Ebix Buys Australia Tech Developer

NU Online News Service, June 28, 1:24 p.m.EDT?Ebix, Inc., a software developer and technologyconsultant for insurers, said it has signed an agreement to acquireHeart Consulting Pty, Ltd., based in Melbourne, Australia.[@@]

Under terms of the agreement, Atlanta-based Ebix would acquireHeart for $10.2 million Australian ($7.02 million U.S.). Ebix wouldpay $5.2 million Australian ($3.6 million U.S.) at closing and $2million Australian ($1.4 million U.S.) over a three-year period. Inaddition, Ebix would pay $3 million ($2.1 million U.S.) in sharesof common stock at the time of the closing. The price is based onthe average closing share price over the 30-day period prior to theclosing.

The closing is expected to take place at the beginning ofJuly.

Ebix said the acquisition is expected to add more than 700brokers in Australia to the company's roster of customers, makingit a major player there. The company also intends to retain all ofHeart's Melbourne-based employees.

Leon D'Apice, managing director of Ebix's existing Sydney-basedAustralian subsidiary, was named to head the joint operationsthere.

Heart has provided software and related services to insurancebrokers in Australia for more than 20 years. Its flagshipapplication is WinBEAT, an Application Service Provider system tomore than 3,500 users.