise Exchange, the Australian industry’s largest insurance trading platform, and its broker management systems dominate the market.

Mr d’Apice’s comments came after Robin Raina, the Chairman, President and CEO of the global Ebix operation, announced a rise in second-quarter profit and said he expects acquisitions to further lift earnings.

Net profit grew 21% to $US23 million ($29 million) in the three months to June 30, while revenue at the US-based company increased 12% to $US72.6 million ($92.3 million).

Mr Raina says Ebix has a large pipeline of growth prospects and is also considering new opportunities.

“To further leverage our leadership position, we are pursuing a number of acquisitions in various geographies, including our disclosed discussions with Patriot National,” he said.

Technology provider Patriot National said earlier this month it has received an improved offer from Ebix to acquire the company for a total enterprise value of $US475 million ($604 million). 

“If consummated, we believe the Patriot transaction could be a transformational event for Ebix in terms of adding scale, capabilities, expertise and customers,” Mr Raina said.

The deal could be highly accretive to both earnings per share and cash generation, he says.

The company expects to complete due diligence on Patriot National by the end of the month and will then update the market.