EbixCash World Money, the Indian subsidiary of Nasdaq-listed Ebix, has entered into an agreement to acquire 74.84 percent stake in India-based Weizmann Forex.
On November 18, Moneycontrol had reported that Ebix is close to finalising a deal to acquire Weizmann Forex.
Weizmann Forex is the second largest inward remittance provider besides being one of the four largest foreign exchange & outward remittance providers in India.
The purchase values 100 percent of Weizmann Forex at $65.94 million, net of $17.51 million of cash remaining in the business.
Ebix will be funding the entire transaction in cash, using its existing bank line and internal cash reserves.
EbixCash has also made a public offer to acquire the remaining 25.16 percent publicly-held Weizmann Forex shares for Rs 528 per share, in adherence to SEBI rules.
Weizmann will be tightly integrated into the EbixCash Financial Exchange offering in India and abroad. The retained Weizmann executives will become an integral part of the combined EbixCash remittance and forex leadership team headed by EbixCash World Money Managing Director TC Guruprasad.
For the year ended March 31, 2018, Weizmann reported gross revenues of $1.1 billion, representing approximately $23 million of net revenues from the perspective of Ebix.