Sapiens is controlled by Formula Systems 1985 Ltd., an Israeli software consulting company. (David/Adobe Stock)
(Bloomberg) — Private equity firm Advent International has struck an agreement to acquire Sapiens International Corp., an Israeli software provider to the insurance industry, for about $2.5 billion.
Advent has offered to pay $43.50 per share in an all-cash transaction, the company said in a statement. That’s about a 64% premium over Sapiens’ closing stock price on Aug. 8, before Israeli newspaper Calcalist reported on talks to sell the business. The deal is expected to close next quarter or in early 2026, it added.
Sapiens is listed in New York and Tel Aviv and operates a number of brands that offer insurance, pension and reinsurance products globally. The company’s shares haven’t fully recovered from a more than 20% drop in November after it reported slower sales growth than analysts predicted. They’d hit a 10-year peak of $41.02 in July 2024, but have dropped about 15% in the last 12 months.
“We will work with the company to accelerate investment into technology innovation, AI, and customer centricity,” Advent Director Douglas Hallstrom said in the statement. “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.”
Sapiens is controlled by Formula Systems 1985 Ltd., an Israeli software consulting company that owns more than 40% of the shares, according to data compiled by Bloomberg. Formula Systems said it will retain some ownership in the company after the deal with Advent closes.
Sapiens shares gained as much as 47% in Tel Aviv to as much as 144.9 shekels ($42.70) on Wednesday.
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