JOHNS CREEK, GA--(Marketwired - Aug 1, 2016) - Ebix, Inc. ( NASDAQ : EBIX ), a leading international supplier of on-demand software and e-commerce services to the insurance, financial, e-governance and healthcare industries, announced today the Special Committee of the Board of Directors of Patriot National ( NYSE : PN ) has agreed to consider an offer for a potential transaction with Ebix.
The Special Committee of the Board of Directors of Patriot National decided to enter into serious discussions with Ebix, while allowing Ebix to begin comprehensive due diligence into the Company, after Ebix sent a revised and improved offer to the Patriot National Special Committee. The improved Ebix offer of $475 million is expected to yield a price per share that significantly exceeds the company's initial offer, with Patriot paying all of its outstanding debt obligations, its related transaction expenses, and leaving a specified minimum amount of cash and receivables in the business.
"We are excited about the possibilities of this prospective merger. It would create the world's largest insurance services provider of straight through processing with a wide repertoire of end-to-end services under one roof, while complementing the relative strengths of both parties in terms of products, services and client base," said Robin Raina, Ebix Chairman of the Board, president and chief executive officer. "We see substantial synergies, economies of scale and expanded growth potential for the combined business. We believe that our offshore and technology capabilities would serve to further improve Patriot National's operating income substantially, making it a highly accretive transaction for both sides in the short term."
About Patriot National
Patriot National, Inc. is a national provider of comprehensive technology and outsourcing solutions that help insurance companies and employers mitigate risk, comply with complex regulations and save time and money. Patriot National provides general agency services, technology outsourcing, software solutions, specialty underwriting and policyholder services, claims administration services, self-funded health plans and employment pre-screening services to its insurance carrier clients, employers and other clients. Patriot National is headquartered in Fort Lauderdale...