Centrum Group sells forex biz to Ebix for Rs 1,200 cr

Mumbai, Apr 3 (PTI) Diversified financial servicesplayer Centrum Group has decided to exit the forex businessunder brand name Centrum Direct by selling it to Atlanta-basedEbix Inc for around Rs 1,200 crore.Nasdaq-listed Ebix has over 50 offices across fivecontinents and offers on-demand software and e-commerceservices to insurance, financial and healthcare industries.As part of the deal, the entire Centrum Direct teamand assets will be transferred to Ebix and will become a partof EbixCash, an end-to-end financial exchange, the JaspalBindra-led company said in a statement today.The deal, subject to shareholder and regulatoryapprovals, is expected to be closed in 60 days.It can be noted that in 2017, Centrum had divested18.5 per cent of its stake in Centrum Direct to a group ofprivate equity investors including Jacob Ballas, New York Lifeand Evolvence.City-based Centrum Direct, which handled transactionsworth Rs 10,000 crore in FY18, has a customer base of over 3million and offers services like sale and purchase of forex,overseas remittances, travel cards and travelers cheques.It operates 165 outlets in 55 cities and is thelargest airport forex player with a presence in 24 domesticairports.Commenting on the sale, group chairman Jaspal Bindrasaid though the money exchange business has seen sustainedgrowth, consolidation and margin pressures are expected to bemajor disruptors in this business as more customers opt to dodigital transactions."The proceeds from the sale will provide us with asignificant resource base to strengthen our core businesses ofwealth management, institutional and retail broking,investment banking, insurance and lending verticals along withidentifying strategic opportunities for growth," he said.Robin Raina, chairman of Ebix, said, "The acquisition provides us with new abilities in niche financial exchange sectors while expanding our footprint in India. We have been eager to take up a strong position in India's airports and shipping ports."

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