Israeli insurance software maker Sapiens explores sale, sources say

Industry:    9 months ago

Sapiens International, an Israel-headquartered insurance software firm with a market value of nearly $2 billion, is exploring options that include a potential sale, according to people familiar with the matter.

Sapiens is working with investment bank William Blair to gauge interest from potential buyers that could include private equity firms, the sources said.

Sapiens started exploring a sale after attracting takeover interest last summer and put its plans on hold after the conflict between Israel and Hamas rocked the region, one of the sources said. Sapiens revived its efforts to sell itself a few weeks ago, according to the sources.

The sources cautioned that no deal is certain and requested anonymity because the matter is confidential.

Sapiens and William Blair did not respond to requests for comment.

Sapiens shares rose 13% on the news on Friday afternoon in New York to $35.33.

Sapiens, which is in Tel Aviv and New York, provides software to insurers that specialize in areas such as property & casualty insurance, workers’ compensation, and life insurance.

It has more than 5000 employees, with operations in over 30 countries and a customer base of more than 600, according to its website.

Israeli information technology group Formula Systems, which is controlled by Polish software firm Asseco, holds a 43% stake in Sapiens, according to a regulatory filing.

Take-private deals in the technology industry slowed down last year, due to high interest rates that made financing leveraged buyouts tougher for private equity firms. Yet the market more recently has thawed.

In March, Thoma Bravo agreed to a $1.8 billion deal to take event management software firm Everbridge private.

Earlier this week, Clayton Dubilier & Rice agreed to buy a majority stake in information technology provider Presidio from BC Partners for $4 billion, while EQT agreed to buy compliance software maker Avetta for about $3 billion from Welsh Carson Anderson & Stowe.

print
Source: