Sapiens International (NASDAQ:SPNS) shares are trading higher Wednesday after Advent agreed to acquire the company in a $2.5 billion deal.
What To Know: Under the terms of the agreement, Sapiens shareholders will receive $43.50 per share in cash, a 64% premium to the company's undisturbed closing share price of $26.52 on Aug. 8. The deal has been unanimously approved by Sapiens' board of directors, and existing shareholder Formula Systems will retain a minority stake in the company.
Sapiens said Advent's investment will help accelerate innovation in its SaaS-based insurance solutions and expand its global reach. Upon completion of the transaction, Sapiens' common shares will no longer be publicly listed, and the company will operate as a privately held business.
The acquisition is expected to close in the fourth quarter of 2025 or the first quarter of 2026, pending shareholder and regulatory approvals. Advent has arranged committed debt and equity financing to fund the deal, including $1.3 billion in equity contributions from funds it advises.
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SPNS Price Action: At the time of writing, Sapiens stock is trading 44.34% higher at $42.58, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
