Ebix Inc., a leading international provider of on-demand software and e-commerce services to the insurance, financial, healthcare, and e-learning industries, today announced its successful emergence from Chapter 11 bankruptcy, now operating as a debt-free company worldwide. The restructuring, completed in a record time of less than nine months, positions Ebix for robust future growth and operational excellence.
On August 30, 2024, Ebix exited Chapter 11, marking a significant milestone in the company’s 48-year history. The U.S. courts had confirmed the restructuring plan on August 2, 2024, praising the involved parties for their exceptional efforts. The restructuring was a complex cross-border effort, with contributions from legal and financial professionals across the United States, the United Kingdom, Singapore, Hong Kong, and other regions.
Key Highlights of Ebix’s Post-Restructuring Plan:
- Consolidation into Eraaya: Ebix Inc. will now consolidate its worldwide results into Eraaya LifeSpaces Limited (“Eraaya”), a publicly traded company on the Bombay Stock Exchange (BSE: ERAAYA). Despite this consolidation, Ebix will remain a U.S. domiciled company, adhering to the laws of the respective countries in which it operates.
- Visionary Leadership Continuity: Robin Raina, the Founder of Ebix and a visionary entrepreneur, will continue to serve as CEO and Chairman of Ebix. Raina has been the driving force behind Ebix’s global success, including a 23-year streak of profitability and a peak shareholder return of 27,500%. Raina has also been appointed Chairman of the Board for Eraaya, further aligning both companies’ strategic goals.
- Focus on Client Commitment: Ebix will continue to operate as a U.S. company, maintaining its commitment to providing world-class products and services to its clients, including state governments, Fortune 500 companies, and numerous insurance and financial entities. There will be no changes to the company’s tax ID, workers’ compensation, or client agreements, all of which will continue under U.S. law.
- Global Operations Stability: Ebix’s international subsidiaries, servicing clients in over 75 countries, will continue to operate without interruption. The senior management team, which has been instrumental in Ebix’s global growth, will remain in place to guide the company through its next phase of expansion.
- Continued Growth of EbixCash: EbixCash, the company’s Indian operations, will maintain its trajectory of growth, leveraging a “Phygital” strategy that integrates physical distribution outlets with a robust online digital platform. EbixCash services encompass a wide array of financial and travel-related products across India and Southeast Asia.
- Debt-Free and Poised for Growth: With a clean balance sheet and a business model generating 85% recurring revenue, Ebix is well-positioned to achieve strong EBITDA and cash flow in the coming years.
- International Investor Support: Ebix continues to secure international investments to support its global expansion and acquisition strategy, with backing from notable U.S. investors such as Watch Hill Capital and Melanie Lane Partner Series.
Robin Raina, CEO and Chairman of Ebix Inc., stated, “Today is a historic day for Ebix as we emerge from Chapter 11 stronger than ever. With a solid financial foundation, a leaner and more efficient operating model, and the backing of our new investors, we are excited about the road ahead. We are committed to leveraging our strengths in on-demand software exchanges, regulatory expertise, and global reach to deliver consistent profitability and growth.”
