Israel’s Sapiens to be bought by US firm Advent for $2.5 billion

Sapiens, founded in 1982, develops AI-powered applications and software solutions to help insurance companies cut costs.

By JNS

The Holon-based Sapiens International Corporation, a global leader in providing intelligent SaaS-based software solutions to the insurance industry, announced on Wednesday that it had agreed to be acquired by Advent International, an American private equity investor, in an all-cash transaction valued at $2.5 billion.

(Saas is software as a service.)

“We are pleased to announce that we have entered into a definitive agreement to be acquired by Advent, a leading global private equity investor, for $43.50 per common share, in an all-cash transaction that values Sapiens at an equity value of approximately $2.5 billion,” Sapiens posted on LinkedIn.

It added, “Together, Sapiens and Advent will drive digital transformation in the insurance technology sector, leveraging our robust technology and Advent’s operational expertise to help unlock new solutions and enhance customer outcomes.”

Sapiens, founded in 1982, develops AI-powered applications and software solutions to help insurance companies cut costs.

Its website describes it as “a future-proof, AI-based, open and integrated insurance platform, which accelerates innovation, delivers sustained value and empowers insurers to grow, differentiate and stay ahead.”

Under the deal unanimously approved by the company’s board, once the transaction is completed, Sapiens’ common shares will no longer be publicly listed on Nasdaq and the Tel Aviv Stock Exchange, and it will become a privately held company.

Existing Sapiens shareholder the Or Yehuda, Israel-based Formula Systems will retain a minority stake in the company.

The transaction is expected to close in Q4 2025 or Q1 2026, subject to the satisfaction of customary closing conditions, including approval by Sapiens’ shareholders and receipt of regulatory approvals, Sapiens said.

“This transaction marks a significant milestone in Sapiens’ journey, reinforces the success of our strategy, our commitment to delivering exceptional value to our customers, and the strength of our global team. Following a deliberate process, the Board of Directors approved this transaction, which delivers an excellent outcome for Sapiens’ shareholders, providing them a substantial cash value at an attractive premium,” said Roni Al-Dor, CEO of Sapiens.

He added:

“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.”

Douglas Hallstrom, director of Advent, said:

“We are delighted to partner with Sapiens to support its next phase of innovation. Insurers are increasingly turning to technology to help unlock growth and profitability, drive innovation and improve business resilience—with Sapiens a critical partner in enabling this for market leading insurers globally. We will work with the company to accelerate investment into technology innovation, AI and customer centricity. This transaction comes at a critical time of market change, and we believe Sapiens will more effectively be able to navigate this in a private setting.”

Guy Bernstein, CEO at Formula Systems, said:

“Formula will continue to retain ownership in Sapiens and is excited to partner with Advent to accelerate the transition to AI and SaaS, delivering the next generation of insurance solutions for our customers. This partnership builds on Formula’s longstanding commitment to innovation while bringing in Advent’s global expertise and resources. Customers can be assured that the trusted relationships, service quality and industry leadership they have relied upon will remain, strengthened by a shared vision for driving the future of insurance technology.”