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Ebix Agrees to Buy Transaction-processing Firm Finetre

Ebix, Inc., a developer and supplier of software and e-commerce solutions to the insurance industry, has signed an agreement to acquire Finetre Corporation through a merger. The closing is expected

By Staff Writer | Updated on September 26, 2006

Ebix, Inc., a developer and supplier of software and e-commerce solutions to the insurance industry, has signed an agreement to acquire Finetre Corporation through a merger. The closing is expected to occur on Oct. 2. Finetre is an ASP software technology firm focusing on transaction processing and compliance automation in the financial services industry. The acquisition gives Ebix an annuity exchange, AnnuityNet, which services approximately $15 billion in annuity premiums each year over the Internet, and adds to Ebix’s position as an exchange for life insurance sales illustrations through its EbixLife subsidiary.

The deal will involve upfront cash payments of $13 million to Finetre shareholders, according to Ebix, plus a potential earn-out cash payment of up to $3 million spread over two years if specific revenue and net income targets of the Finetre division of Ebix are achieved. Ebix intends to fund this transaction through a combination of internal sources and a recently signed $12 million credit line with LaSalle Bank. No Ebix shares will be issued in the transaction.

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