ItzCash parent Ebix has entered into an agreement to acquire the Money Transfer Service Scheme (MTSS) business of Transcorp International. As per the official statement, the acquisition has been made through one of its Indian subsidiaries, EbixCash, for around $7.4 Mn.\r\nThe agreement has already received the approval of the Transcorp International Board and is currently awaiting the nod of shareholders and regulatory authorities. The deal is expected to be finalised within the next 45 to 60 days.\r\nCommenting on the development, Transcorp International Chairman and MD Ashok Aggarwal said, \u201cEbixCash has established a dominant customer friendly international remittance business in India with a reach that is many times larger than any other MTSS player in the marketplace. We genuinely believe that EbixCash is a logical home for Transcorp MTSS assets, as it complements EbixCash\u2019s financial exchange portfolio perfectly, opening up tremendous cross-selling opportunities on both sides. We are excited about the possibilities this offers for our partners and customers both.\u201d\r\nAccording to the Ebix spokesperson, the transaction was funded using its internal cash reserves. Ebix did not use any investment bankers for the transaction.\r\nWith this acquisition, the US-headquartered Ebix looks to significantly increase its revenue, while also strengthening its leadership position in the Indian financial exchanges market. Furthermore, it will help increase EbixCash\u2019s financial exchange reach to 231.5K physical distribution outlets.\r\nSpeaking about the acquisition, Ebix Chairman, President and CEO Robin Raina said, \u201cFollowing up on other MTSS assets acquisitions in the last few months, the acquisition of Transcorp International MTSS assets is a logical step forward in our efforts to expand our presence in the financial exchange markets in India. It will help establish EbixCash as an undisputed market leader, by leaps and bounds, in the inward international remittance exchange business. Also, the consolidation of Transcorp MTSS assets into our existing Financial Exchange infrastructure will further enhance our operating margins.\u201d\r\nIncidentally, this is Ebix\u2019s fourth remittance-related acquisition, following the announcement of the acquisition of YouFirst Money Express in August 2017 and the asset purchases of UP-based Wall Street Finance Ltd for $7.4 Mn and Paul Merchants Limited in September.\r\nLater in October, the ItzCash parent also acquired Bengaluru-based omni-channel online travel and assisted ecommerce exchange, Via.com. The move was geared towards expanding Ebix\u2019s distribution network to more than 224K outlets across Southeast Asia.\r\nAs stated by Raina, Ebix intends to consolidate all these acquisitions into its EbixCash Financial Exchange operations, bringing significant synergies and reducing redundancies to the combined operation.\r\n\r\nTranscorp: 7500 Distribution Outlets, 40 Branches, 1.7 Mn Annual Transactions\r\nWith a head office in Jaipur, Transcorp International is a diversified conglomerate having prominent interests in international money transfer, foreign exchange, investments, insurance, and tours and travels.\r\nUnder the aegis of specific RBI licenses, Transcorp offers international money transfer and forex services from its widespread inward remittance exchange network, which encompasses 7,500 distribution outlets, 40 branches and processes approximately 1.7 Mn transactions per annum.\r\nIt claims to control the fifth largest share of the Indian MTSS market, apart from boasting a 10% share of Western Union's inward remittance flows in the country.\r\n\r\nItzCash Parent Ebix: Overview\r\nWith 40 offices spread across Australia, Brazil, Canada, New Zealand, Singapore, the US, India and the UK, Ebix provides end-to-end software and ecommerce solutions to clients in different verticals, including insurance, finance, healthcare and e-governance. It assists companies in building infrastructure exchanges, front- and back-end enterprise frameworks and risk compliance systems.\r\nEbix also offers SaaS-based software development solutions, support and consultancy to clients on six continents. As claimed by its spokesperson, the company has conducted in excess of $100 Bn in insurance premiums annually on its platforms.\r\nLaunched in 2006, EbixCash, an Ebix Group initiative, is a financial exchange operating in India. With an expansive presence that combines 231.5K physical distribution outlets and an omnichannel online digital platform, EbixCash has established an enterprise financial exchange portfolio spread across money remittance (domestic and international), travel, prepaid and gift cards, utility payments, etc.\r\nThe company claims to have a domestic remittance volume of approximately $100 Mn per month. It currently processes up to 600K transactions per day and approximately $2 Bn in annual payment volume.\r\nEbixCash, through its travel portal Via.com, also has a presence in the Southeast Asian online travel sector, with over 110K distribution outlets and 8,000 corporate clients and more than 24.5 Mn yearly transactions.\r\nEarlier, Ebix acquired an 80% stake in ItzCash in May 2017. The funding, which was done at a valuation of $150 Mn, allowed Ebix to assume majority shareholder status in ItzCash. As part of the deal, existing investors Matrix Partners, Lightspeed Venture Partners and Intel Capital exited for returns between 3X-5X.\r\nAt the time, it was reported that Ebix was looking to foray into areas such as credit, insurance, healthcare and investments to accelerate growth momentum. Having reportedly deployed 25,000 point-of-sale machines in the last few months, the company now intends to deploy 100K POS machines by the end of 2017.\r\nThe firm is also looking to expand ItzCash\u2019s operations to markets like Australia and Brazil where Ebix already has a strong distribution network. Ebix is currently in the process of extending the reach of its health content exchanges in India. The latest Transcorp International acquisition is geared towards facilitating Ebix\u2019s growth in the Indian remittance market, which is valued at over $62.7 Bn.