Ebix ( Nasdaq - EBIX ) -- Completes Acquisition

Ebix formally acquired ADAM, a leading provider of employee benefits and health care software.  The deal was an all stock transaction, consisting of 3.65 million shares.  ADAM will be consolidated in Ebix's results for eleven months during 2011.  Last year the company generated approximately $28 million in revenues.  The transaction is expected to add $.10-$.15 a share to Ebix's income right off the bat.  Much greater contributions are possible in the future.  ADAM always had problems converting its database and marketing prowess into a profitable growing business, primarily because it lacked programming expertise.  That's Ebix's strength.  Performance also could surge once the new national health insurance regulations take effect.  ADAM serves the small business market, which could be dramatically impacted by the rule changes.  Its software also could be modified to address the health insurance exchange market that is slated to develop under the law.  Meantime, Ebix's core insurance exchange business continues to perform effectively.  Our estimates are unchanged. 

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