Sapiens Taps APAC Growth With $22 Million Candela Acquisition
On Tuesday, Sapiens International Corporation (NASDAQ:SPNS) disclosed its plan to acquire Candela for an aggregate cash consideration of $22 million.
Candela offers an end-to-end insurance automation platform along with digital services and solutions in the APAC region.
The acquisition is intended to strengthen Sapiens' life insurance offerings and broaden its footprint across Asia-Pacific.
The deal is anticipated to close in the second quarter of 2025, pending regulatory approvals and closing conditions.
Candela's offerings complement Sapiens' Insurance Platform and Life Policy Administration Systems.
By integrating Candela's strengths in Business Process Modelling (BPM) and Case Management, Sapiens plans to enhance its life insurance solutions.
The acquisition will also allow for the integration of standardized workflows across third-party legacy systems, delivering a more streamlined and consistent experience for agents, customers, and administrators.
Roni Al-Dor, CEO and President at Sapiens, said, "We will continue to support Candela's customers and products, increasing value across the entire insurance lifecycle and supporting insurers' digital transformations with a comprehensive product proposition and a diverse range of service capabilities."
Amitabh Poddar, Business Head at Candela, added, "Integrating our intelligent automation solutions into Sapiens' leading insurance software platform will enhance our capabilities and provide even greater value to our customers."
Notably, Candela reported non-GAAP revenues of $8 million for the full year 2024. The transaction is expected to be accretive to Sapiens' profitability beginning in the fourth quarter of 2025.
The deal is expected in the second quarter of 2025 and Candela will operate as a wholly owned subsidiary of Sapiens.
The company disclosed the first quarter of 2025 results on May 8, 2025.
As of December 31, cash and cash equivalent stood at $163.7 million.
Investors can gain exposure to the stock via ARK Israel Innovative Technology ETF (BATS:IZRL).
Price Action: SPNS shares are up 3.30% at $26.28 at the last check on Tuesday.
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