Barington Capital Group, the activist hedge fund headed by James Mitarotonda reached an agreement with Ebix Inc (NASDAQ:EBIX), a supplier of on-demand software and e-commerce services to the insurance, financial and healthcare industries worldwide.
Last month, Barington Capital told Ebix Inc (NASDAQ:EBIX) that new independent directors are needed to improve oversight. The activist hedge fund recommended four candidates.
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Agreement between Barington Capital and Ebix
Under the agreement, Ebix Inc (NASDAQ:EBIX) agreed to provide two board seats to Barington Capital, which owns 1.6% of the outstanding common stock of the company.
Ebix Inc (NASDAQ:EBIX) agreed to add Mitarotonda and Joseph Wright to its slate of board nominees for election during the company’s 2014 annual meeting of stockholders. Wright is currently serving on the Defense Business board of the United States government.
Barington Capital agreed to vote all of its shares in favor of all the nominees of Ebix Inc (NASDAQ:EBIX). The activist hedge fund also agreed to certain customary standstill provisions.
Ebix Chairman and CEO Robin Raina said the company has been actively searching for independent directors to add to its highly-qualified board, and its leadership showed its commitment to valuing the input of shareholders.
“Our productive conversations with Barington have allowed us to reach an agreement that is in the best interests of our stockholders and adds two new independent members to our board. We are excited about our newest directors and I look forward to working with them as we execute our common goal of creating long-term stockholder value,” added Raina.
Mitarotondo said Ebix has impressive record
On the other hand, Mitarotonda said Ebix Inc (NASDAQ:EBIX) has an “impressive record of profitable growth” under the leadership of Raina. He added that the company generates high margins due to its competitive position in attractive markets.
“Joe and I are delighted to join the Ebix board. We look forward to working collaboratively with our fellow Board members and Robin to drive value for all shareholders,” said Mitarotonda.
The board of directors of Ebix Inc (NASDAQ:EBIX) will be expanded to eight if shareholders elect its nominees.