HOLON, Israel and MADRID, Oct. 10,
2019 /PRNewswire/ -- Sapiens International Corporation,
(NASDAQ: SPNS) (TASE: SPNS), a leading global provider of software
solutions for the insurance industry, announced today that it has
entered into a definitive agreement to acquire Cálculo, a leading
vendor of insurance consulting and managed services, and a core
solution to the Spanish market.
Cálculo was established in 1966 and possesses over 150 insurance
experts and 25 insurance company customers in Spain. The company's team of experts, one of
the largest core insurance system teams in Spain, and impressive customer base that
includes several blue-chip companies, will help Sapiens continue
its global expansion by entering the large Iberian market.
Sapiens will continue to invest in and support Calculo's
products, including the e-Tica core system and other solutions for
existing and new customers, while offering Sapiens' leading
products based on market segment (life & pension and property
& casualty) and different tiers. Sapiens' solutions will also
be provided to Spanish global customers.
Juan Mazzini, senior analyst of
financial services at Celent analyst firm, commented: "At Celent,
we see three overlapping forces with profound implications for the
core insurance system space in Spain: the relevance of the innovation and
digital transformation agenda for insurers, along with many years
of IT spending dedicated to maintaining systems, and the increasing
number of offers from established and new vendors to this
market."
"The need, the means and the opportunity have converged. It is a
perfect time to enter this market, as we foresee insurers investing
in new systems in the next few years. It's no surprise that Sapiens
made this move to become a relevant player in the Spanish
marketplace," concluded Mazzini.
"This acquisition was a relatively simple decision, as it is
expected to accelerate our global footprint by helping us enter the
sizeable Iberian market," said Roni
Al-Dor, Sapiens president and CEO. "It checks all the boxes
of our M&A growth strategy: it enables us to expand
geographically, grows our customer base, and adds a talented team
of experts, as well as complementary capabilities and services to
our portfolio."
Continued Al-Dor: "We see this acquisition as the catalyst for
long-term growth opportunities that will be sustained by selling
Sapiens' core and digital suites to a market with a high percentage
of in-house systems. Additionally, Sapiens will further improve our
existing products and services by onboarding Cálculo's team of
experts, consultants and solutions. Sapiens looks forward to
welcoming the Cálculo team and creating value for our customers and
shareholders."
"This acquisition will offer the Cálculo team and clients access
to innovative technology, a global network of relationships and
extensive resources," said Diogo Moraes
Sunyer, Cálculo's CEO. "Sapiens will benefit from Cálculo's
experienced experts, local market knowledge and the close
relationships we have built and maintained in Spain. We look forward to transitioning into
the organization as seamlessly as possible and creating a
successful future together with Sapiens."
The acquisition's primary goal was expansion into the Spanish
market in the long term. Calculo's expected full-year 2019 revenue
is approximately $10 million, with
break-even profitability. This transaction is expected to be
accretive to profits by the end of 2020. Sapiens will pay a cash
consideration based on valuation of less than one time
revenues.
About Cálculo
Cálculo was established in 1966 and is headquartered in
Madrid, with additional offices in
Barcelona. The company offers
specialized IT solutions for insurance companies in the Spanish
market, as well as technology management products and consulting
services specific to the sector. Cálculo possesses 25 insurance
customers, including blue chip companies, and an expert team of
over 150 employees. For more information (Spanish language):
www.calculo-sa.es.
About Sapiens
Sapiens International Corporation empowers insurers to succeed
in an evolving industry. The company offers digital software
platforms, solutions and services for the property and casualty,
life, pension and annuity, reinsurance, financial and compliance,
workers' compensation and financial markets. With more than 35
years of experience delivering to over 450 organizations globally,
Sapiens has a proven ability to satisfy customers' core, data and
digital requirements. 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
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SOURCE Sapiens International Corporation