Ebix clarifies latest $0.85-per-share offer for Healthaxis

By Lisa Kerner

Charlotte, N.C., Oct. 30 - Ebix, Inc. responded to questions from Healthaxis Inc. shareholders about the $0.85-per-share offer it made for Healthaxis on Monday.

According to Ebix, the $0.85 offer is open until Nov. 10. The offer will decline to $0.75 cents on Nov. 11, $0.65 cents on Dec. 1 and $0.55 cents on Dec. 31.

Ebix said the offer will stand withdrawn as of Jan. 1 if not accepted by Healthaxis or extended by Ebix.

Healthaxis' board of directors rejected an earlier $0.77-per-share offer from Ebix in favor of its planned combination with BPO Management Services, Inc.

Regarding its latest offer, Ebix confirmed it would:

• Pay the increased termination fee of $1 million to BPO, if necessary;

• Serve a binding agreement for the acquisition of Healthaxis within seven days of acceptance of the offer; and

• Waive its right to due diligence.

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 Healthaxis news release said.

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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