Advent to buy Sapiens for $2.5bn

Advent International has finalised a definitive agreement to acquire Israeli software company Sapiens International, a provider of intelligent SaaS-based software solutions for the insurance sector, in an all-cash transaction valued at around $2.5bn.

The shareholders are set to receive $43.50 per common share.

Formula Systems (1985), a current shareholder of Sapiens, will maintain a minority interest in the company following the acquisition.

Sapiens provides tools that enable insurers to enhance operational efficiency and adapt to market changes.

Its offerings include solutions for property and casualty, workers’ compensation, and life insurance, as well as reinsurance, financial compliance, data analytics, digital services, and decision management.

Sapiens serves more than 600 clients across more than 30 countries and is recognised in the industry, including being part of the Microsoft Top 100 Partner programme.

Sapiens CEO Roni Al-Dor 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.”

Advent has secured committed debt and equity financing to support the acquisition, with funds advised by Advent pledging a total equity contribution of $1.3bn.

The deal is anticipated to close in the fourth quarter of 2025 or the first quarter of 2026, pending the fulfilment of standard closing conditions, including shareholder approval and necessary regulatory clearances.

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.”

William Blair & Company is serving as the financial advisor for Sapiens, while Latham & Watkins LLP and Meitar Law Offices are providing legal counsel.

Citi is advising Advent, with Kirkland & Ellis and Herzog Fox Neeman acting as legal advisors to the private equity firm.

"Advent to buy Sapiens for $2.5bn" was originally created and published by Verdict, a GlobalData owned brand.

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