Shares of Ebix Inc. (EBIX) plummeted 54.6% in premarket trading on Monday, reaching a 17-year low for the company. This drastic decline comes after the Georgia-based provider of on-demand software for various industries, including insurance, financial services, travel, and healthcare, filed for bankruptcy. Despite this setback, Ebix states that it will continue to operate “normally,” reassuring its customers and stakeholders.
Zinnia to Acquire North American Assets
In an effort to regain stability, Ebix has entered into a “stalking horse” agreement to sell its North American life and annuity assets for a sum of $400 million to Zinnia. This deal has been reached prior to an auction. To facilitate the sale process, Ebix has enlisted Jefferies LLC as its advisor.
Market Impact
If current trends persist, Ebix’s stock is expected to open at its lowest price since October 2006. Moreover, this plunge represents the largest one-day percentage loss for the company since going public in 1987. As of Friday, the stock had already suffered a 75.3% decline year to date, while the S&P 500 had experienced a 22.9% rally.
Despite these challenging circumstances, Ebix remains committed to serving its customers and preserving its status as a prominent player in its respective industries.
