Atlanta-based insurance software provider Ebix Inc. said it has signed an agreement to acquire Australia-based telecommunication company Telstra's subsidiary, Telstra eBusiness Services.
Ebix said the deal is expected to be closed on Jan. 2.
Telstra eBusiness Services provides e-business productivity solutions to the general insurance industry in Australia. The core product of the business is Sunrise Exchange, which connects insurers and brokers in order to process general insurance policies electronically. Sunrise Exchange currently processes 4.7 million transactions across 1.4 million policies in Australia, Ebix said.
Ebix noted that the deal will involve a cash payment of $43.4 million on the closing date, funded by a mix of equity sale, convertible debt and a bank credit line.
Telstra said in a statement that it is selling the business because it was not a core business to its network and business applications. The company will continue to provide telecommunication services to Ebix.
Telstra eBusiness employs 44 people primarily based in Sydney, Australia.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.