Israeli software developer for the insurance industry Sapiens International Corp. (Nasdaq: SPNS; TASE: SPNS) announced today that it has acquired German based insurtech company sum.cumo for up to €28.4 million.
Founded in 2010, Sum.cumo services insurers in Germany, Switzerland and Austria, helping them to set up their business model and obtain a marketing edge. The company's experts in consulting, user experience, marketing and technology enable the region's insurers to launch successful e-commerce environments.
The acquisition will enable Sapiens to expand its footprint by offering Sapiens' complete product and services portfolio in the German-speaking region, alongside sum.cumo's offerings. Sapiens will continue to invest in and support sum.cumo's offerings, and enhance Sapiens' digital offerings worldwide via sum.cumo's solutions and expertise.
Sapiens president and CEO Roni Al-Dor said, "Sapiens has implemented a growth strategy that incorporates acquisitions to accelerate our business. We are a strategic buyer that acquires companies that fit our mission, vision and culture. sum.cumo met our parameters as one of the most innovative insurtech companies in the region. Penetration into the DACH region has been part of Sapiens' long-term growth strategy and we have started to gain traction in this region with Sapiens products. With sum.cumo's local and talented team and customers, we should significantly enhance our presence there."
"Joining with Sapiens is a wonderful opportunity for sum.cumo's team and clients. As a scale-up insurtech company, we believe that Sapiens will be the right home for us," said Björn Freter, founder and co-CEO, sum.cumo. "We will continue to robustly support our customers, while also helping them evolve and thrive."
The acquisition's primary goal is expanding Sapiens' presence in Germany, Austria and Switzerland. sum.cumo is expected to reach 2019 non-GAAP revenue of €15 million and low single-digit profitability. The total consideration is up to €28.4m (€24.4m in cash and €4m in Sapiens shares), including consideration for future retention and performance over the next four years. The acquisition will be accretive to profit starting from the second half of 2020. Consummation of the transaction is subject to certain regulatory approvals. The closing is expected to take place in the middle of the current quarter.
Published by Globes, Israel business news - en.globes.co.il - on January 7, 2020
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