Goldman Sachs Affiliate Cancels Ebix Purchase Due to Regulatory Probe

Ebix Inc said it will not be bought by a Goldman Sachs Group Inc affiliate after the insurance software provider received a letter from a U.S. regulator regarding an investigation into allegations of misconduct, Reuters reported.

(Reuters) – Ebix Inc  said it will not be bought by a Goldman Sachs Group Inc affiliate after the insurance software provider received a letter from a U.S. regulator regarding an investigation into allegations of misconduct.

An affiliate in Goldman’s merchant bank had agreed to buy Ebix, which had been a target of allegations from short-sellers about inaccuracies in its financial statements, for $743 million last month.

Ebix said the termination was the result of a letter received by the company on June 14 from the U.S. Attorney for the Northern District of Georgia.

 

The company said it intends to continue to evaluate strategic options.