ItzCash’s parent Ebix to buy money transfer operations of Wall Street Finance
Mumbai: Ebix Inc., an international supplier of on-demand software and e-commerce services to the financial services and healthcare industry, on Thursday said that it had agreed to acquire the money transfer service scheme (MTSS) business of Wall Street Finance Ltd, along with its subsidiary Goldman Securities Ltd.
Ebix is spending $7.4 million for the two acquisitions, the company said in a statement. The acquisitions are subject to approval by shareholders of Wall Street Finance and the process is expected to take around 45 to 75 days, the company said.
The acquisition of these MTSS inward remittance assets, which control 10% of the market, would strengthen Ebix’s position in the financial exchange market in India, following its acquisition of ItzCash in May 2017, the company said.
Ebix had acquired an 80% stake in ItzCash, a payments services provider, for Rs800 crore ($124 million) through a combination of primary and secondary share purchases.
Founded in 2006, ItzCash, which started with digital payments, has over the years expanded into areas such as remittances, financial services, corporate solutions, point of sale (PoS) terminals and payment gateway. ItzCash processes approximately 600,000 transactions per day and approximately $2 billion in annual payment volume, according to the company statement.
“The acquisition of these MTSS assets will complement our ItzCash financial exchange and allow us to streamline costs further while offering tremendous cross selling opportunities. This should also help enhance our operating margins, in the financial exchange segment in India,” said Robin Raina, president and CEO, Ebix.
The acquisition also brings Wall Street Finance’s network of 10 branches and over 9,000 sub-agents to Ebix, building on ItzCash exchange’s distribution network of more than 75,000 physical retail outlets.
Wall Street Finance is a listed company engaged in the business of international inward and outward remittance. Ebix, which is present in more than 40 countries, powers multiple platforms across the world in the field of life, annuity, health, and property and casualty insurance, processing over $100 billion in insurance premiums annually.