XML 48 R29.htm IDEA: XBRL DOCUMENT v2.4.1.9
Subsequent Events
12 Months Ended
Dec. 31, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

Dividends
The Company continued with its quarterly cash dividend to the holders of its common stock, whereby a dividend in the amount of $0.075 per common share will be paid March 16, 2015 to shareholders of record on February 27, 2015.

Repurchases of Common Stock
Since December 31, 2014 and through March 16, 2015 the Company has purchased an additional 929,976 shares of its outstanding common stock for aggregate consideration in the amount of $22.28 million. All share repurchases were done in accordance with Rule 10b-18 of the Securities Act of 1934 as to the timing, pricing, and volume of such transactions, and were completed using available cash resources and cash generated from the Company's operating activities.

IRS Audit Resolution
On January 6, 2015, Ebix announced that it had reached a resolution with the Internal Revenue Service with respect to the previously disclosed audit of Ebix’s income tax returns for the taxable years 2008 through 2012. The original audit was extended to 2012, which is now part of that resolution dated December 30, 2014. The assessment resulted in a January 2015 cash payment of $20.5 million, including interest of $1.6 million, and a ($1.5) million impact on net income for the fourth quarter of 2014 after taking into account certain of the Company’s previously established and disclosed provisions for uncertain tax positions. This resolution includes all issues for the taxable years 2008 through 2012. The balance of this assessment is included in accounts payable and accrued liabilities in the Company's Consolidated Balance Sheet.

Director Grants
On January 12, 2015, the board of directors granted the Company's seven non-employee directors a total of 42,000 stock options of which one-fourth will vest on January 12, 2016, and the remaining options will vest ratably each quarter in the years 2016, 2017, 2018 and 2019. Such grants were made pursuant to board's policy.

Amendment to Syndicated Commercial Banking Credit Agreement
On February 3, 2015, Ebix, Inc. (the “Company”) and certain of its subsidiaries entered into the First Amendment (the “First Amendment”) to the Regions Secured Credit Facility (the “Credit Agreement”), dated August 5, 2014, among the Company, Regions Financial Corporation as Administrative Agent (“Regions”), with Regions, MUFG Union Bank N.A., and Silicon Valley Bank as joint lenders. The First Amendment amends the Credit Agreement by increasing the maximum amount by which the Aggregate Revolving Commitments may be increased to $90 million from the pre-existing limit of $50 million, increases the amount of base facility to $190 million from the pre-existing amount of $150 million, which together with the $50 million accordion feature increases the total Credit Agreement capacity amount to $240 million from the prior amount of $200 million, and expands the syndicated bank group to four participants by adding Fifth Third Bank.

Business Acquisition
On March 3, 2015 Ebix announced the acquisition of Via Media Health Communications Private Limited ("Via Media Health"), effective March 1, 2015. Via Media Health is one of India’s leading health content & communication companies. Ebix acquired Via Media Health for upfront cash consideration in the amount of $1.24 million, plus a possible future one time contingent earnout payment of up to $372 thousand based on earned revenues over the subsequent twelve month period following the effective date of the acquisition, and a possible one time future performance bonus depending upon revenue growth realized in the business over the subsequent twenty-four month period following the effective date of the acquisition.

Land Acquisition
On January 30, 2015 the Company acquired approximately six acres of land adjacent to its new worldwide headquarters facility being built out in Johns Creek, Georgia. The Company paid $2.0 million for the land and funded the purchase from proceeds from its revolving commercial banking credit facility.