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the Ebix Indian buying spree continues ?3

10:51 13-Feb-19


Ebix has announced another immediately accretive acquisition: an 80% controlling share of Zillious Solutions, an on-demand SaaS travel services company which leads Indian corporate market share.  It also recently closed on its Weizmann Forex purchase.

I've referenced India as potentially the world's most lucrative market for the next decade or two, and the growth there is underscored by opening of the most recent AES plant.  Accretive acquisitions are all the more welcome following India's cash reform, which may be allowing such transactions on the cheap, but value and cross-selling opportunities are difficult to assess independently.  Ebix is due to give another earnings report in the next few weeks, and investors will want to look at the debt.  I've already said that shares are no longer at a point where I would be so keen to buy them in advance of that report, and election results to follow.  However, holding for gains as we move into next year can still easily make sense for those willing to weather any of the interim volatility that I've acknowledged all along.