Printer Friendly

Sapiens to Acquire US Insurance Software Firm StoneRiver for USD 102m.

MANews-(C)2009-2017

16 February 2017 - Israeli insurance software company Sapiens International Corp. (NASDAQ: SPNS) (TASE: SPNS) has entered into a definitive agreement to acquire privately held US-based insurance solutions and services provider StoneRiver, Inc., for approximately USD 102m in cash, the company said.

Headquartered in Denver, Colorado, StoneRiver's product portfolio is comprised of a policy administration suite, rating, underwriting, illustrations, reinsurance, and finance and compliance solutions for all major insurance business lines, across both property and casualty and life and annuities.

Sapiens said that StoneRiver's set of solutions complements its existing offerings, and will allow Sapiens to accelerate its growth in the US market and globally.

StoneRiver currently services more than 200 US insurance customers, and has a team of approximately 500 insurance professionals.

The acquisition of StoneRiver expands Sapiens' North American P/C portfolio with StreamSuite, an 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 stronger portfolio of solutions to the life and annuities sector.

StoneRiver estimated Non-GAAP full year 2016 revenues are USD80 m and the company is profitable. Sapiens' management expects this transaction to be accretive to earnings starting with 3Q17. The transaction is expected to be completed by the end of 1Q17.

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.

Sapiens International 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 Sapiens team of over 1,900 professionals operates through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific.

Country: USA

Sector: Insurance

Target: StoneRiver, Inc

Buyer: Sapiens International Corp

Vendor:

Deal size in USD: 102m

Type: Corporate Acquisition

Financing: Cash

Status: Agreed

Buyer advisor: , ,

Comment:

COPYRIGHT 2017 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M & A Navigator
Date:Feb 16, 2017
Words:408
Previous Article:Zekelman Division Closes Acquisition of California Steel Products Maker Western Tube and Conduit.
Next Article:Manpower Acquires Spanish Business of IT Consulting, Staffing Firm Ciber.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters