Aliso Viejo-based PlanetSoft Inc., a developer of financial software, has been acquired by an Atlanta software and e-commerce company for $40 million in cash and stock.
Ebix Inc., which markets software to the insurance industry, will acquire all outstanding shares of PlanetSoft for $35 million in cash and $5 million in common stock. Potential additional cash payments are tied to revenue targets in the next two years.
The deal, announced last week, was expected to close in the next several days and will immediately contribute to Ebix earnings, officials said.
PlanetSoft’s software automates business processing and underwriting for insurance and financial services companies and is used in client services, distribution management and other areas.
The company’s customers include some 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, including 520 employees based in four offices in India. Executive offices are in Aliso Viejo, with 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 June 5 after the deal was announced to a market value of about $618 million.
