Sapiens International Agrees To Acquire AdvantageGo For Enterprise Value Of GBP 43M

Sapiens International Corporation (NASDAQ:SPNS) (TASE: SPNS), a leading global provider of software solutions for the insurance industry, announced today that it has signed a definitive agreement for the acquisition of AdvantageGo, a leading commercial insurance software provider specializing in underwriting workbench solutions for both London and global commercial markets. This strategic acquisition significantly enhances Sapiens' global P&C proposition, adding cutting-edge underwriting workbench capabilities that address one of the most critical challenges in the P&C industry today: managing, assessing, and writing risk more effectively.

For the full year 2024, AdvantageGo revenues were 15 million British pounds, based on US GAAP, with approximately 50% from recurring revenues, with Gross margin, accretive to Sapiens Gross Margin.

AdvantageGo has made significant strategic investments in its product in recent years. As a result, of these strategic growth investments the company reported a loss of 9 million British pounds in full year 2024. As Sapiens integrates AdvantageGo's offerings into the broader portfolio and continues to support its market penetration, we expect AdvantageGo to grow at double-digit rate in 2026. AdvantageGo profitability is expected to improve over time, and become accretive to Sapiens' profit starting in 2027, driven by revenue growth and integration synergies with Sapiens.

The transaction is expected to be consummated in the coming weeks. Upon completion, Advantage Go will become wholly owned by Sapiens. The acquisition of Advantage Go is structured as a cash deal, based on an enterprise value of 43 million British pounds.