Israeli insurance software solutions provider Sapiens International Corp. (Nasdaq: SPNS; TASE: SPNS) announced today that it has entered into a definitive agreement to acquire US company Adaptik for between $19.5 million and $22 million cash, subject to retention and performance. The acquisition will enable Holon-based Sapiens to provide North American property and casualty (P&C) carriers with an enhanced platform, which will improve Sapiens' competitive position and enable it to increase its market share in the North American insurance market.
Pennsylvania-based firm Adaptik offers P&C insurers policy administration and billing capabilities, for commercial, personal, specialty and workers' compensation lines of business.
Sapiens president and CEO Roni Al-Dor said, "The acquisition of Adaptik creates synergy with Sapiens' strong current capabilities. It will enable us to offer a truly modern, comprehensive property and casualty digital insurance platform. This platform will be formed by combining three powerful core components: Adaptik Policy, Adaptik Billing and Stream Claims, accompanied by Sapiens' existing solutions for data and analytics, digital engagement and distribution, and cloud operation."
He added, "We continue to expand in the North American insurance space, a key market for Sapiens' planned growth. To service lower-tier insurance carriers, we acquired Maximum Processing and its Stingray system, followed by the acquisition of StoneRiver, Inc. in early 2017, for the mid- to upper-tiers," added Al-Dor. "Now, enhanced by the Adaptik acquisition, those transactions enabled Sapiens to establish a stronger presence in the U.S., while extending our reach with capabilities that are specifically fit to market across the life and annuities (L&A) and P&C markets."
Adaptik cofounder and CEO John Pettit said, "As part of the Sapiens organization, the Adaptik team and clients will have access to extensive resources and a global network of relationships. By incorporating our solutions as part of a leading software platform, our policy administration and billing capabilities will be future-proofed and fully integrated. We look forward to transitioning into the Sapiens organization as seamlessly as possible to ensure uninterrupted service for our customers."
Al-Dor said, "In addition to its product portfolio, Adaptik's established, in-production customer base, along with its experienced and talented team, made for an attractive proposition for Sapiens. P&C providers seeking flexible product configuration will be well-served by our newly constituted P&C platform, offered as a single suite, or as standalone components. Carriers can also choose between a full cloud-based deployment, or the traditional on-premise option. This flexibility will enable carriers to best satisfy their specific financial and operational needs." Adaptik's expected non-GAAP full year 2017 revenues were $12 million. Sapiens expects this transaction to be accretive to earnings starting in 2019. The transaction is expected to be completed in early March 2018. Upon completion, Adaptik will become wholly owned by Sapiens.
Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2018
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