Ebix is looking to acquire the US-based Patriot National, which provides technology-enabled outsourcing solutions for the insurance industry.
The company has sent a letter to the Patriot National’s board to purchase 100% outstanding stock for $9.50 per share, representing a 37% premium to its closing share price of $6.92 on 14 July.
Based in Fort Lauderdale of Florida, Patriot National offers technology and outsourcing solutions for the insurance companies to mitigate risk and comply with complex regulations.
The company provides general agency services, technology outsourcing, software solutions, specialty underwriting and policyholder services, as well as claims administration services to its customers.
It also offers self-funded health plans and employment pre-screening services to its insurance carrier clients, employers and other clients.
Patriot National’s workers compensation insurance technology and outsourced services is expected to allow Ebix to provide enhanced products and services to its customers.
Ebix president and CEO Robin Raina said: "We believe that Patriot National’s products and services are complementary to Ebix in the insurance industry and a combination of the two companies would lend itself to significant synergies and the creation of the global insurance industry’s largest end-to-end software services company.
"We see substantial synergies, economies of scale and expanded growth potential for the combined business."
Ebix provides on-demand software and e-commerce services to the insurance, financial and healthcare industries.
The company’s services range from the infrastructure exchanges, carrier systems, agency systems and risk compliance solutions to custom software development for all entities involved in the insurance industry.
Image: Ebix intends to purchase Patriot National’s outstanding stock for $9.50 per share. Photo: courtesy of Chaiwat / FreeDigitalPhotos.net.