Vikas Lifecare and Eraaya Lifespaces Make Significant Progress in Ebix Acquisition

Vikas Lifecare Limited has provided an update on its acquisition deal involving Ebix Inc., announced in a recent stock exchange filing. The acquisition, spearheaded by a consortium led by Eraaya Lifespaces Limited, involves a significant financial commitment aimed at acquiring 100% of the equity in Ebix Inc.

The consortium, which includes Vikas Lifecare Limited as a key member, has recently remitted an amount of USD 12 million (approximately ₹101 crore) as part of the acquisition process. In addition, a further USD 35 million (approximately ₹293 crore) is expected to be remitted by the end of July 2024. This brings the total amount remitted so far to USD 21.75 million (approximately ₹181 crore), including an earlier remittance of USD 7.25 million (approximately ₹61.50 crore) and another USD 2.5 million (approximately ₹21 crore).

The acquisition process is structured around a Plan Support Agreement, which designates the consortium as the Stalking Horse Bidder for the acquisition. This agreement has received approval from the Independent Directors of Ebix Inc., highlighting the robustness and credibility of the consortium’s proposal. The Stalking Horse Bidder designation offers the consortium a leading position in the bidding process, providing a benchmark for other potential bidders while ensuring the value of Ebix Inc. is maximised.

The company stated that the Plan of Reorganisation, through which the acquisition will be effectuated, is being negotiated between the consortium, bidders, and major stakeholders of Ebix Inc. This process is being conducted under the Chapter 11 provisions, a section of the United States Bankruptcy Code that allows for reorganisation under bankruptcy laws. The Plan of Reorganisation aims to restructure Ebix Inc.’s obligations and ensure its emergence from Chapter 11 bankruptcy.

The Stalking Horse Plan Sponsor Agreement has the support of Ebix Inc.’s senior management, led by the CEO. This collaboration between the consortium and Ebix Inc.’s representatives is crucial for the successful implementation of the Plan of Reorganization. The consortium, leveraging the expertise and leadership of Eraaya Lifespaces Limited, is committed to working closely with Ebix Inc.’s management to navigate the complexities of the bankruptcy process and facilitate a smooth transition.

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