Ebix Inc., an international supplier of on-demand software and e-commerce services to the insurance industry, announced that its merger agreement with an affiliate of Goldman, Sachs & Co. has been terminated. Both parties agreed to the termination of the deal, which was originally announced May 1, 2013.
The decision to terminate the merger agreement comes after Ebix received a letter from the U.S. Attorney for the Northern District of Georgia on June 14, which indicated it had opened an investigation into allegations of intentional misconduct. The potential misconduct came up as a result of pending shareholder class action lawsuits against the company’s directors and officers, the media and other sources.
"We believe the allegations in the class action suits are without merit," said Robin Raina, chairman and CEO of Ebix. "We want to thank Goldman Sachs for their interest in acquiring Ebix and we are naturally disappointed that we could not complete a transaction at this time."
Ebix previously disclosed the pending shareholder class action lawsuits and an SEC investigation involving the material of those lawsuits.
The company noted in a release that the merger agreement was terminated without payment of a termination fee, and all parties involved are released from all claims arising under or related to the terminated merger agreement and related transaction agreements.
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