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11th February 2018
Sapiens to acquire Adaptik in the US
Sapiens International Corporation has announced that it has entered into a definitive agreement to acquire Adaptik. This acquisition will enable Sapiens to provide North American property and casualty carriers with an enhanced platform, which will improve Sapiens’ competitive position and enable it to increase its market share in the North American insurance market.
Pennsylvania-based firm Adaptik offers P&C insurers policy administration and billing capabilities, for commercial, personal, specialty and workers’ compensation lines of business.
“We see this acquisition as a major step in Sapiens’ North American strategy and market positioning,” said Karlyn Carnahan, head of the Americas, Property Casualty, Celent. “By bringing together the strengths of the Adaptik and StoneRiver products, Sapiens is able to offer a strong portfolio of solutions that is well-tuned for the North American market. The additional resources provided by Sapiens will strengthen their competitive marketplace position and allow them to continue to add key capabilities as their clients focus on expanding their digital strategies.”
Roni Al-Dor, Sapiens president and ceo, comments “The acquisition of Adaptik creates synergy with Sapiens’ strong current capabilities. It will enable us to offer a truly modern, comprehensive property and casualty digital insurance platform. This platform will be formed by combining three powerful core components: Adaptik Policy, Adaptik Billing and Stream Claims, accompanied by Sapiens’ existing solutions for data and analytics, digital engagement and distribution, and cloud operation.
We continue to expand in the North American insurance space, a key market for Sapiens’ planned growth. To service lower-tier insurance carriers, we acquired Maximum Processing and its Stingray system, followed by the acquisition of StoneRiver in early 2017, for the mid- to upper-tiers Now, enhanced by the Adaptik acquisition, those transactions enabled Sapiens to establish a stronger presence in the US, while extending our reach with capabilities that are specifically fit to market across the life and annuities (L&A) and P&C markets.
“As part of the Sapiens organisation, the Adaptik team and clients will have access to extensive resources and a global network of relationships,” said John Pettit, Adaptik’s co-founder and ceo. “By incorporating our solutions as part of a leading software platform, our policy administration and billing capabilities will be future-proofed and fully integrated. We look forward to transitioning into the Sapiens organisation as seamlessly as possible to ensure uninterrupted service for our customers.”
“In addition to its product portfolio, Adaptik’s established, in-production customer base, along with its experienced and talented team, made for an attractive proposition for Sapiens,” continued Al-Dor. “P&C providers seeking flexible product configuration will be well-served by our newly constituted P&C platform, offered as a single suite, or as standalone components. Carriers can also choose between a full cloud-based deployment, or the traditional on-premise option. This flexibility will enable carriers to best satisfy their specific financial and operational needs.”
Adaptik Policy is used by agents, underwriters and customers to quote, issue and administer policies. It includes built in integration with third-party systems and provides comprehensive policy lifecycle support for all P&C lines of business. Adaptik Billing enables P&C carriers to integrate with third-party systems and data repositories, enjoy best-in-class usability and automate processes throughout the billing lifecycle. These offerings improve policy administration and billing for commercial, personal and specialty lines of business. StoneRiver Stream Claims is an underlying platform that prepares P&C carriers to adapt to new business requirements, while streamlining end-to-end claims processing for all personal and commercial lines.
Adaptik’s expected non-GAAP full year 2017 revenues were $12m. Sapiens expects this transaction to be accretive to earnings starting in 2019. Sapiens will pay an aggregate cash consideration of between $19.5m and $22m, subject to retention and performance.
The transaction is expected to be completed in early March. Upon completion, Adaptik will become wholly owned by Sapiens.
Sapiens Trends(190 articles)