The Sapiens executive who hit billionaire status
Guy Bernstein’s stake in Formula makes him one of Israel’s newest tech billionaires after the $2.5 billion sale.
Sapiens finalized on Wednesday its sale to the investment fund Advent International for $2.5 billion, at a price of $43.5 per share, a 60% premium over the stock’s value at the end of last week, when the company was valued at $1.5 billion.
The exit represents a remarkable achievement for the software company, which had struggled to keep pace with the growth of its competitors. Market observers also view the deal as a personal triumph for Sapiens’ two most influential figures: CEO Roni Al-Dor and Chairman Guy Bernstein, who also serves as CEO of the parent company, Formula.
Formula owns 44% of Sapiens’ shares, valued at $1.1 billion in the transaction. Bernstein, who holds both leadership roles, earned a total compensation of $10.7 million in 2024. With the impending sale of Sapiens, Formula’s stock surged on Wednesday, and Bernstein’s holdings in the company are now estimated at 773 million shekels ($214 million). A calculation by Calcalist last May found that Bernstein’s accumulated compensation in blocked shares, dividend options, and equity pay over the years amounts to 960 million shekels.
The sale of Sapiens solidifies Bernstein’s meteoric rise, making him a billionaire with total assets worth 1.1 billion shekels (approximately $325M), even while remaining an active employee.
CEO Roni Al-Dor currently holds 420,000 shares, worth approximately $19.6 million. He recently sold 500,000 shares, netting a profit of $11 million. In addition, Al-Dor holds 480,000 options to purchase shares at $27 per option. The accelerated vesting of these options, triggered by the sale, represents an additional $7.7 million. In total, the exit provides Al-Dor with a combined profit of $38.3 million.
According to Sapiens’ 2024 financial report, six other executives and directors hold shares and options totaling 0.36% of the company. The value of these holdings is estimated at $9 million, with the exercise of options costing $3 million. Sapiens did not distribute any new shares in 2024. Additionally, due to a workforce reduction of 150 employees during the year, 43,000 shares at an average price of $28 expired and went unexercised.
