ItzCash Parent Ebix To Buy Wall Street Finance Arm For $7.4 Million
U.S.-based software services firm Ebix Inc entered into an agreement to acquire Wall Street Finance’s money transfer service scheme and its subsidiary Goldman Securities Ltd. for $7.4 million.
The deal will allow Ebix to remit money sent from abroad through Western Union, Ria or InstaCash, according to a company statement. It comes just three months after the Nasdaq-listed Ebix acquired 80 percent stake in ItzCash Card Ltd., valuing the company at $225-270 million. ItzCash has been in the business of remittance and digital payments since 2006.
The acquisition “will help us grow inorganically and define our leadership in money transfer space, internationally and nationally,” Bhavik Vasa, chief growth officer at ItzCash told BloombergQuint over phone.
The acquisition of these MTSS assets will complement the ItzCash financial exchange and will allow the firm to streamline costs, Robin Raina, Ebix Chairman, President and CEO said in the media statement. “This should also help enhance our operating margins, in the financial exchange segment in India.”
The acquisition will also bring Wall Street Finance’s network of 10 branches and over 9,000 sub-agents to Ebix and will add to ItzCash exchange’s distribution network of more than 75,000 physical retail outlets.
Ahead of the the announcement, Wall Street Finance’s shares rose to approx 20 percent on the BSE.
(Updates Bhavik Vasa’s quote in the third paragraph)