Ebix Australia has confirmed its operations will continue unchanged following Eraaya Lifespaces’ acquisition of its US parent through a chapter 11 restructuring plan that took effect last week.

Ebix Inc’s worldwide results will be consolidated into Delhi-based Eraaya, which trades on India’s BSE sharemarket, while Ebix Australia will continue to be a locally domiciled company.

“All client contracts will continue to be serviced from Ebix Australia with no changes to the client engagements and agreements that will continue to be serviced following local law as usual,” the business said yesterday.

Senior management, led by Leon D’Apice, will continue to helm Ebix Australia after driving growth and profitability in the country for more than two decades, it says.

A consortium led by Eraaya and including Vikras Lifecare and Vitasta Software India made an offer for Ebix Inc in a process that started when the US group filed for protection under chapter 11 of the bankruptcy code last December. The acquiring consortium put the Ebix enterprise value at $US361 million ($538 million).

The US Bankruptcy Court for the Northern District of Texas confirmed the Ebix restructuring plans early last month and it exited chapter 11 free of debt on August 30.  

Ebix founder Robin Raina is continuing as the global CEO and chairman and has been appointed Eraaya chairman, with the goal of maximising shareholder returns and delivering “world-class compliance and consistent growth and profitability”.

“Now with a solid financial foundation, a leaner, more efficient operating model, and plans to raise more liquidity to invest in our business, Ebix has outstanding potential to drive long-term profitable growth,” Mr Raina said. “Both in the US and around the world, we are poised to capitalise on our industry leadership, deep operational expertise and our iconic global brand.”

The software and e-commerce group said it had a trailing 12-month earnings before interest, tax, depreciation and amortisation of about $US145 million ($216 million) when it entered chapter 11 in December as non-operating loans were called by lenders.

“Ebix’s entry into chapter 11 on non-operating grounds was sudden and rather unexpected,” the group said. “Today, when Ebix has exited chapter 11, it has reason to feel confident about its future on various grounds.”

The company, which has more than 12,000 employees worldwide, says Eraaya’s investment will not adversely affect its responsibilities in any geography, as the company will continue to operate as usual.

Eraaya vice chairman Vikas Garg says the group is “immensely proud to complete this pivotal acquisition, marking a significant milestone in its journey. We are excited to welcome Ebix Inc onto our dynamic and driven portfolio.”

Ebix has about 200 offices globally and offers on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries. The Ebix Australia suite includes Ebix Evolution, OneOffice, Sunrise Exchange and WinBEAT.