By Lisa Kerner
Charlotte, N.C., Nov. 10 - Ebix, Inc. agreed to acquire ConfirmNet Corp. for an undisclosed sum in a transaction expected to close Nov. 22.
According to Ebix, the transaction involves cash payments to ConfirmNet shareholders plus a number of earn-out cash payments based on revenue achieved in the fourth quarter of 2008 as well as in the full year of 2009.
Total payments due until January are estimated to be in the range of $10 million to $11 million, an Ebix news release said.
Ebix will fund the purchase of ConfirmNet using its own cash reserves.
"The acquisition of ConfirmNet is another step towards establishing Ebix as a leading business process outsourcing provider in the insurance industry," Ebix chairman, president and chief executive officer Robin Raina said in the release.
"We intend to immediately integrate ConfirmNet into our existing Ebix BPO division."
ConfirmNet, based in San Diego, has the second-largest market share in the certificate tracking industry. The company offers ASP software on a software-as-a-service basis for issuing and tracking certificates of insurance.
Atlanta-based Ebix develops software and e-commerce solutions for the insurance industry.
| Acquirer: | Ebix, Inc.
|
| Target: | ConfirmNet Corp.
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| Announcement date: | Nov. 10
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| Expected closing: | Nov. 22
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