Israeli insurance software provider Sapiens International is set to be acquired by U.S. private equity firm Advent International in a $2.5 billion all-cash deal, marking a major move in the insurance technology sector during a period of rapid AI adoption.
Under the agreement, Sapiens’ shareholders will receive $43.50 per share in cash—a 47.5% premium over Tuesday’s closing price of $29.50 on the Nasdaq. Once the deal closes, Sapiens will transition to a privately held company.
Advent’s Growing Interest in Insurance and AI
Advent’s investment in Sapiens reflects its growing focus on the insurance industry, particularly as AI-powered software applications are becoming essential tools for insurers to improve efficiency and cut costs.
“Insurers are increasingly turning to technology to help unlock growth and profitability… We will work with the company to accelerate investment into technology innovation, AI, and customer centricity,” said Douglas Hallstrom, director at Advent.
This acquisition follows Advent’s earlier move to enter exclusive talks to buy Kereis, the largest housing protection insurance broker in France, from Bridgepoint.
Continued Stake from Existing Shareholder
Sapiens’ existing shareholder Formula Systems will retain a minority stake in the company. Formula CEO Guy Bernstein expressed enthusiasm for the new partnership, stating, “Formula will continue to retain ownership in Sapiens and is excited to partner with Advent to accelerate the transition to AI and SaaS.”
Advent’s Other Acquisition Efforts
The deal comes shortly after Advent’s unsuccessful bid to acquire British scientific instruments maker Spectris for £4.8 billion ($6.48 billion). Spectris ultimately chose to back a rival offer from KKR instead.
What This Means for the Insurance Technology Sector
The acquisition positions Sapiens for expanded innovation in AI-driven and SaaS-based insurance solutions, potentially enhancing how insurers manage operations, serve clients, and compete in a tech-driven market. With Advent’s backing and Formula Systems’ continued involvement, Sapiens is poised for accelerated growth and product development in the global insurtech space.
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