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Healthaxis, Ebix end merger talks
By Lisa Kerner
Charlotte, N.C., Oct. 23 - Healthaxis Inc. said its board of directors rejected the revised offer by Ebix, Inc. to acquire Healthaxis for $0.77 per share.
According to Healthaxis, the latest offer does not give all Healthaxis common stockholders and other stakeholders the opportunity to receive cash at the closing of the transaction or shortly thereafter.
Healthaxis and Ebix agreed to abandon further discussions, a Healthaxis news release said.
"We had several open and positive discussions with Ebix," Healthaxis chief executive officer John Carradine said in the release. "But in the end, the board could not conclude that the modified Ebix offer was reasonably likely to lead to a superior offer."
Carradine said Healthaxis remains excited about the pending merger transaction with BPO Management Services, Inc.
Enhancements to that proposed transaction will be described in a joint proxy statement Healthaxis expects to file soon.
As previously reported, Healthaxis agreed to become the health-care division of BPO through a reverse merger between the two companies.
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.
Atlanta-based Ebix provides software for the insurance industry.
Healthaxis is a provider of health-care payer solutions located in Irving, Texas.
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.
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