Sapiens International has agreed to be acquired by private equity firm Advent in a deal that values the insurance technology provider at around $2.5bn.
Founded in Israel, Sapiens is a provider of intelligent SaaS-based software solutions for the insurance industry.
As per the terms of the deal, shareholders of the Nasdaq-listed Sapiens will receive $43.5 per share in cash. This represents a 64% premium over the company’s undisturbed closing share price on 8 August 2025.
Formula Systems (1985), a current shareholder, will retain a minority stake.
The acquisition is aimed at enhancing Sapiens’ innovation and expanding its global reach. It will see Sapiens leveraging Advent’s expertise to boost digital transformation within the insurance technology sector.
This move is expected to improve customer outcomes by combining Sapiens’ technological capabilities with Advent’s operational resources. Following the transaction, Sapiens will become a privately held company and its shares will no longer be publicly traded.
Advent director Douglas Hallstrom 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.”
Sapiens’ board of directors has unanimously approved the agreement based on recommendations from a special committee.
Sapiens CEO Roni Al-Dor said: 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.
“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.”
The transaction, anticipated to close in Q4 2025 or Q1 2026, awaits customary closing conditions, including shareholder and regulatory approvals.
Advent has secured committed debt and equity financing to ensure a high level of closing certainty, with an equity contribution of $1.3bn from funds advised by Advent.
Earlier this month, Sapiens and Earnix announced the launch of the Earnix Price-It Connector for Sapiens IDITSuite for P&C core solution. This development caters to insurers in Europe, Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions, allowing seamless integration of product definitions and rates into existing workflows.
The collaboration aims to enhance pricing and policy management processes through improved data flow between systems.
