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Ebix to acquire money transfer biz of Transcrop for $7.4 mn

Ebixcash's chief growth officer said that the acquisition will also help expand its distribution footprint to 2.31 lakh outlets across the country

Press Trust of India  |  Mumbai 

Ebix to acquire money transfer biz of Transcrop for $7.4 mn

Ebix, an IT services vendor to the financial sector, on Friday said it will acquire the money transfer business of BSE-listed for $ 7.4 million or Rs 460 million in an all-cash deal. This will be the Noida-headquartered company's fourth remittances-related in the last five months and will increase its share in the inward international market to up to 80 per cent, it said in a statement. The is being done through one of its Indian subsidiaries present in the domestic market, Ebixcash, it said, adding that it is subject to regulatory approvals which should take about two months. has entered into an agreement to acquire the (MTSS) business of the BSE-listed Ebixcash's chief growth officer, Bhavik Vasa, said, "Post announcing our $200 million growth fund for India, this is our fifth M&A deal, solidifying our leadership position across digital payments and money transfer in India." He said the will also help expand its distribution footprint to 2.31 lakh outlets across the country. The target business processes 1.7 million transactions per annum through 7,500 distribution outlets and 70 branches.

Other inward remittance-related businesses acquired by recently include Youfirst Money Express, and Wall Street Finance. "We genuinely believe that is a logical home for Transcorp assets, as it complements EbixCashs financial exchange portfolio perfectly, opening up tremendous cross-selling opportunities on both sides," Ashok Aggarwal, the chairman and managing director of Transcrop said. However, shareholders of Transcorp did not seem to be enthused with the announcement as the scrip was trading 4.95 per cent down at Rs 56.60 a piece on the at 1352 hrs as against a 0.44 per cent increase on the benchmark.

First Published: Fri, January 05 2018. 15:02 IST
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