The software services provider Ebix Inc. (EBIX) fell -4.03 percent on Monday to $34.01.
The on-demand software and e-commerce services and solutions provider recently acquired a stake in an Indian firm, AssureEdge Global Services through its subsidiary EbixCash. The acquired company has about 1,800 employees, and in a big, promising market, it can provide Ebix with growth.
Ebix has acquired a 70% stake in AssureEdge, a major provider in the Indian market for BPO (business process outsourcing) services. In various regions of the world, the company has six call centers and a wide variety of facilities aimed at performing daily tasks and retaining customers of clients firms. Large telecommunications providers, entertainment and online retail players are included in AssureEdge’s customers list. AssureEdge’s business is expanding, and the company plans to increase its workforce to 2,500 by the end of March 2021. Outsourcing HR management services as well as the last-mile delivery is the main focus of the form. At the same time, the margin is projected to rise next year to 50 percent (currently the EBITDA margin is about 30 percent).
The Johns Creek, Georgia-headquartered Ebix is thus gaining a valuable asset that will ensure its position in India’s fast-growing market for services. This market has not only tremendous potential for human capital, but also an expanding field of information technology. The acquired AssureEdge will be renamed as EbixCash Global BPO services and incorporated into the Ebix ecosystem. The Indian company’s head will maintain his post and a 30 percent stake.
For insurance and financial firms, medical and educational institutions, Ebix has a broad portfolio of services and applications. A positive quarterly report was recently released by Ebix.
Ebix Inc. (EBIX) stock was up 7.90 percent over the past week and has a market capitalization of just over $1 billion.