A consortium led by Eraaya Lifespaces will acquire Ebix Inc, including its worldwide subsidiaries, after the US group filed for protection under chapter 11 of the Bankruptcy Code last December.

Law firm Sidley Austin, acting as counsel for Ebix, says the consortium – which also includes Vikras Lifecare and Vitasta Software India – is paying $US145 million ($216 million), with deal completion scheduled for August 31.

Ebix Australia MD Leon d’Apice told insuranceNEWS.com.au the move is positive, management remains the same and there will be no change to the local business, which has continued as usual.

“The Australian operation remains profitable and strong,” he said today. “We have a very successful business model here.”

Ebix Inc filed for protection under chapter 11 on December 17 and sold its North American life and annuity assets to Zinnia Corporate Holdings in a deal that closed on April 1.

The Eraaya consortium’s bid for other Ebix assets was accepted at the end of June following an auction overseen by the US Bankruptcy Court for the Northern District of Texas.  

Consortium acquisition terms were supported by Ebix’s senior management team led by the CEO, Eraaya says, and the Texas court confirmed the finalised plan on August 2.

“Eraaya Lifespaces Limited is thrilled to announce that the ... agreement to acquire Ebix Inc has successfully gone through the process of the final approval at the bankruptcy courts,” the company said in a release to India’s BSE stock exchange after the hearing.

Last week, Delhi-based Eraaya said it had completed a qualified institutional placement to fund final payments for Ebix, which has an ascribed enterprise value of $US361 million ($538 million).

Ebix provides software and e-commerce services to the insurance, financial and healthcare industries and has more than 50 offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the US and Britain. Its principal US executive offices are in Johns Creek in Georgia.

Ebix Australia, which last year celebrated three decades of operation, has maintained a strong focus on its core businesses. It has described itself as being “one of the original insurtechs” and at the forefront of technology solutions for the insurance industry since its establishment. Its suite includes Ebix Evolution, OneOffice, Sunrise Exchange and WinBEAT.

US chapter 11 arrangements provide time for a company to reorganise and reduce debt, with the aim of emerging through a court-approved process as a stronger organisation. Ebix global subsidiaries were not included in the December filing, but are part of the equity transaction.

Eraaya, a lifestyle and hospitality company, has said it is looking to expand into new fields that can bring “growth, diversification and sustained relevance in an ever-evolving market”.