Ebix Acquires Rio De Janeiro Based WDEV
- M&A Deals
- 26.12.2016 07:45 am
Ebix, Inc., a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today announced that it has acquired Rio De Janeiro based WDev Soluções em Tecnologia S/A, with the goal of becoming the largest one-stop insurance software services provider in Brazil, while offering a wider repertoire of insurance related software services to prospective clients in Latin American markets.
Under the terms of the agreement, Ebix’s Latin American subsidiary has acquired all of the outstanding capital stock of WDEV. Ebix funded the purchase using its internal cash reserves, with no Ebix shares being issued. Ebix expects the transaction to be immediately accretive for its shareholders.
The Company also announced that it has retained the entire senior management team led by Guillermo Reid, founder and CEO of WDEV, who will continue to lead the WDEV Division of Ebix as Vice President and Division Head.
WDEV is a specialized software and services firm focused primarily on the insurance marketplace since 2012. The Company provides technology and operational consulting, straight through processing services, and Software-as-a-Service (SaaS) products to the insurance industry. WDEV services include Business and IT Consulting, Migrations, Conversions, Integrations and Business Process Automation. WDEV revenue run rate at present is approximately US$11 million annually.
“Over the last 5 years, WDEV, has built a strong reputation for its extensive domain knowledge, technical expertise and ability to innovate while delivering and deploying exceptional insurance software,” Guillermo Reid, Founder and CEO of WDEV, said. “In Ebix, we found a Company who shared our vision of providing a one stop shop experience to the industry while making our services available to insurers, brokers, agents and service providers.”
Robin Raina, President and CEO of Ebix, Inc. said, “WDEV is recognized in the Brazilian insurance marketplace for its innovative products and services as also its extensive domain knowledge of insurance. Between Ebix and WDEV, our combined operation now forms the single largest insurance software services provider in Brazil, opening up cross selling opportunities and allowing us to target larger turnkey deals now.”
Raina added, “Under its new name Ebix Consulting, WDEV will have access to the full range of hundreds of high-quality developers and business analysts already employed by Ebix, as well as the sales and marketing infrastructure to seek large on-site and offshore turnkey projects. We recognize that the insurance industry values domain-specific knowledge, and thus are excited to have access to an additional spectrum of complementary leading solutions as well as the extensive strategic consulting expertise of WDEV’s 270 employees.”
No financial advisors were involved in the transaction from the Ebix side.