Ebix, an Atlanta-based company that designs software for insurance and health-care companies, said it has acquired Healthcare Magic, the company behind the round-the-clock “Ask a Doctor” online service.
The acquisition is the second this year for Ebix, which was almost acquired last year by Goldman Sachs for $820 million before a federal investigation into alleged false statements by Ebix to investors derailed the plans.
Ebix, which has denied the claims, has reached a settlement over the allegations mentioned in lawsuits and faces a June 5 hearing on the agreement, according to a filing with the U.S. Securities and Exchange Commission. The company estimates its potential liability at $4.23 million.
Ask a Doctor, a service with a network of about 15,000 physicians, allows consumers to go online or use their mobile devices to submit health-related questions. They can also attach pictures and upload lab reports. Doctors then respond with advice, within minutes.
Ebix acquired Healthcare Magic for $6 million, and the agreement includes an “earnout” provision of up to $12.5 million payable after two years. Earnout payouts generally are based on a business achieving certain future financial goals. Healthcare Magic’s major investor had been Accel Partners.
Ebix President and Chief Executive Officer Robin Raina said the company plans to market the “Ask” service to hospitals, which can make it available to doctors and patients. Healthcare Magic, which also has an Ask a Dietitian service, already offers its services to companies that provide wellness services to employees.
“We see health and wellness coaching emerging as one of the most exciting fields in the United States and beyond,” Robin said in announcing the deal. He said Ebix wants to create the world’s largest online exchange of health data between doctors and consumers.
Healthcare Magic handles an average of 130 queries an hour and relies on physicians in 50 specialties, including alternative medicine.
In the first quarter, Ebix completed its acquisition of CurePet for $6.35 million, with a contingent earnout payment of up to $5 million. CurePet is a provider of health information management software for the veterinary market.
Ebix said Healthcare Magic will be integrated into its A.D.A.M. Health Division.
