Ebix acquires wealthtech Miles Software for $19m
Ebix, a supplier of e-commerce services to the insurance and financial industries, has acquired Mumbai-based Miles Software for about $19 million, with an additional contingent earn out of up to $8.5 million payable after two years.
The deal was done through one of US-based Ebix’s Indian subsidiaries.
Miles has 300+ financial service customers across 18 different countries in Europe, Middle East and Southeast Asia. Last month, the State Bank of Mauritius (SBM) chose Miles’ technology platform MoneyWare for wealth management and banking options.
Milan Ganatra, founder and CEO of Miles Software, says: “With 7,500+ employees servicing clients in India, Ebix offers us expansion possibilities that are truly exciting. Ebix’s expanse across the world and more specifically in North America, Australia, UK and Brazil has the potential of opening up immense new opportunities for our products.”
Miles will serve as Ebix’s investment, wealth and asset management division with its products being interfaced across both EbixCash financial exchanges and EbixExchange insurance exchanges.
Ebix says “all key Miles business executives have been retained” – but there was no mention of what happens to the other staff. Ganatra will become a “key member of the EbixCash senior leadership team in India”.
In the financial year 2017, Miles had revenues of $8 million and Ebitda of approximately 8%. Ebix believes that the business can continue to grow at the rate of 20% plus annually with operating margins of 30% or more, once fully integrated.
Founded in 1999, Miles derives 44% of its revenues from India and the balance coming primarily from Europe, Middle East and South-East Asia.
Miles solutions are already interfaced with Ebix’s Indus lending-based enterprise solutions.
Miles’s India customer base includes banks and financial institutions such as Kotak Mahindra Bank, State Bank of India and ICICI Bank.