Advent has agreed to acquire Sapiens International Corporation for $2.5 billion, providing shareholders with a 64% premium per share, while Formula Systems retains a minority stake post-acquisition.

Target Information

Advent has entered into an agreement to acquire Sapiens International Corporation, a prominent global provider of Software as a Service (SaaS) solutions specifically tailored for the insurance sector. The transaction, valued at $2.5 billion in an all-cash deal, entails compensation for Sapiens' shareholders at a rate of $43.50 per share, reflecting a remarkable 64% premium based on the company’s undisturbed closing price from August 8, 2025. Once finalized, Sapiens will transition into a privately held entity, with Formula Systems retaining a minority share in the company.

Industry Overview

The insurance technology landscape is evolving rapidly, particularly in countries like Israel, where Sapiens is headquartered. The increasing demand for digital transformation within the insurance industry has propelled growth in SaaS applications, leading to significant investments from both public and private sectors. Insurance companies are increasingly seeking efficient, user-friendly software solutions to streamline operations, enhance customer experience, and ensure compliance with regulatory requirements.

In recent years, the global insurance technology market has been characterized by a surge in innovative offerings, including artificial intelligence, machine learning, and data analytics integration. These cutting-edge technologies are helpi