(Image source: Miles Software homepage.)
Ebix, Inc. (Atlanta), a supplier of on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries, has announced that one of its Indian subsidiaries has signed an agreement to acquire Mumbai based Miles Software for an amount of approximately $19 million, with an additional contingent earn out of up to $8.5 million payable after 2 years.
Ebix describes Miles as India’s leading wealth and asset management on-demand software provider to banks, asset managers and wealth management firms. Miles also has over 300 financial service customers across 18 different countries in Europe, Middle East and South-East Asia, according to Ebix’s announcement. The company’s on-demand solutions span the areas of wealth, portfolio, asset, custody, collateral and loan management, and also include enterprise cloud based investment management and investment compliance solutions. Miles Software’s flagship product MoneyWare, has been ranked #1 Global Private Banking Solution player for the third consecutive year by IBS Intelligence, UK in 2018 based on sales clocked globally in the year.
While being tightly integrated into Ebix’s on-demand software offerings globally, Miles Software will serve as Ebix’s Investment, Wealth and Asset Management Division with its products being interfaced across both EbixCash financial exchanges and EbixExchange insurance exchanges, Ebix reports. All key Miles business executives have been retained by Ebix with the Miles Founder Milan Ganatra and his team being entrusted with leading Ebix’s global efforts in these niche competence areas. Ganatra will be also become a key member of the EbixCash senior leadership team in India, to have an enhanced focus on the global fast-growing wealth and asset management industry.
In the financial year 2017, Miles had revenues of $8 million and EBITDA of approximately 8 percent. Ebix believes that the business can continue to grow at the rate of 20 percent plus annually with operating margins of 30 percent or more, once fully integrated. Ebix expects the acquisition to be immediately accretive to its earnings and forecasts 8 cents in increased Diluted EPS, once the acquisition is fully integrated over the next 6 months. Ebix funded the acquisition using its internal cash reserves and did not use any investment bankers for the transaction. Aarayaa Advisory Services served as the exclusive financial advisors to Miles Software.
“We are immensely pleased to have become a part of a Company with an extremely rich domain focus and a who’s who financial institution client base,” comments Ganatra. “Ebix today is the only on-demand Exchange in the world that aspires to bring true convergence between financial, insurance, asset management, lending and wealth management. With over 7,500 employees servicing clients in India, Ebix offers us expansion possibilities that are truly exciting. Ebix’s expanse across the world and more specifically in North America, Australia, UK and Brazil has the potential of opening up immense new opportunities for our products, as we interface them to Ebix CRM and other Exchange solutions in these markets.”
“We strongly believe that there is great synergy and mutual shared DNA between Ebix and Miles’s focus on globalization, domain focus and the culture of innovation and excellence,” Ganatra adds. “I am confident that the Miles team has the talent and ability to take Ebix to even greater heights.”
Complementing Ebix’s Existing Offerings
Miles’s wealth management, asset management, collateral based lending management and custody businesses complement Ebix’s existing offerings to financial institutions, Banks, asset managers and wealth managers across the world, according to Robin Raina, chairman, president and CEO, Ebix. “It also opens up cross selling opportunities for Ebix solutions to Miles’s customer base in 18 countries,” Raina says. “The addition of Miles to our EbixCash portfolio not only makes our financial exchange offering even more comprehensive, but also provides us with a senior management team that is proven and highly respected in the industry. I look forward to working with Milan in helping him expand the Miles footprint to United States, Australia and Brazil, while utilizing our domain focused sales and relationship oriented folks in these markets.”