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Subject:  Looking More Deeply Date:  12/26/2012  4:32 PM
Author:  leaderoftheback Number:  208 of 370

Full disclosure

1. I have nop reason to bash EBIX
2. I want EBIX to be real.

Hello all-
I can't leave well enough alone, so one of the burning questions for me is "what are EBIX acquisitions really worth?"

Let's look at PlanetSoft, the most recent acquisition. EBIX states $40 million paid and that earnings will be immediately accretive. It's a private company; we're not likely to find any real financial info. So I went looking for PlanetSoft info of any kind. Plugging it into the browser brings up the EBIX site. Next I went to and used the wayback machine. Let's see...PlanetSoft, offices in Hartford CT (insurance, afterall) and Aliso Viejo CA. Two offices. Good. Read about the "The Policy Protector"...ok, good...but the page was from 2010. So from 2010 to 2012 there is...nothing? Not a single web page?

Well, let's go to EBIX SEC filings...nothing.

Let's review details of the press release:
With over 14-years of successful experience, PlanetSoft currently services many of the top 20 Life insurance companies in the United States and India, including industry leaders such as Swiss Re, MassMutual, Liberty Mutual, Manulife Financial, Sun Life Financial, Desjardins and New York Max Life. With approximately 575 employees spread across India and the United States, PlanetSoft is in the business of powering data exchanges that streamline core insurance operations in the areas of client acquisition, underwriting, and distribution management.

575 employees at PlanetSoft...does anybody know how many employees EBIX had a year ago? Bet a few must have lost their jobs there.

Here's a different look at similar info (can't say if the company moved to India or if it was always there):

Taking a quick look at the annual report, I see on the balance sheet that 75% of all assets are Goodwill and Intangibles (where real assets go to die, as I often say). That's not pretty.

Guess I have more searching to do, but casting aspersions at the company seems like a pretty easy game. It's no wonder that it seems to work. Honestly, it looks a little scary.

I'll try to look up a couple of the other recent acquisitions.

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