HOLON, Israel, February 7, 2018 /PRNewswire/ --
Sapiens International Corporation,
(NASDAQ and 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 to acquire Adaptik. This acquisition
will enable Sapiens to provide North American property and casualty
(P&C) carriers with an enhanced platform, which will improve
Sapiens' competitive position and enable it to increase its market
share in the North American insurance market.
(Logo:
http://mma.prnewswire.com/media/585787/Sapiens_Logo.jpg )
Pennsylvania-based firm Adaptik
offers P&C insurers policy administration and billing
capabilities, for commercial, personal, specialty and workers'
compensation lines of business.
"We see this acquisition as a major step in Sapiens' North
American strategy and market positioning," said Karlyn Carnahan, head of the Americas, Property
and Casualty, Celent. "By bringing together the strengths of the
Adaptik and StoneRiver products, Sapiens is able to offer a strong
portfolio of solutions that is well-tuned for the North American
market. The additional resources provided by Sapiens will
strengthen their competitive marketplace position and allow them to
continue to add key capabilities as their clients focus on
expanding their digital strategies."
Roni Al-Dor, Sapiens president
and CEO said, "The acquisition of Adaptik creates synergy with
Sapiens' strong current capabilities. It will enable us to offer a
truly modern, comprehensive property and casualty digital insurance
platform. This platform will be formed by combining three powerful
core components: Adaptik Policy, Adaptik Billing and Stream®
Claims, accompanied by Sapiens' existing solutions for data and
analytics, digital engagement and distribution, and cloud
operation."
"We continue to expand in the North American insurance space, a
key market for Sapiens' planned growth. To service lower-tier
insurance carriers, we acquired Maximum Processing and its Stingray
system, followed by the acquisition of StoneRiver, Inc. in early
2017, for the mid- to upper-tiers," added Al-Dor. "Now, enhanced by
the Adaptik acquisition, those transactions enabled Sapiens to
establish a stronger presence in the U.S., while extending our
reach with capabilities that are specifically fit to market across
the life and annuities (L&A) and P&C markets."
"As part of the Sapiens organization, the Adaptik team and
clients will have access to extensive resources and a global
network of relationships," said John
Pettit, Adaptik's co-founder and CEO. "By incorporating our
solutions as part of a leading software platform, our policy
administration and billing capabilities will be future-proofed and
fully integrated. We look forward to transitioning into the Sapiens
organization as seamlessly as possible to ensure uninterrupted
service for our customers."
"In addition to its product portfolio, Adaptik's established,
in-production customer base, along with its experienced and
talented team, made for an attractive proposition for Sapiens,"
continued Al-Dor. "P&C providers seeking flexible product
configuration will be well-served by our newly constituted P&C
platform, offered as a single suite, or as standalone components.
Carriers can also choose between a full cloud-based deployment, or
the traditional on-premise option. This flexibility will enable
carriers to best satisfy their specific financial and operational
needs."
Highlights of the Sapiens' P&C platform for North America include:
- Pre-defined insurance products and business content
- An insurance data repository and advanced analytics solutions,
with initiatives around advanced data management and predictive
analytics
- A digital engagement platform, featuring portal, mobile and
customer engagement tools
- An insurtech ecosystem with rapid integration capabilities,
including pre-integration to leading technologies, such as
personalized video, chatbots, artificial intelligence and machine
learning-based services
- Open API architecture, with easy and configuration-based
integration
- Cloud and software-as-a-service as an emerging and strategic
deployment approach
- A robust reinsurance solution
Adaptik Policy is used by agents, underwriters and
customers to quote, issue and administer policies. It includes
built in integration with third-party systems and provides
comprehensive policy lifecycle support for all P&C lines of
business. Adaptik Billing enables P&C carriers to integrate
with third-party systems and data repositories, enjoy best-in-class
usability and automate processes throughout the billing lifecycle.
These offerings improve policy administration and billing for
commercial, personal and specialty lines of business. StoneRiver
Stream® Claims is an underlying platform that prepares P&C
carriers to adapt to new business requirements, while
streamlining end-to-end claims processing for all personal and
commercial lines.
Adaptik's expected non-GAAP full year 2017 revenues were
$12 million. Sapiens expects this
transaction to be accretive to earnings starting in 2019. Sapiens
will pay an aggregate cash consideration of between $19.5 million and $22
million, subject to retention and performance.
The transaction is expected to be completed in early March
2018. Upon completion, Adaptik will become wholly owned by
Sapiens.
Conference Call
Sapiens management will host a conference call and webcast to
review and discuss the Adaptik acquisition, along with preliminary
results for full-year 2017 and financial guidance for full-year
2018, on Monday, February 12, at
9:00 a.m. Eastern Time (4:00 p.m. in Israel).
Please call the following numbers (at least 10 minutes before
the scheduled time) to participate:
North America (toll-free):
+1-888-668-9141; International: +972-3- 9180609; UK:
0-800-917-5108.
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 22,
2018:
North America: 1-888-782-4291;
International: +972-3-925-5918.
A recorded version of the webcast will also be available for
three months via the Sapiens website.
About Adaptik
Adaptik Corporation was founded in 2000 by seasoned insurance
professionals who had previously worked for some of the largest and
most respected insurers in the field, including Chubb, Travelers
and Samsung Fire & Marine. Numerous large P&C carriers rely
on Adaptik's solutions and its team to meet their most complex
product, business process and integration requirements. For more
information: www.adaptik.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.
We offer integrated core software solutions and business services,
and a full digital suite for the property and casualty/general
insurance; life, pension and annuities; and reinsurance markets.
Sapiens also services the workers' compensation and financial and
compliance markets.
Our portfolio includes policy administration, billing and
claims; underwriting, illustration and electronic application;
reinsurance and decision management software. Sapiens' digital
platform features customer and agent portals, and a business
intelligence platform. With a 30-year track record of delivering to
more than 400 organizations, Sapiens' team of over 2,500 operates
through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific. For more information:
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
SOURCE Sapiens International Corporation