Nasdaq’s Ebix has stated that they are going to buy Centrum which is based in Mumbai. They are going to pay $200 million for the business and this is from multiple sources who have direct access to the organisation. The deal, which is yet to have an official announcement is said to come as early as Monday. This will be the 8th acquisition in India from the US insurance company and this is in the last year alone. As technology continues to advance, the strategic investors are continuing to show interest.
Ebix are going to take over the entire business and this includes the Centrum staff. The deal has apparently been signed and after the deal, Centrum are expected to focus more on the lending operations. They are also making a very aggressive play for the NBFC business. This is ever since the ex-standard chartered banker known as Jaspal Bindra joined the company. He has served as chairman since April 2016.
Centrum has said that the entire thing is speculation and they have not commented any further. Robin Raina who is the Ebix chief executive has said that she is not aware of any deal that has been made, however this could be to try and keep the deal under wraps until they are ready to make the full announcement.
The transaction will help to provide Jacob Ballas Capital with an exit deal and they invested over $50 million so that they could have a 30% stake in the company last year. Centrum are known for dealing in the foreign exchange service and they also take care of things such as prepaid travel cards, remittances and even traveller’s cheques as well. They serve over 1 million Forex transactions and they currently have an influence in over 46 cities. The company are the largest Forex airport provider in the country of India as well.
The sale will really give Centrum the large base that they need to grow their business and it will also help them in the realm of housing finance, SME and even microfinance as well. It is also going to help them with their inorganic growth opportunities. In 2017, they went on to acquire the complete microfinance portfolio from a company known as FirstRand Bank India.
Centrum is also very established when it comes to investing, insurance distribution and even institutional broking. Ebix is based in Atlanta and they are an international supplier of on-demand infrastructure changes to healthcare industries and financial institutions. They have made a total of 7 acquisitions in one year and they are working aggressively to try and get into the world of digital financing. In May of last year, they also acquired ItzCash from a large group of investors. This included the Essel Group. The total price of this came to $125 million.
The company worked to start consolidating the remittance space by purchasing Wall Street Finance. They did this in August at a total price of $7 million. They then went on to buy YouFirst Money Express which is another remittance entity. It is said that this was for an undisclosed amount. The company has a $100 million kitty that is designed for consolidation in payment spaces, so that they can then go and set up a financial exchange in India.
They have more than 50 offices so far, and this is across New Zealand, Singapore, the UK, US and even Canada. Ebix currently powers a huge range of exchanges around the world and this includes property, casualty, health and even finance insurance as well.