HOLON, Israel, February 15, 2017 /PRNewswire/ --
Acquisition significantly
expands Sapiens' presence in the North American
insurance industry, accelerating the
company's footprint in the U.S.
Property &
Casualty space
Sapiens International Corporation, (NASDAQ: SPNS; TASE:
SPNS), a leading global provider of software solutions for the
insurance industry, with a growing presence in the financial
services sector, announced today that it has entered into a
definitive agreement (subject to customary closing conditions) to
acquire privately held StoneRiver, Inc., for approximately
$102 million in cash (subject to
certain adjustments). StoneRiver delivers a wide range of solutions
and services for the insurance industry in North America.
(Logo:
http://photos.prnewswire.com/prnh/20160803/395300LOGO )
Headquartered in Denver,
Colorado, StoneRiver's versatile product portfolio is
comprised of a policy administration suite, rating, underwriting,
illustrations, reinsurance, and finance & compliance solutions
for all major insurance business lines, across both property and
casualty (P&C) and life and annuities (L&A). StoneRiver's
rich set of solutions complements Sapiens' existing offerings, and
will allow Sapiens to accelerate its growth in the U.S. market and
globally. StoneRiver currently services more than 200 U.S.
insurance customers, and has a team of approximately 500 insurance
professionals.
"Joining forces with StoneRiver significantly expands Sapiens'
presence and scale in the North American insurance industry, and
specifically helps us further accelerate our growing market
footprint in the U.S. P&C space," said Roni Al-Dor, Sapiens president and CEO.
"Moreover, the deal is closely aligned with our M&A growth
strategy that is centered on three key factors: growing our
customer base, expanding geographically and adding complementary
solutions to our portfolio - all while we ensure our continued high
quality of services and product delivery. StoneRiver is an
acquisition that meets all of our criteria. In the past six years
Sapiens completed and integrated successfully eight
acquisitions."
Al-Dor continued, "Sapiens is confident that with StoneRiver, we
strengthen our position as a leading innovative global software
solutions provider, offering end-to-end solutions to the global
insurance industry. We look forward to welcoming the StoneRiver
team and combining best practices and capabilities, which will
create greater value for our mutual customers and
shareholders."
Donald Light, Director in
Celent's North America Property/Casualty Practice, commented, "The
continuing wave of insurance technology M&A activity
demonstrates how insurance companies value working with providers
who offer a full suite of solutions. Sapiens' acquisition of
StoneRiver is a major step forward in its global growth. This
acquisition broadens and deepens Sapiens' ability to enable US
insurers as they continue their digital and modernization
journeys."
The acquisition of StoneRiver expands Sapiens' North American
P&C portfolio with StreamSuite™, a state-of-the-art insurance
suite targeting the higher tier carriers, complementing Sapiens'
Stingray solution that is targeting the lower tier in the sector.
The company will also gain entry into the workers' compensation
sector, a new area for Sapiens. Combining Sapiens' and StoneRiver's
reinsurance solutions is expected to create a comprehensive market
offering and will allow Sapiens to better serve its customers.
Sapiens L&A offering will be enhanced by StoneRiver's
stand-alone products in illustration (LifePortraits), eApp (Life
Apply) and underwriting (Life Suite). The addition of these
products to the Sapiens ALIS software suite, together with the
company's digital suite that includes Sapiens Intelligence and
Sapiens Portal, will enable Sapiens to offer a comprehensive and
even stronger portfolio of solutions to the life and annuities
sector.
StoneRiver president and CEO Gary
Anderson commented, "We are excited to join Sapiens, a
leading software solution provider with a rich 30-plus years of
history and proven experience delivering enterprise-scale
technology globally. Like StoneRiver, Sapiens is focused on the
insurance industry and delivering high value end-to-end solutions
of core products and services. Sapiens' scale, financial strength,
industry relations and innovative technologies will be a great
benefit to current StoneRiver customers and will open up new
opportunities for our employees and partners. We look forward to
working with Sapiens to achieve a seamless transition and to
significantly expand Sapiens' North American presence."
StoneRiver estimated Non-GAAP full year 2016 revenues are
$80 million and the company is
profitable. Sapiens' management expects this transaction to be
accretive to earnings starting with the third quarter of 2017. The
transaction is expected to be completed by the end of the first
quarter of 2017. Upon completion, StoneRiver will become
wholly owned by Sapiens.
Sapiens will provide full-year 2017 guidance for the combined
organizations when reporting 2016 annual results at the end of
February 2017.
Management will host a conference call and webcast today,
February 15 at 12:00 p.m. Eastern Time (7:00 p.m. in Israel) to review and discuss the
transaction.
Please call the following numbers (at least 10 minutes before
the scheduled time) to participate:
North America (toll-free): +
1-888-407-2553; International: +972-3-918-0610; UK:
0-800-917-5108
The conference call will be accompanied by a slide presentation,
that can be download from our website at:
http://www.sapiens.com/investors/presentations-and-webcast/
The live webcast of the call can be viewed on Sapiens' website
at: http://www.sapiens.com/investors/presentations-and-webcast/
If you are unable to join live, a replay of the call will be
accessible until February 24, 2017,
as follows:
North America: 1-877-456-0009;
International: +972-3-925-5929
A recorded version of the webcast will also be available via the
Sapiens website, for three months at the same location.
Forward-Looking Statements
Some of the statements in this press release may constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities and
Exchange Act of 1934 and the United States Private Securities
Litigation Reform Act of 1995. Words such as "will," "expects,"
"believes" and similar expressions are used to identify these
forward-looking statements (although not all forward-looking
statements include such words). These forward-looking statements,
which may include, without limitation, projections regarding our
future performance and financial condition, are made on the basis
of management's current views and assumptions with respect to
future events. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement.
These statements speak only as of the date they were made, and
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. We operate in a changing environment. New risks
emerge from time to time and it is not possible for us to predict
all risks that may affect us. For more information regarding these
risks and uncertainties, as well as certain additional risks that
we face, please refer to the Risk Factors detailed in Item 3 of
Part III of our Annual Report on Form 20-F for the year ended
December 31, 2016, and subsequent
reports and registration statements filed periodically with the
Securities and Exchange Commission.
About StoneRiver, Inc.
StoneRiver delivers the industry's widest range of value-oriented
technology solutions and services to insurance carriers, agents and
broker-dealers. This versatile product group encompasses
front-office, policy, claims, rating, underwriting, billing and
reinsurance automation for all major business lines. Hundreds of
companies of all sizes rely on StoneRiver software and processing
solutions to achieve a competitive edge. Customer satisfaction and
client success are the continuing goal, and are in large part
achieved by maintaining and valuing strong, long-term customer
relationships. For more information, visit:
http://www.stoneriver.com.
About Sapiens
Sapiens International Corporation (NASDAQ and TASE: SPNS) is a
leading global provider of software solutions for the insurance
industry, with a growing presence in the financial services sector.
Sapiens offers core, end-to-end solutions to the global general
insurance, property and casualty, life, pension and annuities,
reinsurance and retirement markets, as well as business decision
management software. The company has a track record of over 30
years in delivering superior software solutions to more than 200
financial services organizations. The Sapiens team of over 1,900
professionals operates through our fully-owned subsidiaries in
North America, the United Kingdom, EMEA and Asia Pacific. For more information:
http://www.sapiens.com.
Investor and Media Contact
Yaffa Cohen-Ifrah
Chief Marketing Officer and Head of Corporate Communications
Sapiens International
Mobile: +1-201-250-9414
Phone: +972-3-790-2026
Email: Yaffa.cohen-ifrah@sapiens.com