Ebix Europe unaffected by Ebix Inc.’s Chapter 11; PlacingHub launch on track
Ebix Europe, a London-based technology specialist, has announced that it remains unaffected by the Chapter 11 Arrangement of its US-based parent company, Ebix Inc.
The UK Limited company reassured its clients that it operates independently of Ebix Inc.’s recent developments and is ringfenced from the anticipated sale of certain US business units.
Business operations at Ebix Europe continue as usual, with Vice President Pete Smyth emphasising the company’s commitment to providing outstanding service to its clients.
Smyth confirmed that the upcoming launch of PlacingHub, a placement platform, remains on schedule for January 2024, with several broking and underwriting organisations already signed up.
Despite the challenges faced by Ebix Inc., Ebix Europe, along with the group’s other regional subsidiaries worldwide, operates independently and profitably.
The Chapter 11 filing by Ebix Inc. in the US, primarily to sell its North American Life and Annuity assets, does not impact Ebix Europe’s operations.
Ebix Inc. aims to strengthen its balance sheet through the sale of the North American Life and Annuity assets, accounting for 14.5% of its worldwide GAAP revenues.
The company has entered a “stalking horse” agreement to sell these assets to Zinnia, an Eldridge business specialising in life insurance and annuity technology.
The international subsidiaries and franchisees of Ebix, totaling approximately 200 affiliates outside the United States, are not part of the Chapter 11 filing. Ebix reassures stakeholders that all worldwide operations will continue without interruption.
The sale of the North American Life and Annuity assets will proceed under Section 363 of the Bankruptcy Code, with Zinnia set as the baseline bidder at $400 million, subject to court approval.
The process allows for competitive bids through a court-supervised auction, with the company engaging with potential buyers for a value-maximising transaction.
Jefferies LLC has been retained as an investment banker to assist in the marketing and sale process. Ebix Inc. has filed customary “First Day Motions” to ensure the smooth continuation of day-to-day operations during the Chapter 11 proceedings, with court deliberations expected in the coming days.
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