Advent Acquires Sapiens for $2.5 Billion, Representing 64% Premium

Advent has agreed to buy Israeli insurance software provider Sapiens for $2.5 billion, representing a 64% premium on Sapiens' closing price last week. The deal is expected to close in Q4 2025 or Q1 2026, subject to shareholder and regulatory approval. Sapiens' shares will be delisted following completion. Formula Systems, a 43.5% stakeholder in Sapiens, will retain a minority ownership position and partner with Advent to accelerate the company's transition to AI and SaaS.

Advent International, a leading private equity firm, has agreed to acquire Israeli insurance software provider Sapiens International Corporation N.V. for $2.5 billion. The all-cash transaction, representing a 64% premium over Sapiens' closing price last week, is expected to close in Q4 2025 or Q1 2026, subject to shareholder and regulatory approval [1].

Sapiens shareholders will receive $43.50 per share in cash, a significant premium over the company's undisturbed closing share price of $26.52 on August 8, 2025. Following the acquisition, Sapiens will become a privately held company, and its shares will no longer be publicly listed [2].

Formula Systems, a 43.5% stakeholder in Sapiens, will retain a minority ownership position and partner with Advent to accelerate the company's transition to AI and SaaS. "We are excited to enter the next chapter for Sapiens in partnership with Advent to continue supporting insurance carriers with their entire transformation journey," said Roni Al-Dor, CEO of Sapiens [3].

Advent's investment will accelerate Sapiens' innovation in SaaS-based insurance solutions. The acquisition aims to drive digital transformation in the insurance technology sector, leveraging Sapiens' robust technology and Advent's operational expertise. "We will work with the company to accelerate investment into technology innovation, AI, and customer centricity," said Douglas Hallstrom, Director at Advent [3].

The deal comes months after Advent entered exclusive negotiations to acquire Paris-based Kereis, the largest broker for housing protection insurance in France, from Bridgepoint. Advent has secured committed debt and equity financing for the transaction, including an equity contribution of $1.3 billion [1].

References:
[1] https://www.reuters.com/world/middle-east/insurance-software-firm-sapiens-be-bought-by-advent-25-billion-2025-08-13/
[2] https://www.investing.com/news/stock-market-news/advent-to-acquire-sapiens-for-25-billion-in-allcash-deal-4187166
[3] https://www.prnewswire.com/news-releases/sapiens-to-be-acquired-by-advent-for-2-5-billion-302528654.html