Ebix extends $0.85-per-share offer for Healthaxis to Dec. 31

By Lisa Kerner

Charlotte, N.C., Nov. 19 - Ebix, Inc. said it extended the validity of its $0.85-per-share offer for Healthaxis, Inc. to Dec. 31.

The company outlined the extension and other key points in a letter to the company on Wednesday, according to an Ebix news release.

It was previously reported that Ebix would hold its offer open until Nov. 10. The offer would then decline to $0.75 per share on Nov. 11, $0.65 on Dec. 1 and $0.55 on Dec. 31.

Ebix said it would pay the per-share offer price in the form of equivalent Ebix stock.

The company will allow existing Healthaxis warrant holders to convert into Ebix stock, once Ebix stock price increases proportionately by the same percentage margin.

In addition, Ebix proposed paying the increased termination fee of $1 million to BPO Management Services, Inc. if Healthaxis shareholders approve the Ebix proposal.

Healthaxis' board of directors already rejected the $0.85-per-share offer as well as an earlier $0.77-per-share offer by Ebix.

According to Healthaxis, the offer was not reasonably likely to lead to an offer superior to the proposed merger of Healthaxis with BPO.

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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