Activist Investor Seeks Board Changes At Ebix

(RTTNews) - Activist investor Barington Capital Group, in a communique to Ebix Inc. (EBIX), has demanded the induction of new independent directors to its board, as the insurance software provider's stock has been under-performing.

In a letter to Ebix CEO Robin Raina, Barington noted that the company's stock has "dramatically underperformed" its peers and the market over the past five years. The company also pointed out the negative impacts of regulatory investigations and lawsuits. Barington said it believes that Ebix's strong market position and track record of profitable growth is not being recognized by the marketplace.

Barington has suggested names of four independent director nominees that include Noel Spiegel, Joseph Wright, Javier Perez and James Mitarotonda.

"We believe that insufficient public disclosure has been provided on the status of the investigations, and it does not appear to us that the Board of Directors of Ebix has been taking adequate steps to protect shareholder interests and promptly resolve the concerns that exist with respect to the Company," Barington said in the communique.

"We therefore believe that it is imperative that board oversight be improved in order to ensure that shareholder interests are protected and to enhance the Company's credibility with investors, regulators and the marketplace," the letter added.

EBIX is currently trading at $16.09, up $0.49 or 3.14%, on the Nasdaq.