Ebix Inc., (EBIX) announced that it agreed to be acquired by an affiliate of Goldman, Sachs & Co. in a transaction valued at about $820 million, including the assumption of any outstanding debt.
As per the terms of the agreement, Ebix shareholders will receive $20.00 per share in cash. This represents a premium of about 18% over Ebix's average daily closing price over the preceding 30 days.
The board of directors of Ebix has approved the merger agreement and has resolved to recommend that Ebix shareholders approve the transaction.
The company said that Robin Raina and the Rennes Fondation, which together own approximately 19% of the outstanding common shares, have entered into separate voting agreements under which they have agreed, subject to certain exceptions, to vote their respective shares in favor of the proposed transaction. Robin Raina and the Rennes Fondation will continue to be meaningful equity investors in Ebix.
The merger agreement contains a "go-shop" provision under which Ebix may solicit alternative proposals from third parties during the next 45 calendar days on customary terms and conditions for transactions of this nature.
The proposed transaction is subject to antitrust approvals, shareholder approval and other customary closing conditions. The transaction is not conditioned upon financing.
The transaction is expected to close in the third quarter of 2013. At that time, Ebix will become a private company and its shares will no longer be listed on any public exchange.
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