HOLON, Israel, July 27, 2020 /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 Delphi Technology Inc. (Delphi), a
leading vendor of software solutions for property & casualty
(P&C) carriers, with a focus on the medical professional
liability (MPL)/healthcare professional liability (HCPL) markets
(sometimes referred to as "medical malpractice").
U.S.-based Delphi, founded in 1989 and headquartered in
Boston, MA, has over 100 employees
and approximately 40 insurance customers. The company offers core
products for MPL, including policy administration, claims
management, and financial and risk management. Sapiens will
continue to support Delphi's products and customers, who can now
benefit from a variety of complimentary products and services. In
addition, Sapiens will leverage Delphi's expertise and know-how to
further enhance its CoreSuite for Property & Casualty to
provide a holistic, multi-line, comprehensive solution to the MPL
market.
"Industry consolidation has challenged MPL insurers to deliver
differentiated products and services for the full scope of
healthcare providers, including large institutions and networks,
individuals, small groups and captives," said Martina Conlon, executive vice president,
Research & Consulting, Novarica, Inc. "Insurers need a strong
technology partner to deliver flexible, digital offerings with
best-in-class service options. The Delphi acquisition gives Sapiens
rich MPL domain knowledge and a customer base to advance its
position in the U.S."
"I am pleased to welcome the Delphi team as we strive to create
additional value for customers. The U.S., where our suite of
digital and cloud offerings has increased our market share, is a
significant growth driver for Sapiens. The Delphi acquisition
expands Sapiens' presence in the MPL market and improves our
prospects in this key region," said Roni
Al-Dor, Sapiens president and CEO. "The combination of
Delphi's deep knowledge base and customer portfolio – combined with
Sapiens' solutions, relationships, and resources – will enhance our
position as a leading solution provider in the U.S."
"Sapiens' advanced technologies and scalable services models,
backed by Delphi's market presence, extensive client relationships,
and domain expertise, will enable a much deeper penetration of the
MPL market. Together, Delphi and Sapiens will create exciting new
opportunities for employees, customers, and prospects," said
Sam Fang, founder and CEO of Delphi
Technology, Inc. "Energized for the future, we eagerly look forward
to seamlessly integrating with Sapiens to serve the MPL
market."
The acquisition's primary goal is expanding Sapiens' presence in
the MPL market. Delphi's 2019 full-year revenue was $15 million and operational loss on the bottom
line. The total consideration is up to $19.5
million in cash. We anticipate the acquisition to be
accretive to profit in early 2021.
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 & casualty,
life, pension & annuity, reinsurance, financial &
compliance, workers' compensation and financial markets. With more
than 35 years of experience delivering to over 500 organizations
globally, Sapiens has a proven ability to satisfy customers' core,
data and digital requirements. For more
information: www.sapiens.com.
About Delphi Technology
Delphi Technology, Inc. delivers the software solutions that
property & casualty (P&C) insurers need to streamline their
operations, optimize their business processes and respond to
changing business needs. Leveraging a highly flexible technology
platform, Delphi enables companies to reduce costs, increase
operational efficiency and improve business intelligence. For more
information: www.delphi-tech.com.
Media Contact:
Alex
Zukerman
CMO and Chief of Strategy, Sapiens
+972 546 724 910
alex.zukerman@sapiens.com
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SOURCE Sapiens International Corporation