Sapiens International, a provider of software solutions for the insurance industry, has signed a definitive agreement to acquire FIS Software Ltd. and IDIT I.D.I. Technologies Ltd., both providers of software solutions for the insurance industry.

The merged company expects to reach $100 million in revenues in 2012 and looks to expand its market reach and global presence with the addition of dozens of insurance customers and the enhancement of the portfolio of insurance software solutions.

FIS offers an enterprise level solution for life, pension and annuity providers, with a global client base across North America, Europe, and Asia Pacific. IDIT offers a full suite of a single end-to-end component-based integrated solution for the property & casualty market, with a focus on Europe, Australia and Asia Pacific.

“This transaction highlights the fact that the insurance software and services market is evolving and growing, and vendors like Sapiens are investing to find new ways to bring value to their clients,” says Catherine Stagg-Macy, senior vice president for European insurance at Celent.

“The transaction should provide all three companies with significant benefits, including a larger customer base, shared technology and R&D, and a larger pool of professional services resources,” adds Chad Hersh, a partner in Novarica. “There are many synergies to be gained in this transaction.”

“Following consummation of this transaction, Sapiens will become a major player in the global insurance software market”, says Roni Al-Dor, Sapiens' CEO and President. “Together, we will have more than 70 insurance customers worldwide, including Fortune 500 companies. Our combined customer base will enjoy the value of a rich product portfolio of best-in-class insurance software solutions, and a very experienced team.”

 “This is an important step in our growth strategy,” says Yoel Amir, CEO of IDIT. “IDIT's software suite will now enjoy additional bandwidth of industry skills and implementation capabilities together with strong complimentary insurance product offerings. I am confident that this move will further foster our undisputed commitment to providing significant competitive advantages to our customers and to the insurance industry.”

“We are confident that the combined assets and core competencies, together with the broad range of solutions, the range of professional skills and the financial stability that the transaction creates, will advance our journey toward achieving our vision of being the world leader in our marketplace” says Mr. Shay Alon, CEO of FIS. “We believe that the combination of the three companies' businesses will allow us to contribute even greater added value to our customers and expedite our global reach.”

As consideration in the transaction, Sapiens will issue a total of 17.5 million common shares and warrants to purchase 1 million common shares, in addition to a payment of $6.75 million in cash. Completion of the transaction is subject to the satisfaction of customary closing conditions. The parties may refrain from completing the transaction if the price of the Sapiens common shares at the closing is below a certain agreed upon price. The transaction is anticipated to be completed within 45 days.