Minority Business Investment

12 Months Ended

Dec. 31, 2015

Investments, All Other Investments [Abstract]

Minority Business Investment

Minority Business Investment

During 2012, Ebix acquired a minority 19.8% interest in CurePet, Inc. ("CurePet") for cash consideration in the amount of $2.0 million. CurePet was a developmental-stage enterprise that completed an insurance exchange that connects pet owners, referring veterinarians, animal hospitals, academic institutes, and suppliers of medical and general pet supplies, while providing a wide variety of services related to pet insurance to each constituent including practice management, electronic medical records, and billing. CurePet had previously been a customer of Ebix, and as such during 2014 the Company recognized $1.2 million of revenue from CurePet. The Company accounted for its minority investment in CurePet using the cost method. Based on this independent evaluation it was concluded that the fair value of this minority business investment was greater than the Company's carrying value of the investment, and therefore the investment was not impaired as of December 31, 2013. As disclosed in Note 3 "Business Acquisitions", effective January 27, 2014, Ebix acquired the entire business of CurePet in an asset purchase agreement with the total purchase consideration being in the amount of $6.35 million of which $5.0 million pertains to a contingent earnout liability based on earned revenues over the subsequent thirty-six month period following the date of the acquisition. This contingent earnout liability is estimated to have a fair value of zero at December 31, 2015. During the twelve months ended December 31, 2014 the CurePet business generated $324 thousand of revenue, which is included in the Company’s consolidated revenues reported for that the same period. As is disclosed in Note 21 "Investment in Joint Venture", Ebix contributed certain portions of its CurePet investment, valued by the Ebix Health Solutions, LLC joint venture at $2.0 million, for its 40% membership interest in the Ebix Health Solutions, LLC joint venture.