Pro Forma Financial Information (re: 2012 and 2011 acquisitions)

This unaudited pro forma financial information is provided for informational purposes only and does not project the Company’s results of operations for any future period.

The aggregated unaudited pro forma financial information pertaining to the all of the Company's acquisitions made during 2011 and 2012, which includes the acquisitions of ADAM, HealthConnect, BSI, Taimma, PlanetSoft, Fintechnix, and TriSystems as presented in the table below is provided for informational purposes only and does not project the Company's expected results of operations for any future period. No effect has been given in this pro forma information for future synergistic benefits that may still be realized as a result of combining these companies or costs that may yet be incurred in integrating their operations. The 2012 and 2011 pro forma financial information below assumes that all such business acquisitions were made on January 1, 2011, whereas the Company's reported financial statements for 2012 only includes the operating results from the businesses since the effective date that they were acquired by Ebix, and includes seven months of actual financial results of PlanetSoft, seven months of Fintechnix, five months of TriSystems, nine months of BSI and nine months of Taimma. Similarly, the 2011 pro forma financial information below includes a full year of results for PlanetSoft and ADAM as if they had been acquired on January 1, 2011, whereas the Company's reported financial statements for the year ended December 31, 2011 only includes the actual financial results of ADAM since the effective date of its acquisition on February 7, 2011 and only 1.5 months of HealthConnect, and no revenue from Planetsoft.



	As Reported 2012		Pro Forma 2012		As Reported 2011		Pro Forma 2011
			(unaudited)				(unaudited)
	(In thousands, except per share amounts)
Revenue	$	199,370	$	212,360	$	168,969	$	209,748
Net Income	$	70,569	$	70,086	$	71,378	$	72,391
Basic EPS*	$	1.91	$	1.89	$	1.89	$	1.88
Diluted EPS*	$	1.80	$	1.79	$	1.75	$	1.74

In the above table, the unaudited pro forma revenue for the year ended December 31, 2012 increased by $2.6 million from the unaudited pro forma revenue for 2011 of $209.7 million to $212.4 million , representing a 1.2% increase. Correspondingly, the reported revenue for the year ended December 31, 2011 increased by $30.4 million or 18.0% from the reported revenue during the same period in 2011.

The above proforma analysis is based on the following premises:


•	2011 and 2012 pro forma revenue contains actual revenue of the acquired entities before acquisition date, as reported by the sellers, as well as actual revenue of the acquired entities after acquisition. Growth in revenues of the acquired entities after acquisition date are only reflected for the period after their acquisition.


•	Revenue billed to existing clients from the cross selling of acquired products has been assigned to the acquired section of our business.


•	Any existing products sold to new customers acquired through the acquisition customer base, has also been assigned to the acquired section of our business.


•	2011 pro forma revenues include revenues from some product lines whose sale was discontinued after the acquisition date and revenues from some customers whose contracts were discontinued. This is typically done for efficiency and/or competitive reasons.