Ebix Offers To Buy Patriot National For $9.50/shr

(RTTNews) - Ebix Inc. (EBIX), a supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, announced that it has sent a letter to the Board of Patriot National, Inc., a provider of technology-enabled outsourcing solutions for the insurance industry, outlining its offer to acquire 100% of the outstanding stock of Patriot National for $9.50 per share.

The Ebix offer represents a 37% premium to Patriot National's closing share price of $6.92 as of June 14, 2016. The offer contemplates the assumption of Patriot National's receivables, cash and restricted cash and other assets as well as its current and long-term liabilities including notes payable and earn-out liabilities.

Ebix believes that the combination of the two companies can be highly accretive for the shareholders of the combined post-merger company.

Ebix intends to pay for at least 55% of the purchase in cash and the balance (45%) in cash or stock, as mutually agreed upon, and expects the transaction to be immediately accretive to earnings per share for Ebix shareholders. Ebix's offer is subject to due diligence and customary regulatory and other closing conditions.

In view of this proposed offer, Ebix has postponed plans for a 3-for-1 stock split and related special shareholders meeting until further notice.