E-Commerce Software Firm, Ebix, Increases Offer to Acquire Docucorp

Updated on Thursday, February 15th, 2007 at 9:26 am

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Atlanta, Georgia - (Cheap Web Hosting Directory) - February 15, 2007 - Software and e-commerce solutions company, Ebix, has issued a new offer to acquire Docucorp International. The new proposal was outlined in a letter from Robin Raina, Chairman and Chief Executive Officer of Ebix Inc., to the Docucorp Board of Directors.

Ebix announced that in view of the urgency imposed by the proposed vote on the existing merger proposal from Skywire, it has decided to disclose the contents of the letter sent to the Docucorp Board for all the Docucorp and Ebix investors.

Highlights of the letter sent to the Docucorp Board of Directors include:

New Proposal We are proposing to acquire all of the shares of Docucorp common stock as well as the restricted shares, vested and unvested options for $11.00 per share. Our new offer possibly exceeds our previous offer of $140 million substantially, since it includes the following key elements:

– Cash: $95 million in cash. Ebix has already secured a term sheet from a leading bank to handle the $95 million cash component.
— Shares: $45 million in the form of newly registered Ebix stock, valued at the 30-day trailing average price of the Ebix common stock
– Option to receive stock instead of cash: As a part of the $95 million cash offer, Docucorp shareholders would have the option to accept cash or Ebix common stock (valued at the 30-day trailing average price) instead of cash. This option has been offered in view of a large number of calls that we received from Docucorp shareholders requesting us to ideally have this option for them.
— Warrants: Warrants equivalent to 15% of the Ebix common stock issued to Docucorp shareholders, at the 30-day trailing average price of the Ebix common stock, with a validity period of one year. This would provide a possible upside to the Docucorp shareholders who receive Ebix common stock or elect to receive Ebix common stock.
– Downside Cover: Downside cover for a one year period from the date of merger, up to a limit of 10% of the price at which Docucorp shareholders received the Ebix common stock. This implies that 12 months from the closing date, the 30-day trailing average price of the Ebix stock would be calculated. If the 30-day trailing average price of the Ebix stock turns out to be lower than the price at which Docucorp shareholders received the Ebix stock, then Ebix would compensate such shareholders, by granting them new Ebix stock equivalent to their losses, up to a loss limit of 10%.

Ebix, Inc. is a leading international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial services industries.

Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. Ebix combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of organizations.

With bases in Singapore, Australia, the US, UK, New Zealand, India and Canada, Ebix employs insurance and technology professionals who provide products, support and consultancy to more than 3,000 customers on six continents. Ebix’s focus on quality has enabled it be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model (CMM). Ebix has also earned ISO 9001:2000 certification for both its development and call center units in India.

For more information about Ebix, please visit: www.ebix.com.