Israeli insurance software solutions company Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) announced today that it has entered into a definitive agreement to acquire Danish digital software solutions vendor Tia Technology for $78 million in cash on a fully diluted basis. The deal is expected to be completed by end of this month.
Tia Technology offers comprehensive software solutions primarily for property and casualty insurers as well as life and pension, and health. Tia also offers a full scope of expert implementation, application management and hosting services, enabling insurers to execute their digital and business strategies.
Sapiens says it will continue to develop and support Tia's products and serve its customers, who can now benefit from Sapiens' offerings. Sapiens will leverage the insurance domain knowledge of Tia's 200 employees to further expand Sapiens P&C and L&P offerings in their respective regions in which it operates.
Sapiens' strategic market presence Scandinavia began five years ago with the winning of its first customers in the region and has further expanded in recent years. The increased local presence through Tia's acquisition demonstrates Sapiens' determination to expand in the Nordic region and is a key factor for continued focus on this market. Tia's management and team will allow Sapiens to better service this market and further grow in the region.
The Nordics are a significant growth driver for Sapiens," said Roni Al-Dor, Sapiens' president and CEO. "We remain committed to exploring new opportunities for growth, organic as well as through mergers and acquisitions. This acquisition is in line with our strategy to expand our European market footprint, following recent acquisitions in Iberia and the DACH regions."
Tia's 2019 full-year revenue was $30 million with 14% non-GAAP normalized operational profit margin. At closing, Sapiens will hold 95% of the company's shares and will have the right to acquire the remaining minority shares.
Published by Globes, Israel business news - en.globes.co.il - on November 9, 2020
© Copyright of Globes Publisher Itonut (1983) Ltd. 2020