Sapiens International Corp. N.V., a global provider of innovative software solutions for the insurance industry, today announced it will acquire top, industry-ranked software solutions providers FIS Software Ltd. and IDIT I.D.I. Technologies Ltd.
The combined companies will roll out of the merger as a leading player in the global insurance software industry, leveraged by enhanced resources and expanded global presence. Together, the companies will have more than 70 insurance customers worldwide.
“The transaction should provide all three companies with significant benefits, including a larger customer base, shared technology and R&D, and a larger pool of professional services resources. There are many synergies to be gained in this transaction” Chad Hersh, a partner of insurance practice in Novarica, a U.S.-based insurance analyst firm stated in the press release.
FIS Software offers life, pension and annuity services, with client base spread across North America, Europe, and Asia Pacific. IDIT focuses on the property and casualty (general insurance) market in Europe, Australia and Asia Pacific.
Roni Al-Dor, Sapiens’ CEO and president, emphasized the magnitude of the merger and expected revenues.
“The transaction with FIS and IDIT is another key milestone in our strategy, which we expect to get us to $100 million of revenues in 2012 and lead us to growth with stronger product offerings and a larger customer base in this rapidly evolving market,” Al-Dor stated.
Shay Alon, CEO of FIS, shares the same sentiment.
“We are confident that the combined assets and core competencies, together with the broad range of solutions, the range of professional skills and the financial stability that the transaction creates, will advance our journey toward achieving our vision of being the world leader in our marketplace” Alon stated. “We believe that the combination of the three companies’ businesses will allow us to contribute even greater added value to our customers and expedite our global reach.”
Per the agreement, Sapiens will issue a total of 17.5 million common shares and warrants to purchase 1 million common shares, in addition to a payment of $6.75 million in cash. The company said it expects to complete the deal within 45 days.
For more information visit http://www.synopsys.com
Let us hear your thoughts below: