Private equity firm Advent has agreed to acquire Israel-based insurtech company Sapiens International in an all-cash deal valued at $2.5bn (NIS8.48bn). 

Sapiens is known for its software-as-a-service-based solutions that incorporate AI and automation to aid insurers.  

The company’s product suite serves various sectors such as property and casualty, workers’ compensation and life insurance, along with tools for reinsurance, compliance, data analytics, digital engagement and decision management. 

Under the agreed terms, shareholders of Sapiens will receive $43.50 per share, marking a premium of around 64% on the company’s last closing price on 8 August 2025.  

Post-acquisition, Sapiens will operate as a private entity, with its shares to be delisted. 

Formula Systems, a current shareholder in Sapiens, will continue to hold a minority interest in the business after the acquisition. 

The acquisition will support Sapien’s expansion on a global scale with the resources and expertise provided by Advent, the insurtech company said in a press release.  

Advent has secured committed debt and equity financing. 

Funds advised by Advent have pledged an aggregate equity contribution of $1.3bn.  

The deal’s completion is expected between the fourth quarter of 2025 (Q4 2025) and Q1 2026, contingent upon standard closing conditions. 

Sapiens CEO Roni Al-Dor said: “This transaction marks a significant milestone in Sapiens’ journey, reinforces the success of our strategy, our commitment to delivering exceptional value to our customers and the strength of our global team.  

“Following a deliberate process, the Board of Directors approved this transaction, which delivers an excellent outcome for Sapiens’ shareholders, providing them a substantial cash value at an attractive premium.”  

Advent director Douglas Hallstrom stated: “We are delighted to partner with Sapiens to support its next phase of innovation. 

Hallstrom added: “We will work with the company to accelerate investment into technology innovation, AI and customer centricity. This transaction comes at a critical time of market change, and we believe Sapiens will more effectively be able to navigate this in a private setting.”