Sapiens, IDIT and FIS Sign Definitive Agreement to Merge; Merged Company to Become a Major Global Insurance Solutions Provider
By Sapiens International Corporation N.v, PRNEWednesday, July 20, 2011
REHOVOT, Israel, July 21, 2011 -
- Revenues of merged company expected to reach $100 million in
2012, doubling Sapiens’ 2010 revenues - Merged company to have 70+ insurance customers
worldwide - Merged company well positioned to win core-system replacements
in the insurance industry - Merged company to become one of few vendors that offer
comprehensive proven solution suites for Life & Annuity,
Property & Casualty and Reinsurance, globally
Sapiens International
Corporation N.V. (NASDAQ and TASE: SPNS), a global provider of
innovative software solutions for the insurance industry, announced
today that it has signed a definitive agreement to acquire
Technologies Ltd., both providers of software solutions for the
insurance industry.
(Logo:
The merged company will become one of the major players in the
global insurance software industry and expects to reach $100
million in revenues in 2012. The merged company is also expected to
expand its market reach and global presence with the addition of
dozens of insurance customers, and the enhancement of the portfolio
of insurance software solutions.
FIS Software offers a comprehensive enterprise level solution
for Life, Pension and Annuity providers, with a global client base
across North America, Europe, and Asia Pacific. IDIT I.D.I.
Technologies offers a full suite of a single end-to-end
component-based integrated solution for the Property and Casualty
(General Insurance) market, with a focus on Europe, Australia and
Asia Pacific. Both companies are top ranked by industry
analysts and customers for their products and services.
In response to this announcement, Ms. Catherine Stagg-Macy,
Senior Vice President, European Insurance at Celent, a global
analyst firm, said: “This transaction highlights the fact that the
insurance software and services market is evolving and growing, and
vendors like Sapiens are investing to find new ways to bring value
to their clients.”
“The transaction should provide all three companies with
significant benefits, including a larger customer base, shared
technology and R&D, and a larger pool of professional services
resources. There are many synergies to be gained in this
transaction” said Chad Hersh, a partner of insurance practice in
Novarica, a US-Based insurance analyst firm.
“Following consummation of this transaction, Sapiens will become
a major player in the global insurance software market,” said Mr.
Roni Al-Dor, Sapiens’ CEO and President. “Together, we will have
more than 70 insurance customers worldwide, including Fortune 500
companies. Our combined customer base will enjoy the value
of a rich product portfolio of best-in-class insurance software
solutions, and a very experienced team.”
“The transaction with FIS and IDIT is another key milestone in
our strategy, which we expect to get us to $100
million of revenues in 2012 and lead us to growth with stronger
product offerings and a larger customer base in this rapidly
evolving market,” Mr. Al-Dor concluded.
“This is an important step in our growth strategy. IDIT’s market
leading software suite will now enjoy additional bandwidth of
industry skills and implementation capabilities together with
strong complimentary insurance product offerings.” said Mr. Yoel
Amir, CEO of IDIT I.D.I. Technologies. “I am confident that this
move will further foster our undisputed commitment to providing
significant competitive advantages to our customers and to the
insurance industry.”
“We are confident that the combined assets and core
competencies, together with the broad range of solutions, the range
of professional skills and the financial stability that the
transaction creates, will advance our journey toward achieving our
vision of being the world leader in our marketplace,” said Mr. Shay
Alon, CEO of FIS. “We believe that the combination of the three
companies’ businesses will allow us to contribute even greater
added value to our customers and expedite our global reach.”
As consideration in the transaction, Sapiens will issue a total
of 17.5 million common shares and warrants to purchase 1 million
common shares, in addition to a payment of $6.75 million in cash.
Completion of the transaction is subject to the satisfaction
of customary closing conditions. The parties may refrain from
completing the transaction if the price of the Sapiens common
shares at the closing is below a certain agreed upon price.
The transaction is anticipated to be completed within 45
days.
About Sapiens International
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS),
a global provider of innovative software solutions for the
insurance industry, and a member of the Formula Group (NASDAQ:
FORTY and TASE: FORT), is a global provider of business solutions
for the insurance industry, helping modernize business processes
and enabling insurance organizations to adapt quickly to change.
Sapiens’ solutions are widely recognized for their ability to
cost-effectively align IT with the business demands for speed,
flexibility and efficiency. Sapiens operates through its
subsidiaries in North America, the United Kingdom, EMEA and Asia
Pacific.
Matters set forth in this release that are forward-looking
statements are dependent on certain risks and uncertainties,
including such factors, among others, as market acceptance, market
demand, pricing, changing regulatory environment, changing economic
conditions, risks in new product and service development, the
effect of accounting policies, specific system configurations and
software needs of individual customers and other risk factors.
Investor Contact
Roni Giladi, CFO
Sapiens International
Tel: +972-8-938-2721
IR@sapiens.com
Media Contact
Osnat Segev-Harel, CMO
Sapiens International
Tel: +972-8-938-2721
osnat.se@sapiens.com
.
Tags: Israel, July 21, Rehovot, Sapiens International Corporation N.v
