Ebix, a supplier of on-demand software and e-commerce services to the insurance industry, said that it has acquired Houston-based Connective Technologies, in an asset purchase transaction, marking its entry into the property and casualty exchange market.
Upon acquisition, Connective will become a part of the EbixExchange Division. Ebix’s P&C exchange intends to focus on providing on-demand exchange services for P&C sector in US, while providing end-to-end straight through processing.
Connective Technologies has been a provider of exchange solutions for the property and casualty insurance industry in the US, specializing in internet interface solutions for carriers and their agents.
Dan Delity, senior vice president of EbixExchange, said: We are excited about this acquisition since it allows us to provide the property and casualty insurance industry with a real alternative to IVANS.
We believe that putting Connective solutions under the EbixExchange umbrella is likely to result in Ebix being able to convince some of the top property and casualty carriers to switch to EbixExchange.”
Robin Raina, president and CEO of Ebix, said: “On the financial front, we expect this acquisition to contribute recurring revenues, great operating margins and organic revenue growth to Ebix in 2010 and beyond. During our due diligence review, we were highly encouraged by the response of some of the large carriers to the prospect of Ebix entering the P&C exchange markets in the US. We expect to announce the switching of a large property and casualty carrier to our EbixExchange platform soon.”
Financial details of the acquisition were not disclosed. Ebix funded this transaction through internal sources using its own cash reserves. No Ebix shares were issued in the transaction.