EbixCash World Money, the Indian unit of software and e-commerce services provider Ebix, has agreed to purchase a 74.84% controlling stake in local remittance player Weizmann Forex.
Weizmann provides foreign exchange, outward and inward money remittance as well as travel insurance products.
Additionally, EbixCash made a public offer to buy the balance Weizmann stake for INR528 ($7.54) a share.
Under the agreement, Weizmann will be merged into the EbixCash Financial Exchange operations in India and abroad.
Weizmann executives joining the combined EbixCash remittance and forex leadership team will be led by EbixCash managing director TC Guruprasad.
The addition of Weizmann bolsters the presence of EbixCash Financial Exchange to 320,000 physical distribution outlets from 260,000.
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The deal also expands EbixCash’s footprint to 32 international airports in India from the existing 25.
Ebix chairman, president and CEO Robin Raina said: “Weizmann has one of the largest financial exchange footprints in India, especially with a large number of banks servicing their transactions through their network.
“We are excited to bring this vast network into the EbixCash Financial exchange network. The synergies between Weizmann and EbixCash were compelling making this a natural decision for us.”
Ebix will finance the deal in cash using its existing liquidity. It expects the transaction to be immediately accretive to its earnings.