It has been announced that Sapiens International Corporation N.V., a global provider of intelligent SaaS-based software for the insurance industry, will be acquired by global private equity firm Advent. The acquisition is set to be done through an all-cash deal worth around $2.5 billion.
Under the terms of the definitive agreement, Advent will purchase Sapiens’ common shares for $43.50 each, representing a premium of approximately 64% on the company’s undisturbed closing price of $26.52 on 8 August 2025, and a 51% premium over its 30-day and 60-day volume-weighted average prices as of the same date.
Formula Systems (1985) Ltd., a current shareholder in Sapiens, will retain a minority stake following completion of the deal.
The transaction marks a major development for Sapiens, which intends to use Advent’s resources and expertise to advance its innovation plans and broaden its global footprint. Advent’s backing is expected to help Sapiens accelerate its delivery of digital transformation solutions for insurers, combining the company’s established technology with Advent’s operational know-how.
“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. 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,” said Roni Al-Dor, Chief Executive Officer of Sapiens. “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. Sapiens remains fully committed to being a global leader in SaaS, digital, and AI-driven insurance software solutions across Life, Pension & Annuities and P&C markets.”
Douglas Hallstrom, Director at Advent, commented: “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.”
Guy Bernstein, CEO at Formula, said, “Formula will continue to retain ownership in Sapiens and is excited to partner with Advent to accelerate the transition to AI and SaaS, delivering the next generation of insurance solutions for our customers. This partnership builds on Formula’s longstanding commitment to innovation while bringing in Advent’s global expertise and resources. Customers can be assured that the trusted relationships, service quality, and industry leadership they have relied upon will remain, strengthened by a shared vision for driving the future of insurance technology”
The agreement has been unanimously approved by Sapiens’ Board of Directors, following the recommendation of a special committee. The Board has also resolved to recommend that shareholders approve the deal.
Once completed, Sapiens’ common shares will be delisted, and the company will operate as a privately held entity. Advent has secured both debt and equity financing to fund the acquisition, with funds it advises committing $1.3 billion in equity capital, subject to the conditions outlined in signed equity commitment letters.
The transaction is expected to close in the fourth quarter of 2025 or the first quarter of 2026, pending shareholder approval and regulatory clearance.
The detailed terms of the agreement will be made available through a Form 6-K filing by Sapiens.
