Sapiens International Corp. N.V. (NASDAQ:SPNS) stock soared 44.27% to $42.56 on Wednesday after the company announced a $2.5 billion merger with private equity firm Advent. The transaction, which represents a 64% premium over SPNS' closing price last August, will be entirely paid in cash. Minority shareholder Formula Systems (1985) Ltd. will retain ownership in the company. The deal is expected to close in Q4 2023 or Q1 2026, subject to closing conditions.
Sapiens International Corp. N.V. (NASDAQ:SPNS) stock surged 44.27% to $42.56 on Wednesday after the company announced a $2.5 billion acquisition by private equity firm Advent. The transaction, which represents a 64% premium over SPNS' closing price last August, will be entirely paid in cash. Minority shareholder Formula Systems (1985) Ltd. will retain ownership in the company. The deal is expected to close in Q4 2025 or Q1 2026, subject to closing conditions [1].
The acquisition will accelerate Sapiens' innovation in SaaS-based insurance solutions, according to the company's CEO, Roni Al-Dor. Advent's investment will provide Sapiens with the resources to expand its global reach and deliver greater value to customers, employees, and partners. Together, Sapiens and Advent aim to drive digital transformation in the insurance technology sector [1].
Douglas Hallstrom, Director at Advent, expressed excitement about the partnership, stating that insurers are increasingly turning to technology for growth and profitability. He believes Sapiens will be better positioned to navigate market changes in a private setting [1].
The transaction includes a cash offer of $43.50 per share, representing a premium of approximately 64% over SPNS' undisturbed closing share price of $26.52 on August 8, 2025. Upon completion, Sapiens' common shares will no longer be publicly listed, and the company will become privately held [1].
Advent has arranged committed debt and equity financing commitments for the purpose of financing the transaction, providing a high level of closing certainty. The transaction is expected to close in Q4 2025 or Q1 2026, subject to the satisfaction of customary closing conditions, including approval by Sapiens' shareholders and receipt of regulatory approvals [1].
References:
[1] Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) - Acquisition by Advent
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