Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Schedule of Revenue by Product/Service Groups

Presented in the table below is the breakout of our revenue streams for each of those product/service groups for the years ended December 31, 2012 , 2011 and 2010.

	For the Year Ended
	December 31,
(dollar amounts in thousands)		2012		2011		2010
Exchanges		$	159,678	$	130,638	$	94,212
Broker Systems		18,612		18,006		13,841
Business Process Outsourcing (“BPO”)		16,140		14,944		15,586
Carrier Systems		4,940		5,381		8,549
Totals		$	199,370	$	168,969	$	132,188

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following table:

	Fair Values at Reporting Date Using*
Descriptions	Balance at December 31, 2012		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Available-for-sale securities:
Commercial bank certificates of deposits ($213 thousand is recorded in the long-term sections of the consolidated balance sheets)	$	1,184	$	1,184	$	—	$	—
Total assets measured at fair value	$	1,184	$	1,184	$	—	$	—
Liabilities
Derivatives:
Common share-based put option (a)	$	1,186	$	—	$	1,186	$	—
Foreign exchange contracts (b)	—		—		—		—
Contingent accrued earn-out acquisition consideration (c)	17,495		—		—		17,495
Total liabilities measured at fair value	$	18,681	$	—	$	1,186	$	17,495
(a) In connection with the acquisition of PlanetSoft effective June 1, 2012, Ebix issued a put option to the PlanetSoft's three shareholders. The put option, which expires in June 2014, is exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them to sell the underlying 296,560 shares of Ebix common stock they received as part of the purchase consideration, back to the Company at a price of $16.86 per share, which represents a 10% discount off of the per-share value established on the effective date of the closing of Ebix's acquisition of PlanetSoft. In accordance with the relevant authoritative accounting literature a portion of the total purchase consideration was allocated to this put liability based on its initial fair value, which was determined to be $1.4 million using a Black-Scholes model. The inputs used in the valuation of the put option include term, stock price volatility, current stock price, exercise price, and the risk free rate of return.
(b) The market valuation approach is applied and the valuation inputs include foreign currency exchange spot rates, forward premiums, forward foreign currency exchange rates, term, and maturity dates. As of December 31, 2012 all the Company's derivative instruments in the form of foreign currency hedge instruments had been settled.
(c) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments.
* During the year ended December 31, 2012 there were no transfers between fair value Levels 1, 2 or 3.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the year.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Contingent Liability for Accrued Earn-out Acquisition Consideration
	(in thousands)
Beginning balance at January 1, 2012	$	7,590
Total remeasurement adjustments:
(Gains) or losses included in earnings **	(699		)
(Gains) or losses recorded against goodwill	—
Foreign currency translation adjustments ***	(143		)
Acquisitions and settlements
Business acquisitions	16,258
Settlements	(5,511		)
Ending balance at December 31, 2012	$	17,495
The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end.	$	(802	)
** recorded as an adjustment to reported general and administrative expenses
*** recorded as a component of other comprehensive income within stockholders' equity

Fair Value, Significant Unobservable Inputs Used in Measurement of Contingent Consideration Liabilities

The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows:

(in thousands)	Fair Value at  December 31, 2012	Valuation Technique	Significant Unobservable Input
Contingent acquisition consideration: (USIX, HealthConnect, Taimma, PlanetSoft, and TriSystems acquisitions)	$17,495	Discounted cash flow	Annualized revenue and probability of achievement

Schedule of Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows:

	December 31, 2012		December 31, 2011
	(in thousands)
Beginning Balance	$	259,218	$	180,602
Additions, net (see Note 3)	67,401		80,259
Foreign currency translation adjustments	129		(1,643		)
Ending Balance	$	326,748	$	259,218

Schedule of Finite-Lived Intangible Assets by Major Class, Estimated Useful Lives

We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:

	Life
Category	(yrs)
Customer relationships	7-20
Developed technology	3-12
Trademarks	3-15
Non-compete agreements	5
Database	10

Schedule of Intangible Assets, Excluding Goodwill

Intangible assets as of December 31, 2012 and December 31, 2011, are as follows:

	December 31,
	2012			2011
	(In thousands)
Finite-lived intangible assets:
Customer relationships	$	57,638		$	40,289
Developed technology	14,025			11,640
Trademarks	2,638			2,188
Non-compete agreements	538			418
Backlog	140			140
Database	212			207
Total intangibles	75,191			54,882
Accumulated amortization	(22,600		)	(16,496		)
Finite-lived intangibles, net	$	52,591		$	38,386
Indefinite-lived intangibles:
Customer/territorial relationships	$	30,887		$	30,453

Useful Lives of Property and Equipment Used in Computation of Depreciation

The estimated useful lives applied by the Company for property and equipment are as follows:

	Life
Asset Category	(yrs)
Computer equipment	5
Furniture, fixtures and other	7
Buildings	30
Leasehold improvements	Life of the lease