Boston, MA 08/26/2014 (wallstreetpr) – Ebix Inc (NASDAQ:EBIX) announced about its plans to repurchase $80 million of shares in coming one year. The stocks may be purchased from the open market as well as in privately negotiated transactions. Ebix have evaluated the present cash reserves, expected operating cash flows and its credit line before making a final decision. All the factors support the repurchase plans. It has got sufficient cash after allocating it for the working capital needs and other purposes to go for the repurchasing of shares in coming time. Ebix is known for creating the customized data exchanges for life insurance agencies.
The additional information
Ebix Inc (NASDAQ:EBIX) has informed that it has repurchased 471,000 stocks cumulatively since June 30, 2014. The repurchase was done from the PlanetSoft shareholders. Also, part of the repurchase came from the open market. The diluted share count of Ebix stands at approximately 38.2 million shares. The future repurchases will be done according to the rule 10b-18 of the Securities exchange Act 1934.
The industry
The insurance software companies seek ample benefits from the secular trends existing in the industry. In the present time, consolidation of the insurance industry is on which will lead the larger firms to benefit from the economies of scale. Ebix Inc (NASDAQ:EBIX) will make the repurchases at appropriate time to enhance the value for shareholders.
The management view
Robin Raina, President and the CEO, said that around 23 million shares of Ebix Inc (NASDAQ:EBIX) are held by long-term holders or insiders. As a result, the number of shares available as the float stands around 15 million shares. Shareholders of Ebix will be delighted with the announcement of stock repurchase plans. With the big plans of the stock repurchase of $80 million of shares, Ebix will work out to get a fair price of its share in the coming one year. Investors can look out to buy Ebix shares for a time horizon of one year.
