US-based software company Ebix has agreed to acquire CentrumDirect (CDL), a foreign exchange and outward remittance provider based in India, in a deal worth around $175m.
CDL serves niche sectors such as leisure travel, corporate travel, overseas education related remittances, airport money exchange, tour cost remittances of travel agents, disbursement of crew wages to ships docked on Indian shores, immigration related remittance, retail and wholesale currency markets. The business has 165 outlets in 55 Indian cities.
Ebix plans to finance the deal in cash through its existing bank line and internal cash reserves. However, it also has the provision to opt for paying up to $60m in stock.
As part of the deal, CDL assets and executives will become part of Ebix’s Financial Exchange EbixCash.
The deal already secured the nod of the Centrum board, and is currently pending shareholder and regulatory approvals.
Ebix chairman, president and CEO Robin Raina said: “The acquisition of CDL provides us with new abilities in niche financial exchange sectors while expanding our footprint in India and establishing our EbixCash Financial Exchange as the largest Financial exchange in the country.
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“We have been eager to build a strong footprint in India’s airports and shipping ports, as their high levels of customer traffic provide recurring sources of revenue and income for any Financial Exchange.
“With a long-term presence in 24 international airports, and a few others to be deployed this year, the addition of CDL will substantially extend EbixCash’s branding and leadership position in India’s Financial exchange markets.”
“We intend to integrate this team into our EbixCash senior leadership, with the goal of having everyone at EbixCash focused on maximising cross-selling of EbixCash products and services,” Raina added.
The latest acquisition comes shortly after Ebix’s acquisition of the inward international remittance business of India-based Transcorp International.