Sapiens International has announced the acquisition of AdvantageGo, a leading provider of commercial insurance software, for £43 million in cash. This strategic move will significantly enhance Sapiens’ property and casualty (P&C) platform, particularly sharpening its underwriting workbench for the London and global commercial markets.
By integrating AdvantageGo’s technology, Sapiens aims to streamline risk management and underwriting processes, offering better solutions for complex insurance markets like the London Specialty Market. The deal also positions Sapiens to strengthen its support for the growing reinsurance sector.
AdvantageGo reported £15 million in revenue for 2024, with about half coming from recurring income streams. Although it posted a £9 million loss due to strategic investments, AdvantageGo is expected to achieve double-digit growth by 2026 and become profit accretive for Sapiens by 2027.
Financially, Sapiens remains strong, boasting a market capitalization of around $1.5 billion, more cash than debt, and a healthy current ratio of 2.24. Its revenue over the last twelve months stands at $542 million, with a solid gross profit margin of 44%.
The acquisition is expected to close in the coming weeks after meeting customary conditions. Sapiens believes this move will not only drive growth but also strengthen its competitive edge in the insurance software and reinsurance markets.