Insurance technology firm Sapiens International has agreed to acquire Delphi Technology, a US-based vendor of software solutions for property & casualty (P&C) carriers.
The cash deal is worth around $19.5m. Sapiens expects the acquisition to add to its profit at the beginning of next year.
Founded in 1989, Delphi has over 100 employees and around 40 insurance customers. It provides core products for medical professional liability (MPL) such as policy administration, claims management, and financial and risk management.
Sapiens expects to leverage Delphi’s expertise to advance its CoreSuite for Property & Casualty and provide the MPL market with a multi-line, comprehensive solution.
The company also aims to expand its presence in the MPL market in North America through this acquisition.
Sapiens president and CEO Roni Al-Dor said: “I am pleased to welcome the Delphi team as we strive to create additional value for customers. The US, where our suite of digital and cloud offerings has increased our market share, is a significant growth driver for Sapiens.
“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 US.”
Delphi’s 2019 full-year revenue stood at $15m and operational loss on the bottom line. Sapiens said it will continue to support Delphi’s products and customers following the deal.
Delphi founder and CEO Sam Fang said: “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.”
Last year, Sapiens agreed to purchase insurance consulting and managed services seller Cálculo for an undisclosed sum.