Why Is Sapiens Stock Soaring Over 40% Premarket?

Israeli software company Sapiens International Corp. NV said on Wednesday that private equity firm Advent will acquire it for $2.5 billion in cash.

The announcement sent the company's U.S.-listed shares, SPNS, up over 40% to $41.46 in premarket trading, and lifted the retail sentiment to 'extremely bullish' from 'bullish' the previous day.

Sapiens' shareholders will receive $43.50 per share, a premium of about 47.5% over the stock's last closing price. Following the deal, Sapiens will become a private company.

Founded in 1982 and listed on the Nasdaq a decade later, Sapeins develops software that enables insurance companies to manage policies, claims, and customer data more efficiently. Its offerings embed artificial intelligence (AI) for better processing and improved risk assessment.

"Insurers are increasingly turning to technology to help unlock growth and profitability... We will work with the company (Sapiens) to accelerate investment into technology innovation, AI, and customer centricity," Douglas Hallstrom, a director at Advent, said in a statement.

Existing Sapiens shareholder Formula Systems will retain a minority stake post the deal close, which is expected in Q4 2025 or Q1 2026, according to a company statement.

The deal comes months after Advent entered exclusive negotiations to acquire Paris-based Kereis, the largest broker for housing protection insurance in France, from Bridgepoint.

Earlier this month, Advent's buyout bid for Spectris fell through as the British scientific instruments maker opted for a rival suitor, KKR.

Sapiens' stock is up over 10% this year.

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