Financial software solutions developer Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) finished paying off its bond debt in December last year and announced its intention to use its available cash for acquisitions. Today, the company announced its first acquisition in years, buying Toronto-based Harcase Software Inc., a provider of property and casualty insurance software solutions to the North American insurance industry. Sapiens acquired Harcase for $6-8 million in cash and shares, mostly in cash, with the final price depending on achieving certain milestones.
Industry sources estimate Harcase has about $5 million in annual sales and is profitable.
Sapiens has $11.2 million in cash. The company will use its own sources for the acquisition, and will not raise capital or take a loan.
Sapiens, a subsidiary of Emblaze Ltd. (LSE: BLZ) held through Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT), provides financial software solutions for the insurance industry, with a focus on life insurance and pensions.
Sapiens president and CEO Roni Al-dor told "Globes", "Harcase's solution supplements ours.Over the years, we've greatly increased our business in Israel, Europe, and Japan, but we're relatively weak in the US. This acquisition greatly strengthens us in the American market." He added that Sapiens deliberated whether to develop its own solution or to acquire a company in the sector, and after reviewing several options, decided to acquire Harcase.
Harcase has 30 employees, all of whom Al-dor said would join Sapiens. As part of the deal, Harcase founder, president and CEO Dan Sobotincic committed to staying on at Sapiens, and will handle the company's property and insurance business in North America. Harcase markets its products under the RapidSure Policy Administration Solution label, which Sapiens will keep./
Sapiens' share price rose 0.5% on Nasdaq yesterday to $2.16, giving a market cap of $47 million. The share price was unchanged at NIS 8.08 by midday on the TASE today.
Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2010
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