An Indian subsidiary of Ebix Inc. has agreed to acquire Miles Software Solutions (P) Ltd., a Mumbai-based wealth and asset management on-demand software provider.
The purchase price is approximately $19 million, with an additional contingent earnout of up to $8.5 million payable after two years.
Miles Software has more than 300 financial service customers across 18 different countries in Europe, Middle East and Southeast Asia. It reported revenues of $8 million in 2017.
The deal is expected to be immediately accretive to Ebix's earnings and is projected to increase its EPS by 8 cents, once integration is fully completed over the next six months. Ebix expects Miles Software to continue to grow at an annual rate of over 20%, with operating margins of 30% or more.
Ebix funded the acquisition using internal cash reserves and did not engage any investment bankers.
Aarayaa Advisory Services served as the exclusive financial adviser to Miles Software.