Within less than a week, Sapiens International Corporation N.V. (TASE: SPNS; Nasdaq: SPNS), which provides software for the insurance industry, has announced two acquisitions. Last week, it reported the acquisition of Bangalore-based Candela Labs for $22 million, and yesterday it reported the acquisition of British company AdvantageGo for £43 million (about $58 million). Sapiens had $216 million cash at the end of 2024.
“AdvantageGo is expected to enable Sapiens to enhance its proposition to the London Specialty Market – a global hub for complex and high-risk insurance and reinsurance, where brokers and underwriters negotiate bespoke coverage, primarily through Lloyd’s of London and the London Company Market,” Sapiens’ announcement said. “AdvantageGo will also strengthen Sapiens’ value proposition in the North American P&C (property and casualty) market by enhancing its capabilities for insurers operating in complex specialty and commercial lines,” it added.
In 2024, AdvantageGo’s revenue was £15 million, on the basis of US GAAP, with approximately 50% from recurring revenue. The company reported a loss of £9 million, which Sapiens said was a result of “significant strategic investments in its product in recent years.” “We expect AdvantageGo to grow at double-digit rate in 2026. AdvantageGo profitability is expected to improve over time, and become accretive to Sapiens’ profit starting in 2027, driven by revenue growth and integration synergies with Sapiens,” Sapiens said.
“Sapiens’ growth strategy includes targeted acquisitions that accelerate our business. The acquisition of AdvantageGo aligns with our mission, and expands our portfolio with complementary solutions, extends our global footprint, and deepens our talent pool. We are excited to welcome AdvantageGo’s team and loyal customers to Sapiens. We remain committed to investing in AdvantageGo’s products, ensuring continuity, innovation, and long-term value for their customer base,” Sapiens president and CEO Roni Al-Dor said.
Sapiens has a market cap of $1.5 billion, after a 10.2% fall in its share price over the past twelve months, but a 4.4% rise in 2025 to date.
Published by Globes, Israel business news – en.globes.co.il – on April 29, 2025.
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