Advent to acquire Sapiens in $2.5bn deal to drive AI and SaaS innovation in insurance tech

Advent has agreed to acquire Sapiens International Corporation, a global provider of SaaS-based software for the insurance industry, in an all-cash transaction valuing the business at $2.5bn.

Sapiens shareholders will receive $43.50 per share, a 64% premium to the company’s undisturbed closing price on 8 August 2025.

Formula Systems will retain a minority stake in Sapiens, which will become a privately held company once the deal closes. Advent has secured $1.3bn in equity commitments alongside committed debt financing, with completion expected in Q4 2025 or Q1 2026, subject to regulatory and shareholder approval.

Founded in 1982, Sapiens serves more than 600 customers in over 30 countries with AI- and automation-enabled platforms for property and casualty, life, pension, annuities, and reinsurance markets. The company is recognised for its digital and analytics capabilities, including selection to the Microsoft Top 100 Partner program.

“This transaction marks a significant milestone in Sapiens’ journey,” said CEO Roni Al-Dor. “Partnering with Advent allows us to accelerate innovation, expand globally, and deliver even greater value to our customers.”

Advent Director Douglas Hallstrom said the firm will support Sapiens’ technology, AI, and customer-centric growth strategy: “This transaction comes at a critical time of market change, and we believe Sapiens will navigate this more effectively in a private setting.”

Formula CEO Guy Bernstein added that the partnership would drive the next generation of AI and SaaS insurance solutions, strengthening service quality and industry leadership.

Advisors on the deal included William Blair & Company (financial) and Latham & Watkins LLP/Meitar Law Offices (legal) for Sapiens, and Citi (financial) with Kirkland & Ellis LLP/Herzog Fox Neeman (legal) for Advent.

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