Insurance software solutions provider StoneRiver has agreed to a $102 million takeover by Sapiens International.
Sapiens will acquire StoneRiver’s product portfolio comprised of a policy administration suite, rating, underwriting, illustrations, reinsurance, and finance & compliance solutions for all major insurance business lines, across both property and casualty (P&C) and life and annuities (L&A).
The definitive agreement is subject to certain adjustments. StoneRiver estimated Non-GAAP full year 2016 revenues at $80m and the company is profitable, a statement from Sapiens said.
StoneRiver currently services more than 200 US insurance customers, and has a team of approximately 500 insurance professionals.
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“Joining forces with StoneRiver significantly expands Sapiens’ presence and scale in the North American insurance industry, and specifically helps us further accelerate our growing market footprint in the US P&C space,” said Roni Al-Dor, Sapiens president and CEO.
He explained that the deal aligns with the company’s mergers and acquisitions strategy. This is centered on growing its customer base, expanding geographically and adding complementary solutions to its portfolio, and ensuring high quality of services and product delivery. Sapiens has completed and integrated eight acquisitions in six years.
Sapiens’ management expects the transaction to be accretive to earnings starting with the third quarter of 2017. The transaction is expected to be completed by the end of the first quarter of 2017. Upon completion, StoneRiver will become wholly owned by Sapiens.
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