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.