Advent to acquire Sapiens for $2.5 billion, ending its public market run
Insurance software maker to go private at 64% premium as private equity bets on SaaS and AI transformation.
Sapiens, a global provider of cloud-based software to the insurance industry, has agreed to be acquired by Advent in a $2.5 billion all-cash transaction, one of the largest private equity takeovers in the insurtech sector in recent years.
Under the terms announced Wednesday, shareholders will receive $43.50 per share, a 64% premium to Sapiens’ undisturbed closing price of $26.52 on August 8, 2025. The deal, unanimously approved by the company’s board, will take the Nasdaq- and Tel Aviv-listed company private.
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Formula CEO Guy Bernstein (left) and Sapiens CEO Roni Al-Dor.
(Photo: Boaz Oppenheim)
Founded in 1982 and headquartered in Rochelle Park, New Jersey, Sapiens builds software for life, pensions, annuities, and property and casualty insurers. The company has been pushing deeper into SaaS and AI-enabled products, a trend Advent says it intends to accelerate.
“This transaction marks a significant milestone in Sapiens’ journey,” said Roni Al-Dor, Sapiens’ chief executive. “Partnering with Advent will allow us to continue supporting insurers through their transformation journeys, delivering the innovation and service they expect.”
Douglas Hallstrom, a director at Advent, said the shift to cloud technology and data-driven tools is becoming critical for insurers under pressure to improve profitability and resilience. “We will work with the company to accelerate investment into technology innovation, AI, and customer centricity,” he said.
Formula Systems, Sapiens’ largest shareholder, will retain a minority interest after the acquisition. Formula’s CEO, Guy Bernstein, said the partnership with Advent would strengthen Sapiens’ transition to next-generation insurance software.
Once completed, the transaction will end Sapiens’ run as a public company. Advent has secured debt and equity commitments to fund the purchase, including $1.3 billion in equity from funds it advises. The deal is expected to close in late 2025 or early 2026, pending shareholder and regulatory approval.
The deal follows nearly two years of efforts by the Formula Group, which controls 44% of Sapiens, to find a buyer. Other significant shareholders include BlackRock (3%) and Vanguard Group (2.5%). CEO and President Roni Al-Dor owns 1.55% of the company, a stake worth around $30 million at the proposed sale price.
Reports indicate that Sapiens and Formula hired U.S.-based investment bank William Blair early last year to lead the search for a buyer. Although the sale process began earlier, it was put on hold after the October 7 outbreak of the Swords of Iron War.
For Q1 2025, Sapiens posted a net profit of $17.9 million, unchanged from the same period in 2024. Revenue reached $136 million, up 1% year-on-year. Full-year 2024 revenue was $542 million, a 5% increase over 2023’s $514 million.
Sapiens provides software solutions for insurance companies and investment houses managing provident funds, with a recent focus on cloud migration. Its growth strategy centers on acquisitions, especially in the U.S. and Europe. In Q1 2025, it acquired Candela for $22 million and AdvantageGo for $58 million. However, integration challenges have led to a reduced operating profit forecast for 2025, $95 million, down from an earlier $100 million projection.
Formula’s controlling shareholder is Polish holding company Asseco, with CEO Guy Bernstein holding 11% (NIS 676 million in value). Other major shareholders include Israeli institutional investors such as Harel (7.5%), Menora Mivtachim (7%), Clal Insurance (5.4%), Yelin Lapidot (6.4%), Phoenix (7.15%), and Meitav (4.9%). A sale is expected to boost Formula’s value and deliver gains to many of Israel’s largest institutional investors managing long-term public savings.
