Ebix emerges from Chapter 11 restructuring as a Debt-Free Company, poised for future growth

On August 30, 2024, Ebix exited Chapter 11 in a record time of less than nine months. The restructuring plan, approved by the U.S. courts earlier on August 2, 2024, was described as a “marvellous job.” The resolution of this complex, cross-border matter involved a coordinated effort by legal teams from Sidley Austin LLP and professionals from multiple multinational accounting and investment banking firms across various global offices.

Despite entering Chapter 11 due to non-operating loans being called by its lenders, Ebix had a trailing 12-month EBITDA of approximately USD 145 million. The company has a remarkable history of consistent profitability over 23 years, with shareholder returns reaching as high as 27,500 percent at one point. Ebix’s entry into Chapter 11 was unexpected, but its exit marks a new chapter filled with optimism and renewed strength.

Key Factors Behind Ebix’s Confident Future:

• Consolidation with Eraaya LifeSpaces Limited: Eraaya, listed on the Bombay Stock Exchange, has emerged as the successful plan sponsor. Ebix’s global results will now be consolidated into Eraaya, ensuring that the company’s operations remain unaffected across all geographies.
• Continued Leadership Under Robin Raina: Robin Raina, the founder of Ebix, will continue to lead as CEO and Chairman. His visionary leadership has been instrumental in the company’s growth, having positioned Ebix on Fortune’s list of the 100 Fastest Growing Companies five times.
• Focus on Clients and Consistent Leadership: Ebix will maintain its focus on delivering world-class products and services to its clients in the U.S. and internationally. The company will continue to operate its subsidiaries in over 75 countries without any changes to client agreements or service standards.
• Growth of EbixCash Operations: EbixCash, the company’s Indian subsidiary, will continue its growth trajectory with a “Phygital” strategy, combining physical distribution with an online digital platform. This includes a wide range of services such as money remittance, Forex, travel, utility payments, lending, and wealth management across 75+ countries.
• Debt-Free Status and Strong Financial Foundation: Ebix is now debt-free worldwide, with a clean balance sheet and 85 percent of its revenue being recurring. The company is well-positioned to pursue its goal of delivering strong EBITDA and cash flows.
• International Expansion and Backing: Ebix continues to attract international investments, with backing from major U.S. investors such as Watch Hill Capital and Melanie Lane Partner Series, supporting its future acquisition strategy and expansion plans.

Robin Raina, CEO and Chairman of Ebix, expressed his optimism, stating, “Today marks a significant milestone in Ebix’s 48-year history. With a solid financial foundation and a leaner operating model, Ebix is well-positioned for long-term profitable growth. We are excited to leverage our strengths and continue delivering world-class services to our clients globally.”

As Ebix embarks on this new chapter, the company is focused on sustaining its leadership in the On-Demand software exchanges and e-commerce sectors while continuing to maximize shareholder returns. With a renewed commitment to profitability and growth, Ebix is set to build on its legacy of success.