ATLANTA--Ebix Inc., a leading international supplier of software and e-commerce solutions to the insurance industry, announced that it has completed its acquisition of LifeLink Corp. Inc., adding hundreds of brokers and approximately 35 life insurance companies as customers.

Under terms of the agreement, Ebix has acquired all of the outstanding capital stock of LifeLink from the Shareholders in exchange for an aggregate purchase price of $10,500,000 payable as follows: $5,000,000 paid in cash at closing, $2,500,000 paid in cash over a deferred period of five years, and $3,000,000 payable in 200,000 shares of the common stock of Ebix issued at the time of closing.

LifeLink Corp. reported revenues of $5.3 million for its fiscal year ended December 31, 2003, up approximately 23% from the prior fiscal year, with adjusted EBITDA (earnings before interest, taxes, depreciation, amortization plus  salary and bonus for LifeLink's former owner that will not recur in 2004 and beyond) of approximately $ 1.95 million. The acquisition is expected to be accretive in earnings to Ebix, effective immediately.

Ebix intends to run the company as a separate profit center, while retaining all the 35 employees of LifeLink Corp.

"At a high level, Ebix requirements for any potential acquisition candidate are rather simple. Firstly, the potential acquisition has to be accretive in terms of positive cash flows and earnings both. Secondly, the potential acquisition has to be a leading player in a niche area of insurance software." Robin Raina President & CEO of Ebix, Inc. said, "Thirdly, the acquisition has to fit into our technology vision of converging all the different players in the industry - brokers, carriers and the consumers. Finally, the potential acquisition needs to have a well-balanced management team with a good track record."

Raina added "With its leadership position in life insurance sales illustration software arena, LifeLink fitted the above requirements extremely well especially with its strong and consistent track record of positive cash flows and earnings both, while having no debts at the time of closing. Naturally, the acquisition made good sense for Ebix. Additionally, the acquisition of thirty-five strong customer base of life insurance companies provides us with new cross-selling opportunities in terms of selling development services and products to these companies, from our Development services division targeted at insurance companies."

For the purposes of this transaction, WFG Capital Advisors LP served as Financial Advisors to LifeLink Corporation.

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