Vikas Lifecare Limited (VLL) has provided a significant update on its ongoing acquisition deal with Ebix Inc., marking a crucial milestone in the strategic transaction. The consortium led by Eraaya Lifespaces Limited has successfully remitted an amount of USD 12 million (approximately INR 101 crores) as part of the acquisition process. This is in addition to the earlier payments made by the consortium, which included a USD 7.25 million (approximately INR 61.50 crores) cash deposit and a subsequent remittance of USD 2.5 million (approximately INR 21 crores). To date, the consortium has deposited a total of USD 21.75 million (approximately INR 181 crores) towards acquiring 100% of the equity of Ebix Inc.

Context and Significance of the Acquisition:
This acquisition is being effectuated through a Plan of Reorganization under the Chapter 11 provisions, a structured and regulated process designed to facilitate the financial reorganization of Ebix Inc. The Plan Support Agreement submitted by the consortium, with Vikas Lifecare Limited as the Stalking Horse Bidder, has received approval from the Independent Directors of Ebix Inc. This agreement has garnered the support of Ebix Inc.'s senior management, including the CEO, and is a testament to the confidence in the consortium's ability to successfully navigate and complete the acquisition.

Financial Commitment and Future Remittances:
In a clear demonstration of its commitment to the acquisition, the consortium has announced its plans to remit an additional USD 35 million (approximately INR 293 crores) by July 2024. This brings the total financial commitment to USD 47 million (approximately INR 393 crores), underscoring the consortium's robust financial backing and strategic intent.

Strategic Goals and Collaborative Efforts:
The primary objective of this acquisition is to reorganize and stabilize Ebix Inc., ensuring its emergence from Chapter 11 as a financially healthy and operationally robust entity. The Stalking Horse Plan Sponsor Agreement outlines a collaborative approach, with the consortium working closely with Ebix Inc. representatives and major stakeholders to achieve a successful reorganization.

Details of the Acquisition Process:

• Nature of Transaction: The acquisition will be conducted through a Plan of Reorganization under Chapter 11 provisions, involving negotiations between the bidders and major stakeholders of Ebix Inc.

• Timeline: The consortium plans to remit the remaining USD 35 million within July 2024, following the initial payments already made.

• Support and Collaboration: The Plan Support Agreement has the backing of Ebix Inc.'s senior management, ensuring a collaborative effort to achieve the reorganization goals.

Background of Vikas Lifecare Limited and Eraaya Lifespaces Limited:
Vikas Lifecare Limited is a well-established entity with a diverse portfolio, while Eraaya Lifespaces Limited is known for its significant contributions to various industry sectors. Together, they lead the consortium that is spearheading this strategic acquisition.

Conclusion:
The acquisition of Ebix Inc. by the consortium led by Vikas Lifecare Limited and Eraaya Lifespaces Limited represents a strategic move to stabilize and reorganize a key player in the market. The remittance of USD 12 million, with an additional USD 35 million to follow, demonstrates the consortium's commitment and financial capability. This acquisition, supported by the senior management of Ebix Inc., aims to navigate the complexities of Chapter 11 reorganization and achieve a successful outcome, benefiting all stakeholders involved.

As the process unfolds, the strategic vision and collaborative efforts of the consortium are expected to bring about a positive transformation for Ebix Inc., ensuring its continued growth and success in the industry. The focus on reorganization under Chapter 11 provisions highlights the structured approach being taken to address financial challenges and pave the way for a sustainable future. This acquisition not only strengthens Vikas Lifecare Limited's portfolio but also underscores its strategic foresight in navigating complex transactions and fostering growth through strategic acquisitions.

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