After Yatra, Ebix sets sights on debt-hit IT firm Trimax

New Delhi: Nasdaq-listed Ebix Inc has made a bid for Mumbai-based Trimax IT Infrastructure & Services, which is undergoing bankruptcy proceedings after it defaulted on Rs 1,800 crore of loans, two people directly briefed on the matter said.The US software company’s latest offer to buy an Indian business comes less than a fortnight after it agreed to acquire Gurgaon-based travel portal Yatra Online in an allstock deal. In the past two years, it has spent about $1 billion shopping for companies in India.Ebix is holding discussions with a consortium of lenders led by State Bank of India, the people said. The lenders took Trimax to the bankruptcy court after failed attempts to restructure its debt two years back.Financial terms of the bid could not be ascertained. But one of the people said the negotiations were veering around the upfront payment that Ebix had offered to the lenders. The lenders are unhappy with the terms of the offer, the person added. 70458415 Avil Menezes, the resolution professional appointed by the National Company Law Tribunal to manage Trimax’s bankruptcy proceedings, declined to comment when contacted. Ebix and SBI didn’t respond to requests for comment until press time Tuesday.Trimax is founded by first-generation entrepreneur Surya Prakash Madrecha and is backed by Aditya Birla Private Equity.The company provides IT infrastructure support to state-run banks such as Bank of Baroda, Central Bank, Canara Bank, Oriental Bank of Commerce and IDBI Bank. It also has multi-city contracts with state-run telecom company Bharat Sanchar Nigam Ltd for the rollout of wifi networks in public spaces.The company also operates two data centres and has operations in Singapore through a wholly owned subsidiary.Ebix had submitted a proposal to acquire a majority stake in the company in October 2017 as well, the people said. Its offer then was to infuse nearly Rs 300 crore in Trimax and pay a part of banks’ dues. Trimax posted Rs 2,000 crore of sales in fiscal 2017. Sales halved in the subsequent year, as it faced a financial crunch due to a pile-up of receivables and inability to service loans.Aditya Birla PE had invested around Rs 100 crore in Trimax seven years ago. Zephyr Peacock, another private equity fund, is also an investor. Founder Madrecha attempted to provide the investors an exit five years ago through an IPO, but the plan did not materialise.Ebix has made as many as 17 acquisitions in India before it agreed to acquire Yatra.com. The company had also submitted a bid for bankrupt Educomp Solutions, but may withdraw that offer. It is considering an IPO for some of its India businesses this calendar year.

from Economic Times https://ift.tt/2Zv7M8R