US-based software provider Ebix’s sale to Goldman Sachs has fallen through after the bank pulled out over allegations of misconduct.

Ebix Australia MD Leon d’Apice says the takeover, announced last month, would have had no impact on the local market and nothing has changed for Australian clients now it is off.

Goldman Sachs stopped the $US820 million ($888.6 million) purchase after Ebix revealed federal prosecutors were investigating it over claims of intentional misconduct.

Ebix also faces shareholder class actions and reports of an inquiry by the corporate regulator, the Securities and Exchange Commission.

One shareholder action aimed to stop the takeover, claiming the company was being sold too cheaply at $US20 ($21.67) a share.

The share price fell to $US9.52 ($10.31) on Friday after the deal was abandoned. It had traded above $US19 ($20) all month.

The company has since said it will buy back $US100 million ($108.35 million) of stock and that “recent allegations published in the media and elsewhere are without merit”.

Ebix Australia is the local industry’s largest technology company, operating the dominant Sunrise Exchange platform, broker system WinBEAT and the iClose e-commerce transaction platform.