Sapiens Acquired in $2.5BN Deal, Shareholders Gain 64% Premium
Israel-based insurtech company Sapiens International is set to be acquired in an all-cash deal worth $2.5bn (NIS8.48bn) by private equity firm Advent. The acquisition, valued at a premium of around 64% on Sapiens' last closing price, is expected to close between Q4 2025 and Q1 2026.
Sapiens, known for its software-as-a-service-based solutions that incorporate AI and automation, serves various sectors including property and casualty, life insurance, and reinsurance. Its product suite also includes tools for compliance, data analytics, digital engagement, and decision management. Post-acquisition, Sapiens will operate as a private entity, with its shares to be delisted.
The acquisition, which marks a significant milestone for Sapiens, delivers an excellent outcome for its shareholders. They will receive $43.50 per share. Formula Systems, a current shareholder, will retain a minority interest in the business. Advent's resources and expertise will support Sapiens' global expansion. Advent has secured committed debt and equity financing, with funds advised by Advent pledging an aggregate equity contribution of $1.3bn.
The acquisition of Sapiens by Advent is expected to close in the next quarter, subject to standard closing conditions. This deal will enable Sapiens to grow globally with the backing of Advent's resources and expertise.
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