ItzCash Parent Ebix To Buy YouFirst Money In Second Acquisition In A Week
Software services firm and ItzCash parent, Ebix Inc., will buy YouFirst Money Express Pvt. Ltd. in its second acquisition in a week.
The U.S.-based Ebix entered into an agreement to acquire the money transfer service scheme (MTSS) business of YouFirst Money Express for an undisclosed amount, Bhavik Vasa, chief growth officer at ItzCash told BloombergQuint over the phone. The announcement comes just days after Ebix entered into an agreement to acquire MTSS assets of Bengaluru-based Wall Street Finance Ltd. for $7.4 million.
Vasa declined to comment on the deal value but a person privy to the development said on condition of anonymity that Ebix is likely to acquire YouFirst Money for $7.5-10 million, higher than the price it paid for Wall Street Finance.
With a market share of 15 percent of Western Union's inward remittance flows in India, YouFirst is the third largest international remittance player in India, the company said in a media statement. It has a higher market share than Wall Street Finance, the person added.
The acquisition of YouFirst Money and Wall Street Finance’s MTSS inward remittance assets, will give Ebix access to 25 percent of India’s inward international remittances, Vasa said.
India, which saw a nearly 9 percent decline in remittances in 2016 to Rs $62.7 billion, is still the largest recipient of remittances in the world, according to a report by the World Bank. Ebix said its ItzCash service is already the largest domestic remittance exchange in India clocking volumes of approximately $100 million per month.
The Nasdaq-listed Ebix intends to consolidate both these acquisitions into its financial exchange operations. “We expect that the consolidation of YouFirst and Wall Street assets into our existing financial exchange infrastructure will enhance our operating margins substantially, in the financial exchange segment in India,” Robin Raina, Ebix Chairman said in a statement.
Vasa added that YouFirst is the second investment made from $100 million (Rs 643 crore) the Ebix board had set aside for investments and acquisitions. The firm is scouting for further acquisitions in areas of digital payment, travel and lending.
The two acquisitions have increased ItzCash’s distribution reach substantially to over 94,000 outlets across the country, the company said.