Ebix Buys Australia Tech Developer

Ebix Buys Australia Tech Developer

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

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

The closing is expected to take place at the beginning of July.

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

Leon D'Apice, managing director of Ebix's existing Sydney-based Australian subsidiary, was named to head the joint operations there.

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