Israeli insurance software provider Sapiens to be bought by US firm for $2.5b

Israeli financial software company Sapiens said Wednesday that it had inked an agreement to be snatched up by US private equity firm Advent International in an all-cash deal worth $2.5 billion.

Under the terms of the deal, Sapiens shareholders will receive $43.50 per common share in cash, representing a premium of about 47.5% over Sapiens’ closing share price of $29.50 on the Nasdaq on August 12, 2025. Following the transaction, Sapiens will revert to being a private company and delist its stock from the Nasdaq and the Tel Aviv Stock Exchange.

Founded in 1982, Sapiens is a developer of AI-powered applications and software solutions to help insurance companies cut costs by automating operations across life insurance, reinsurance, pension and annuities, financial compliance, data analytics, digital and decision management.

“Insurers are increasingly turning to technology to help unlock growth and profitability, drive innovation and improve business resilience,” said Advent director Douglas Hallstrom. “We will work with the company to accelerate investment into technology innovation, AI, and customer centricity.”

With headquarters in Holon and offices in New York, Sapiens employs about 5,000 workers, of whom 800 are based in Israel. The company’s software platform is used by 600 customers across 30 countries worldwide.

“This transaction comes at a critical time of market change, and we believe Sapiens will more effectively be able to navigate this in a private setting,” said Hallstrom.

Insurance and pension sectors have remained largely untouched by technological developments. The sectors have, in recent years, seen billions of dollars being poured globally, often into spin-offs from the fintech area, seeking to innovate and challenge the industry incumbents. The global insurance tech market is projected to grow from $19.06 billion in 2025 to $96.10 billion by 2032, according to a report by Fortune Business Insights.

Or Yehuda-based Formula Systems, an IT holding company headed by Guy Bernstein, which has a 43.5% stake in Sapiens, will retain a minority share in the insurance software provider. The transaction is expected to close by the first quarter of 2026, pending approval by Sapiens’ shareholders and receipt of regulatory approvals.

Founded in 1984, Advent has some $94 billion in assets under management and has invested in over 430 private equity transactions in 44 countries. Back in 2020, Advent bought Israel-founded cybersecurity firm ForeScout Technologies, a cybersecurity company, for $1.9 billion.