Healthaxis turns down Ebix offer in favor of deal with BPO Management Services

By Lisa Kerner

Charlotte, N.C., Sept. 25 - Healthaxis Inc. said its board of directors rejected an unsolicited offer by Ebix, Inc. to acquire the company for $3.5 million in cash and $3.3 million in Ebix stock valued at about $100 per share.

According to the board, the terms of Ebix's offer are "substantially inferior" to the terms of Healthaxis' pending transaction with BPO Management Services Inc.

Healthaxis agreed to become the health-care division of BPO Management Services through a reverse merger between the two companies, it was previously reported.

Each share of BPO common stock will be exchanged for 0.3393 shares of Healthaxis common stock.

Shares of BPO preferred stock and other BPO securities will be exchanged for a mix of shares of Healthaxis common stock, preferreds and other securities based on various fixed exchange ratios, a prior BPO news release said.

Healthaxis said it will effect a reverse stock split in connection with the transaction's closing, which is expected during the fourth quarter of 2008.

Based in Anaheim, Calif., BPO is a provider of business process outsourcing services focused on on-demand human resources, information technology, enterprise content management and finance support.

Healthaxis is a provider of health-care payer solutions located in Irving, Texas.

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