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Sapiens to Undergo Privatization through a $2.5 Billion Cash Acquisition by Advent

Sapiens International Corp. N.V., a company offering intelligent SaaS-based software to the insurance sector, revealed on Wednesday that it will be purchased by private equity investor Advent for $43.

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Sapien's ownership will transition to Advent through a $2.5 billion cash acquisition deal.
Sapien's ownership will transition to Advent through a $2.5 billion cash acquisition deal.

Sapiens to Undergo Privatization through a $2.5 Billion Cash Acquisition by Advent

Sapiens International Corp. is set to be acquired by private equity investor Advent International in an all-cash transaction valued at approximately $2.5 billion. Under the terms, Sapiens shareholders will receive $43.50 per common share in cash, representing a 64% premium over Sapiens’ undisturbed closing share price of $26.52 on August 8, 2025.

The acquisition, unanimously approved by Sapiens' Board of Directors, will result in Sapiens becoming a privately held company, with existing shareholder Formula Systems (1985) Ltd. retaining a minority stake. The transaction is expected to close in late 2025 or early 2026, pending customary regulatory and shareholder approvals.

Strategic Focus and Market Impact

Advent International aims to accelerate Sapiens' innovation in SaaS-based insurance solutions, with additional investment planned in AI-driven capabilities and cloud-based platforms. Sapiens specializes in core systems such as policy administration, claims, and analytics for insurers globally. Advent sees this as an opportunity to expand its footprint in insurance technology as carriers increase adoption of artificial intelligence to drive growth and profitability.

The acquisition aligns with Sapiens' strategy to enhance its global offerings and support insurance carriers in their digital transformation journeys, delivering product innovation and service excellence across more than 600 customers worldwide. This deal marks a significant private equity investment in the insurance technology sector, signaling increased investor confidence in AI and SaaS-driven software for insurance carriers.

Financial Advisors

William Blair & Company, L.L.C. is acting as financial advisor to Sapiens in the deal, while Citi is acting as financial advisor to Advent.

Impact on Earnings Call and Quarterly Results

In a separate announcement, Sapiens plans to forgo its second quarter Earnings Call and issue a press release with its quarterly results on August 13.

| Aspect | Details | |----------------------------|-------------------------------------------------------------| | Acquisition price | $2.5 billion | | Shareholder payment | $43.50 per share (64% premium over $26.52 closing price) | | Ownership post-acquisition | Sapiens goes private; Formula Systems retains minority stake | | Closing timeframe | Q4 2025 or Q1 2026 (subject to approvals) | | Strategic focus | Accelerate SaaS innovation, AI integration, cloud solutions | | Market impact | Strengthen Sapiens’ digital transformation offerings for insurers worldwide |

[1] Advent International press release, August 9, 2025. [2] Sapiens International Corp. press release, August 9, 2025. [3] Insurance Business Magazine, August 9, 2025. [4] Reuters, August 9, 2025. [5] Yahoo Finance, August 9, 2025.

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