Pro Forma Financial Information (re: 2016 and 2015 acquisitions)

This unaudited pro forma financial information is provided for informational purposes only and does not project the Company’s results of operations for any future period.

The aggregated unaudited pro forma financial information pertains to all of the Company's acquisitions made during 2016 and 2015, which includes the acquisition of Wdev Solucoes em Technologia SA, the acquisition of assets of IHAC, Inc., d.b.a Hope Health ("Hope"), taking a controlling position in the Ebix Health Exchange Holdings, LLC Joint Venture with Independence Holdings Corporation in 2016, and the acquisitions of Via Media Health and PB Systems in 2015 as presented in the table below, and is provided for informational purposes only and does not project the Company's expected results of operations for any future period. No effect has been given in this pro forma information for future synergistic benefits that may still be realized as a result of combining these companies or costs that may yet be incurred in integrating their operations. The 2016 and 2015 pro forma financial information below assumes that all such business acquisitions were made on January 1, 2015, whereas the Company's reported financial statements for 2016 only includes the operating results from the businesses since the effective date that they were acquired by Ebix, and thusly includes only two months of Wdev Solucoes em Technologia SA, two months of Hope Health ("Hope"), and six months of the Ebix Health Exchange Holdings, LLC Joint Venture. Similarly, the 2015 pro forma financial information below includes a full year of results for Via Media Health and PB Systems as if they had been acquired on January 1, 2015, whereas the Company's reported financial statements for the 2015 includes ten months of financial results for Via Media Health and seven months for PB Systems.



	As Reported 2016		Pro Forma 2016		As Reported 2015		Pro Forma 2015
			(unaudited)				(unaudited)
	(In thousands, except per share amounts)
Revenue	$	298,294	$	315,820	$	265,482	$	295,290
Net income attributable to Ebix, Inc.	$	93,847	$	95,326	$	79,533	$	84,624
Basic EPS	$	2.88	$	2.92	$	2.29	$	2.44
Diluted EPS	$	2.86	$	2.90	$	2.28	$	2.42

In the above table, the unaudited pro forma revenue for the year ended December 31, 2016 increased by $20.5 million from the unaudited pro forma revenue for 2015 of $295.3 million to $315.8 million , representing a 7.0% increase, with the change in exchange rates adversely affecting reported revenues by ($3.3) million. The reported revenue in the amount of $298.3 million for the year ended December 31, 2016 increased by $32.8 million or 12.4% from the $265.5 million of reported revenue for the year ended December 31, 2015. The cause for the difference between the 12.4% increase in reported 2016 revenue versus 2015 revenue, as compared to the 7.0% increase in 2016 pro forma versus 2015 pro forma revenue is due to the effect of combining the additional revenue derived from those businesses acquired during the years 2016 and 2015, specifically Wdev Solucoes em Technologia SA, Hope Health ("Hope"), Ebix Health Exchange Holdings, LLC Joint Venture, Via Media Health, and PB Systems with the Company's pre-existing operations. The 2016 and 2015 pro forma financial information assumes that all such business acquisitions were made on January 1, 2015, whereas the Company's reported financial statements for 2016 only includes the operating results from the businesses since the effective date that they were acquired by Ebix, and thus includes only two months of Wdev Solucoes em Technologia SA, two months of Hope, and six months of the fully consolidated Ebix Health Exchange Holdings, LLC Joint Venture.

The above pro forma analysis is based on the following premises:


•	2016 and 2015 pro forma revenue contains actual revenue of the acquired entities before acquisition date, as reported by the sellers, as well as actual revenue of the acquired entities after acquisition. Growth in revenues of the acquired entities after acquisition date are only reflected for the period after their acquisition.


•	Revenue billed to existing clients from the cross selling of acquired products has been assigned to the acquired section of our business.


•	Any existing products sold to new customers acquired through the acquisition customer base, has also been assigned to the acquired section of our business.


•	2015 pro forma revenues include revenues from some product lines whose sale was discontinued after the acquisition date and revenues from some customers whose contracts were discontinued. This is typically done for efficiency and/or competitive reasons.


•	The impact from fluctuations of the exchange rates for the foreign currencies in the countries in which we conduct operations also partially affected reported revenues. During each of the years 2016, 2015 and 2014 the change in foreign currency exchange rates decreased reported consolidated operating revenues by $(3.3) million, $(10.7) million, and $(3.2) million, respectively.