US Based Ebix Eyeing Debt-hit IT Firm Trimax

US-based Ebix, supplier of on-demand software and e-commerce services to the insurance, healthcare, financial and e-learning industries, has made its way to Mumbai-based Trimax IT Infrastructure and Services firm. The firm is undergoing bankruptcy proceedings once it defaulted on Rs 1,800 large crore of loans, two individuals directly briefed on the matter aforementioned.

The US software company’s latest offer to shop for an Indian business comes less then a fortnight after it agreed to take over Gurgaon-based travel portal Yatra on-line in an all-stock deal. Within the past two years, it has spent around $ 1 billion for buying companies in India.

Ebix is holding discussions with a pool of lenders led by State Bank of India, the individuals said. The lenders took Trimax to the bankruptcy court after unsuccessful tries to structure its debt two years back.

Financial terms of the bid couldn't be determined. However, one among the individuals aforementioned the negotiations were turning around the upfront payment that Ebix had offered to the lenders. The lenders are unsatisfied with the terms of the provider, the person added.

Avil Menezes, the resolution professional appointed by the National Company Law Tribunal to manage Trimax’s bankruptcy proceedings, declined to comment once contacted. Ebix and SBI didn’t reply to requests for comment till press time on Tuesday.

Trimax is set up by first-generation enterpriser Surya Prakash Madrecha and is backed by Aditya Birla Private Equity.

The company offer IT infrastructure to state-run bank like Bank of Baroda, Central Bank, Canara Bank, Oriental Bank of Commerce and IDBI Bank. It additionally has multi-city contracts with state-run telecommunication company Bharat Sanchar Nigam Ltd for the rollout of WiFi networks in public areas.

The company additionally operates two data centres and has operations in Singapore through an entirely owned subsidiary.

Ebix had submitted a proposal to acquire a majority stake within the company in October 2017. Its proposal then was to infuse nearly Rs. 300 crore in Trimax and pay a share of banks’ dues. Trimax announced Rs. 2,000 large crore of sales in the fiscal year 2017. Sales halved within the ensuant year, as it round-faced a money crunch because of a pile-up of receivables and inability to service loans.

Aditya Birla PE had invested with around Rs. 100 crore in Trimax seven years ago. Zephyr Peacock, another private equity fund, is an investor too. Founder Madrecha tried to provide the investors an exit five years ago through an IPO, however, the plan didn't work out.

Ebix has created as several as seventeen acquisitions in India before it agreed to acquire Yatra.com. The firm had also submitted a bid for bankrupt Educomp Solutions, however, might withdraw that offer. It is considering an IPO for a few of its India businesses this calendar year.

With operations in 50-plus countries, Ebix today has around 9,000 employees, and their number is slated to go up to 12,000 in the next few months.