Aliso Viejo-based PlanetSoft Inc., a maker of financial software, has been acquired by an Atlanta software and e-commerce company for $40 million in a cash and stock deal.
Under terms of the agreement, Ebix Inc. will acquire all outstanding stock of PlanetSoft for $35 million in cash and $5 million in common stock. Additional earn outs could prop up the price if certain revenue targets are hit in the next two years.
The deal is expected to close in the next week and immediately contribute to Ebix earnings, the company said Tuesday.
PlanetSoft’s software automates business processing and underwriting for insurance and financial services companies, improves customer relationships and background checks, speeds up electronic policy deliveries, collects licensing information and routes workflow.
The company counts as customers many of the largest life insurance companies in the U.S. and India, including Swiss RE, MassMutual, Liberty Mutual, Manulife Financial and New York Max Life.
PlanetSoft employs about 575 people companywide.
Some 520 employees are based in four offices in India, with executive offices in Aliso Viejo and smaller operations in New Hampshire.
Ebix had sales of $169 million in 2011, up 28% from a year earlier.
Its shares, traded on the Nasdaq, were up less than 1% on Tuesday to a market value of about $618 million.
