UPDATE 1-Ebix to buy health technology services co for $66 mln

Mon Aug 30, 2010 11:40am EDT

* Says deal to add $0.15 to EPS in the first year

* Ebix shares down 2 pct

* ADAM shares up as much 81 pct at nearly two-year high

Aug 30 (Reuters) - Ebix Inc (EBIX.O), a software supplier to insurance industry, said it will buy ADAM Inc ADAM.O for $66 million to expand its operations in the health insurance sector.

Under the all-stock deal, shareholders of ADAM, a software and services provider to the healthcare industry, will receive 0.3122 of Ebix stock for each share held in ADAM, Ebix said.

The transaction is expected to add to earnings immediately and boost earnings per share in the first year by 15 cents, the company said in a statement.

Ebix said the deal is expected to close later this year, following which ADAM shareholders will own about 7 percent of the combined company.

Shares of Atlanta, Georgia-based Ebix were down 2 percent to $19.10 during in morning trade Monday on Nasdaq.

ADAM shares rose 81 percent to a nearly two-year high of $5.75 Monday morning. (Reporting by Siddharth Cavale in Bangalore; Editing by Vyas Mohan)