Sapiens International Corporation N.V. (NASDAQ:SPNS) stock skyrocketed after it announced on Wednesday that it will be acquired by global private equity firm Advent in an all-cash transaction valued at approximately $2.5 billion.
Under the agreement, shareholders will receive $43.50 per share in cash, a 64% premium over Sapiens’ closing price on Aug. 8, 2025.
The deal has been unanimously approved by the company’s board and is expected to close in late 2025 or early 2026, subject to shareholder and regulatory approvals.
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Formula Systems (1985) Ltd., an existing investor, will retain a minority stake following the acquisition.
Sapiens, a leading provider of SaaS-based software solutions for the insurance industry, said the partnership will accelerate innovation, particularly in AI and digital offerings, while expanding its global reach.
CEO Roni Al-Dor called the buyout a “significant milestone” that delivers strong shareholder value and reinforces the company’s ability to guide insurers through end-to-end digital transformation.
Douglas Hallstrom, director at Advent, said the firm plans to deepen investment in technology innovation, AI capabilities, and customer-focused strategies. He noted that insurers are increasingly turning to technology to fuel growth, boost profitability, and strengthen resilience, areas in which Sapiens plays a vital role for market-leading carriers worldwide.
Earlier this year, Sapiens expanded its footprint in the Asia-Pacific market with a $22 million acquisition of Candela, aimed at strengthening its life, pension, and annuities offerings in the region. The move aligns with the company’s broader strategy to grow in high-potential international markets.
The purchase price also represents a 51% premium to Sapiens’ 30-day and 60-day volume-weighted average prices as of Aug. 8, 2025. Upon completion, Sapiens will be taken private and its shares will be delisted.
Advent has secured committed debt and equity financing for the transaction, including $1.3 billion in equity commitments, ensuring a high degree of closing certainty.
Price Action: At last check Wednesday, SPNS shares were trading higher by 42.54% to $42.05 premarket.
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