Under the terms of the deal, Sapiens shareholders will receive $43.50 per share in cash, representing a 64% premium over the company’s undisturbed closing price of $26.52 on Aug. 8, 2025. Existing shareholder Formula Systems will retain a minority stake in the business. Upon completion, expected in late 2025 or early 2026, Sapiens will become a privately held company.

Sapiens CEO Roni Al-Dor said the transaction “marks a significant milestone” for the company and delivers “an excellent outcome” for shareholders while reinforcing its commitment to product innovation and service excellence. “We are excited to enter the next chapter for Sapiens in partnership with Advent to continue supporting insurance carriers with their entire transformation journey,” he added.

Advent director Douglas Hallstrom said the acquisition comes at “a critical time of market change” as insurers increasingly turn to technology for growth, resilience, and profitability. “We will work with the company to accelerate investment into technology innovation, AI, and customer centricity,” Hallstrom said.

Formula CEO Guy Bernstein added that the firm’s ongoing stake reflects confidence in the partnership’s potential to “accelerate the transition to AI and SaaS, delivering the next generation of insurance solutions for our customers.”

The transaction has been unanimously approved by Sapiens’ board of directors and is subject to shareholder and regulatory approval. Advent has secured committed debt and equity financing, including $1.3 billion in equity from funds it advises.

Financial advisors on the deal include William Blair & Company for Sapiens and Citi for Advent, with Latham & Watkins, Meitar Law Offices, Kirkland & Ellis, and Herzog Fox Neeman serving as legal counsel.