Insurance software vendor
The price is high, as A.D.A.M. had $13.45 million in revenue during the first six months of 2010. But Ebix is a profit powerhouse with net income of $26.4 million during the first half of 2010 as revenue grew 48 percent to $63.8 million.
Both companies are based in Atlanta, which should ease integration and make cost synergies more achievable, according to the firms. Ebix sells about two dozen different information systems to life, health, annuity, and property & casualty companies, as well as insurance brokers and agents. It also offers business process outsourcing services and custom software development.
A.D.A.M.'s content portfolio, targeting consumers, providers and insurers, includes a medical reference library and decision support tools such as symptom identification, risk assessments, wellness calculators, a drug interaction checker, exam scheduling recommendations and interactive views of the human body.
The acquisition will enable Ebix to offer health insurers medical content and decision support for consumers along with its employee benefit portals and back-end transactions processing services. Ebix expects the acquisition will add at least 15 cents in diluted earnings per share in the first 12 months after closing. Some of that profit will result from A.D.A.M. no longer having the expenses associated with being a publicly traded company.
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