Sapiens International Corporation, a SaaS software vendor for the insurance sector, will be acquired by private equity firm Advent in a $2.5bn all-cash deal.
The agreement values shares at $43.50, representing a 64% premium over Sapiens’ undisturbed closing price of $26.52 on August 8, 2025.
Formula Systems, Sapiens’ current majority shareholder, will retain a minority stake. The deal, unanimously approved by Sapiens’ board, is expected to close by late 2025 or early 2026, subject to shareholder and regulatory clearance. Upon completion, Sapiens will operate as a privately held company.
CEO Roni Al-Dor said the acquisition rewards shareholders while allowing the company to maintain focus on advancing its technology portfolio. He highlighted the strategic value of the Advent partnership in helping insurers through digital transformation.
Advent director Douglas Hallstrom pointed to increased demand among carriers for technology that drives profitability and operational scale. He said the firm plans to boost investment in AI, product development, and customer experience.
We will work with the company to accelerate investment into technology innovation, AI, and customer centricity
Advent director Douglas Hallstrom
Formula CEO Guy Bernstein confirmed Formula’s ongoing stake signals long-term belief in the company’s strategy and alignment with Advent’s vision. He cited AI and SaaS expansion as key growth areas.
Advent secured $1.3bn in equity financing to support the acquisition. William Blair advised Sapiens, while Citi advised Advent. Legal counsel came from Latham & Watkins, Meitar Law Offices, Kirkland & Ellis, and Herzog Fox Neeman.
