Sapiens To Be Taken Private By Advent In $2.5 Bln Cash Deal

(RTTNews) - Sapiens International Corp. N.V. (SPNS), a provider of intelligent SaaS-based software solutions to the insurance industry, announced Wedenesday its agreement to be acquired by private equity investor Advent for $43.50 per share. The all-cash transaction values Sapiens at an equity value of around $2.5 billion.

Following the deal closure, Sapiens' shares will no longer be publicly listed, and it will become a privately held company.

Under the deal terms, the per share price represents a premium of around 64% over Sapiens' undisturbed closing share price of $26.52 on August 8, and a premium of around 51% to both the 30-day and 60-day volume-weighted average price as of the same date.

The transaction is expected to close in the fourth quarter of fiscal 2025 or first quarter of fiscal 2026, subject to the satisfaction of customary closing conditions, including approval by Sapiens' shareholders and receipt of regulatory approvals.

The agreement has been unanimously approved by Sapiens' Board of Directors.

Following the transaction, existing Sapiens shareholder Formula Systems (1985) Ltd. will retain a minority stake in the company.

Funds advised by Advent have committed an aggregate equity contribution of $1.3 billion.

With the deal, Sapiens and Advent expect to jointly 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.

Sapiens plans to forgo its second quarter Earnings Call and issue a press release with its quarterly results on August 13.

Roni Al-Dor, Chief Executive Officer of Sapiens, said, "We are excited to enter the next chapter for Sapiens in partnership with Advent to continue supporting insurance carriers with their entire transformation journey, delivering the product innovation and service excellence they expect from us. Sapiens remains fully committed to being a global leader in SaaS, digital, and AI-driven insurance software solutions across Life, Pension & Annuities and P&C markets."

In the deal, William Blair & Company, L.L.C. is acting as financial advisor to Sapiens, and Citi is acting as financial advisor to Advent.