Black Dragon sells stake in Indus to Ebix for $29m

Private equity firm Black Dragon Capital has sold its share in Indus Software Technologies to Ebix, in a deal worth $29m.

This deal value includes a $5m contingent earnout. Black Dragon initially acquired Indus in 2015 for an undisclosed amount. Since the company was acquired by Black Dragon it has grown revenues by 65 per cent and adjusted its EBITDA by 90 per cent, according to the company.

India-based Indus is a lending software developer for financial institutions, as well as auto finance and telecom companies. The company’s software helps banks and lenders with their auto, mortgage, credit card, education, consumer, gold and personal loans, among others.

Its technology is implemented with over 150 enterprises and across more than 50 countries, but 56 per cent of its revenue comes from operations in India. For the financial year 2017, Indus’ revenues reached $22m and an it had an EBITDA of around 17 per cent.

Black Dragon Capital partner Tim Greenfield said, “The Indus management team worked closely with Black Dragon and its advisors to accelerate growth and profits by expanding into new categories and geographies and launching new products.

“We executed and validated our Playbook focusing the business on the highest growth product sectors and regions and implementing a performance culture to deliver above market growth.”

Last year, Ebix acquired an 80 per cent share in Indian payments service ItzCash paying $120m for the stake. ItzCash operates in the prepaid cards and bill payments space across multiple sectors and claims to be the only profitable payments solution provider in the region.

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