Pro Forma Financial Information (re: 2017 and 2016 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 pertains to all of the Company's acquisitions made during 2017 and 2016, which includes the acquisitions of the ItzCash, YouFirst, Wall Street, Paul Merchants,Via, the acquisition of assets of beBetter in 2017, and the acquisition of Wdev, the acquisition of assets of Hope Health, taking a controlling position in the EbixHealth JV with IHC in 2016 as presented in the table below, and 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 2017 and 2016 pro forma financial information below assumes that all such business acquisitions were made on January 1, 2016, whereas the Company's reported financial statements for 2017 only includes the operating results from the businesses since the effective date that they were acquired by Ebix, and thusly includes only nine months of ItzCash, seven months of beBetter, four months of YouFirst, three months of Wall Street, two months of Paul Merchants, and two months of Via. Similarly, the 2016 pro forma financial information below includes a full year of results for Wdev, Hope Health, and EbixHealth JV as if they had been acquired on January 1, 2016, whereas the Company's reported financial statements for the 2016 includes only two months of Wdev, two months of Hope Health, and six months of the EbixHealth JV.



	As Reported 2017		Pro Forma 2017		As Reported 2016		Pro Forma 2016
			(unaudited)				(unaudited)
	(In thousands, except per share amounts)
Revenue	$	363,971	$	440,512	$	298,294	$	434,152
Net income attributable to Ebix, Inc.	$	100,618	$	104,851	$	93,847	$	96,147
Basic EPS	$	3.19	$	3.32	$	2.88	$	2.95
Diluted EPS	$	3.17	$	3.31	$	2.86	$	2.93

In the above table, the unaudited pro forma revenue for the year ended December 31, 2017 increased by $6.4 million from the unaudited pro forma revenue for 2016 of $434.2 million to $440.5 million, representing a 1.5% increase, with the change in exchange rates postively affecting reported revenues by $2.1 million. The reported revenue in the amount of $364.0 million for the year ended December 31, 2017 increased by $65.7 million or 22.0% from the $298.3 million of reported revenue for the year ended December 31, 2016. The cause for the difference between the 22.0% increase in reported 2017 revenue versus 2016 revenue, as compared to the 1.5% increase in 2017 pro forma versus 2016 pro forma revenue is due to the effect of combining the additional revenue derived from those businesses acquired during the years 2017 and 2016, specifically ItzCash, YouFirst, Wall Street, Paul Merchants,Via, beBetter, Wdev, Hope Health, and the EbixHealth JV with the Company's pre-existing operations. The 2017 and 2016 pro forma financial information assumes that all such business acquisitions were made on January 1, 2016, whereas the Company's reported financial statements for 2017 only includes the operating results from the businesses since the effective date that they were acquired by Ebix, and thus includes only nine months of ItzCash, seven months of beBetter, four months of YouFirst, three months of Wall Street, two months of Paul Merchants, and two months of Via.

The above pro forma analysis is based on the following premises:


•	2017 and 2016 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 is 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.


•	The impact from fluctuations of the exchange rates for the foreign currencies in the countries in which we conduct operations also partially affected reported revenues. During each of the years 2017 and 2016 the change in foreign currency exchange rates increased (decreased) reported consolidated operating revenues by $2.1 million and $(3.3) million, respectively.