Ebix to Buy Back $100 Million in Shares

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Insurance and e-commerce software company Ebix (NASDAQ: EBIX  ) announced today that its board has approved $100 million in share buybacks over the next two years. According to the release, the company will use both cash on hand and future cash flow from operations to fund its repurchase program. Ebix generated $65.3 million in free cash flow in 2012 (excluding funds for acquisitions), and currently holds $35.5 million in cash.

Directly addressing recent rumors of international criminal misconduct, Ebix's press release noted:

The Company believes that recent allegations published in the media and elsewhere are without merit, and that a share repurchase program represents an attractive use of its cash resources. The Board of Directors is confident that the Company is executing on an effective business strategy, which is generating both strong free cash flow and a robust contract pipeline.

Shares of Ebix fell 13.45% today, and are down 50% for the week.

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  • Report this Comment On June 22, 2013, at 2:32 AM, bobyk3 wrote:

    Ebix is the second largest holding in my portfolio.

    Ebix's AnnityNet platform is very impressive. It has no competition AND nearly all major carriers and agents use it. It runs as SAAS/Cloud and business rules are updated by the carrier ONCE and is available automatically to all agents. It saves money and time for carriers AND agents. Ebix earns a fee for each transaction or application.

  • Report this Comment On June 22, 2013, at 10:09 AM, kmartindmd1 wrote:

    So will u buy more in the low?

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9/23/2016 4:00 PM
EBIX $56.64 Down -1.20 -2.07%
Ebix CAPS Rating: ***