Ebix has announced that its EbixCash World Money subsidiary in India has entered into an agreement to acquire 100 per cent assets of India-based Essel Forex for approximately US$8 million. Ebix will be funding the entire transaction in cash, using its internal cash reserves. The acquisition of Essel Forex following the recent announcement of the Weizmann acquisition, further strengthens EbixCash’s position as the largest financial exchange in India, besides being the undisputed leader in the inward remittance, outward remittance and foreign exchange markets in India.
With a national network of 44 branches in 31 cities serviced by 400+ employees, Essel Forex has been one of the five largest foreign exchange providers in India with a wide spectrum of related products including sales of all major currencies, travellers’ checks, demand drafts, remittances, money transfers and prepaid cards primarily for the Corporate clients. Besides being a foreign exchange business partner to leading banks such as ICICI, Axis, Indus Ind, Yes and HDFC Bank, Essel Forex has been associated with Western Union and MoneyGram for inward money transfers.
Essel Forex will be tightly integrated into the EbixCash Financial Exchange offering in India and abroad. The retained Essel Forex executives will become an integral part of the combined EbixCash remittance and forex leadership team headed by EbixCash World Money Managing Director TC Guruprasad. Ebix believes the Essel Forex business can generate operating margins of 40% or more, once fully integrated. Ebix expects the acquisition to be immediately accretive to its earnings. Robin Raina, Chairman, President and CEO, Ebix said, “Essel Forex has a rich focus on the corporate clientele with strong partnerships with many leading banks. Their geographical, product and client overlap with EbixCash made the synergies rather compelling. We remain committed to establishing the Indian sub-continent’s largest financial exchange and this is another step in that direction.”
EbixCash World Money subsidiary in India acquired a 74.84 per cent controlling stake in India-based Weizmann Forex. The purchase values 100 per cent of Weizmann Forex at US$ 65.94 million, net of $17.51 million of cash remaining in the business. Ebix will be funding the entire transaction in cash, using its existing bank line and internal cash reserves. Weizmann will be tightly integrated into the EbixCash Financial Exchange offering in India and abroad. The retained Weizmann executives becoming an integral part of the combined EbixCash remittance and forex leadership team headed by TC Guruprasad.