Rochelle Park-based Sapiens International Corp., a global leader in intelligent SaaS-based software solutions for the insurance industry, announced on Wednesday that it has entered into a definitive agreement to be acquired by Advent, a global private equity investor. The all-cash transaction values Sapiens at approximately $2.5 billion.
Under the terms of the deal, Sapiens shareholders will receive $43.50 per common share. This represents a significant premium of approximately 64% over Sapiens’ undisturbed closing share price of $26.52 on Aug. 8. Formula Systems, an existing Sapiens shareholder, will retain a minority stake in the company.
The acquisition is seen as a major step in Sapiens’ growth journey. Advent’s investment is expected to accelerate the company’s innovation roadmap and expand its global presence, particularly in SaaS-based insurance solutions.
Together, Sapiens and Advent will drive digital transformation in the insurance technology sector, leveraging Sapiens’ robust technology and Advent’s operational expertise to help unlock new solutions and enhance customer outcomes.
“This transaction marks a significant milestone in Sapiens’ journey, reinforces the success of our strategy… and delivers an excellent outcome for Sapiens’ shareholders,” Roni Al-Dor, CEO of Sapiens, said. He added that the partnership with Advent will help the company continue to support insurance carriers with their digital transformation.
“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,” Douglas Hallstrom, director at Advent, said.
The agreement has been unanimously approved by Sapiens’ Board of Directors. The transaction is backed by committed debt and equity financing from Advent, providing a high level of closing certainty. The deal is subject to shareholder and regulatory approvals and is expected to close in either the fourth quarter of 2025 or the first quarter of 2026.
Upon completion, Sapiens will become a privately held company and its shares will no longer be publicly listed.
William Blair & Company, L.L.C. is acting as financial advisor to Sapiens, and Latham & Watkins LLP and Meitar Law Offices are acting as legal counsel to Sapiens.
Citi is acting as financial advisor to Advent, and Kirkland & Ellis LLP and Herzog Fox Neeman are acting as legal counsel to Advent.
