Holding company Formula Systems (TASE: FORTY; Nasdaq: FORTY) is in advanced talks on the sale of software company Sapiens (TASE: SPNS; Nasdaq: SPNS) at a valuation of $2 billion. If the deal goes head, Formula will recognize a substantial gain on its subsidiary, which had a market cap of $1.5 billion at this morning’s opening. Sapiens’ share price is currently up 17.3% on the Tel Aviv Stock Exchange, while Formula is up by more than 9%.
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Formula Systems, headed by Guy Bernstein, began examining the possibility of selling its 43.5% stake in Sapiens two years ago, and stepped up the pace of the move last year. The value of the holding on Formula’s books is just $257 million, whereas its value as derived from the terms of the deal is some $870 million.
Sapiens, headed by Roni Al-Dor, provides software solutions to the financial sector, chiefly insurance companies. Until today, its share price had fallen 5% since the start of the year, and by 30% in the past twelve months, completely contrary to the market trend.
In the first quarter of this year, Sapiens had revenue of $136 million, 1% more than in the corresponding quarter of 2024. It posted a net profit of NIS 28 million, 3% higher than in the corresponding quarter.
Published by Globes, Israel business news – en.globes.co.il – on August 10, 2025.
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