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EBIX continues to align strategic partnerships and acquisitions to grow its presence in financial services across the globe. The latest acquisition is an Indian based software company, Indus Software Technologies. Once again, EBIX bought a business that is expected to contribute earnings.

A common theme that I've noticed in these type of press releases for EBIX is the that the acquired business is already profitable, that the business will be 'integrated' into EBIX systems, that the integration is expected to increase operating margins, and that key business executives are being retained as part of the acquisition. It's a pattern born out time and again by this small cap company that is growing revenue streams and the overall size of the business.

What was implied was that this was an all cash deal. As a shareholder, I would rather see EBIX buy additional assets with cash rather than increase debt or buy back shares. If the company feels it has cash that it can't deploy in better ways from my viewpoint increase the dividend so I can re-invest quarterly rather than have the company buy back shares on the open market; perhaps it's a view that is a little too me centered than what is best for the entity. I just have a hard time agreeing that the best use of capital by this small of a company is purchasing its own stock.


Long EBIX having trimmed back to meet investment diversity goals, but happy to have dividend automatically re-invest quarterly.
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