Sapiens International Corp. said it plans to pay nearly $20 million for rival software company Delphi Technology in order to more deeply penetrate the medical professional liability insurance space.
Boston, Mass.-based Sapiens, founded more than 35 years ago, provides software products and services for the insurance industry. Delphi, also based in Boston, launched in 1989 and sells software with an eye on P/C carriers and medical malpractice cover (specifically medical professional liability or healthcare professional liability). Delphi employs more than 100 people and claims to have 40 insurance customers. Its specialties include policy administration, claims management, and financial and risk management.
Sapiens said the acquisition should be accretive to profit in early 2021. Delphi’s 2019 full-year revenue was $15 million with operational loss on the bottom line, the companies said.
Sapiens President and CEO Roni Al-Dor said that the acquisition will help it target the MPL market in a much more focused way.
“The U.S., where our suite of digital and cloud offerings has increased our market share, is a significant growth driver for Sapiens,” Al-Dor said in prepared remarks. The Delphi acquisition expands Sapiens’ presence in the MPL market and improves our prospects in this key region,” Al-Dor said. “The combination of Delphi’s deep knowledge base and customer portfolio – combined with Sapiens’ solutions, relationships, and resources – will enhance our position as a leading solution provider in the U.S.”
Sam Fang, Delphi’s founder and CEO, said in prepared remarks that Delphi will help the combined companies accomplish “a much deeper penetration of the MPL market” than they would have on their own.
After the acquisition, Sapiens will continue to support Delphi’s products and customers, who can now benefit from a variety of complimentary products and services. In addition, Sapiens will leverage Delphi’s expertise and know-how to further enhance its CoreSuite for Property & Casualty to provide a holistic, multi-line, comprehensive solution to the MPL market.
The Sapiens/Delphi deal follows news that Majesco, a cloud insurance software firm, would be acquired by private equity operation Thoma Bravo for $594 million. In that agreement, the bid is to take Majesco private.
Source: Sapiens/Delphi Technology