Advent International has agreed to acquire Israeli insurance software provider Sapiens International in a USD 2.5 billion cash deal.
The transaction, valued at approximately USD 2.5 billion in cash, reflects a price of USD 43.50 per share, which is around 47.5% above the firm’s closing price of USD 29.50 on Nasdaq the day before the announcement.
Once completed, the deal will see Sapiens become a privately held business. Its existing shareholder, Formula Systems, will retain a minority interest in the company. According to Sapiens officials, the agreement is part of a longer-term strategy to expand the firm’s use of artificial intelligence and Software as a Service (SaaS) offerings. Formula Systems representatives indicated they would continue collaborating with Advent to support this shift.
Focus on AI and insurance sector expansion
Advent International has been actively pursuing acquisitions in the insurance and technology space. Earlier this year, it entered exclusive talks to purchase Paris-based Kereis, France’s largest housing protection insurance broker, from Bridgepoint. Industry analysts note that the increasing adoption of AI-powered applications by insurers is aimed at cutting costs and improving operational efficiency.
Representatives from Advent said the acquisition aligns with its intention to increase investment in technology innovation and AI within the insurance sector. They added that the focus will also be on adapting solutions to meet evolving client requirements.
The announcement follows Advent’s unsuccessful attempt earlier this month to acquire British scientific instruments maker Spectris. That deal collapsed after Spectris opted to accept a competing offer from another private equity firm.
