Ebix emerges debt-free after acquisition by Eraaya LifeSpaces, Robin Raina will continue to lead, ET TravelWorld

Ebix Inc., a leading global provider of on-demand software and e-commerce services, has successfully emerged from bankruptcy proceedings after being acquired by BSE-listed Eraaya LifeSpaces. The company, which filed for Chapter 11 bankruptcy in January 2024, has now become debt-free worldwide, exiting bankruptcy within a record nine months. The acquisition marks a significant turning point for the 12,000-employee strong firm, as it prepares to embark on a new phase of growth.

The company’s exit from bankruptcy, driven by its non-operating loans being called in by lenders, was unexpected given its strong financial performance, including a trailing 12-month EBITDA of approximately US D145 million. Despite the challenges, Ebix has maintained its global operations across more than 75 countries and continues to serve its clients without interruption.

Eraaya LifeSpaces, known for managing luxury properties, has aligned its investment with Ebix’s global portfolio. Despite the acquisition, Ebix will remain a US-domiciled company, ensuring that its operational responsibilities and commitments in various geographies remain unaffected. The acquisition also strengthens Ebix’s financial foundation, allowing the company to focus on delivering consistent EBITDA and cash flow.

Robin Raina, who will continue to serve as both CEO and Chairman of Ebix Inc. and as the newly appointed Chairman of Eraaya, expressed optimism about the company’s future. “Today marks a significant milestone in Ebix’s 48-year history. With a solid financial foundation, a leaner, more efficient operating model, and plans to raise more liquidity, Ebix is well-positioned to drive long-term profitable growth both in the U.S. and globally,” said Raina.

Ebix’s subsidiaries, including its Indian arm EbixCash, remain integral to its global strategy. EbixCash is well-known in India for its foreign exchange services, luxury tours, and travel-related services through its subsidiaries Via and Mercury, which cater to approximately 517,000 agents and 17,900 registered corporate clients.Looking ahead, Ebix plans to leverage its strengths in pioneering world-leading on-demand software exchanges, its expansive distribution reach, and its deep understanding of global regulations. The company also aims to continue expanding its international investor base, supported by recent investments from US investors Watch Hill Capital and Melanie Lane Partner Series.

Raina concluded with a strong message of confidence in the future: “Ebix 2.0 intends to be lean, efficient, and focused on consistent profitable growth. We are at the beginning of delivering even greater value to our stakeholders, and I am equally committed to driving profitability and growth for Eraaya’s investor base.”

As Ebix moves forward, it remains committed to delivering world-class services to its clients, ensuring that its resurgence from bankruptcy sets the stage for a new era of innovation and financial success.