- Sapiens International (SPNS, Financial) to acquire AdvantageGo for £43 million to enhance global P&C platform.
- AdvantageGo's integration expected to drive double-digit growth by 2026, profitability by 2027.
- Acquisition strengthens Sapiens' position in the London Specialty Market and global commercial insurance segments.
Sapiens International Corporation (SPNS), a leader in software solutions for the insurance industry, has announced a definitive agreement to acquire AdvantageGo, a prominent commercial insurance software provider. The £43 million cash deal is strategically aimed at broadening Sapiens' global property and casualty (P&C) platform, notably enhancing its underwriting capabilities essential for managing complex risk assessments.
AdvantageGo reported revenues of £15 million for 2024, with 50% derived from recurring streams, though it operated at a £9 million loss due to strategic investments. Despite this, the acquisition is projected to stimulate a double-digit growth rate for AdvantageGo by 2026. Moreover, the integration is expected to become profit-accretive for Sapiens by 2027, especially as synergies materialize from combining resources.
This acquisition is in line with Sapiens' strategy to deepen its footprint in the London Specialty Market, which is a global hub for high-risk insurance and reinsurance. By incorporating AdvantageGo's advanced underwriting workbench as both part of its existing P&C platform and as a standalone solution, Sapiens aims to deliver enhanced value to its P&C customers in Europe, the Middle East, Africa, and the Asia-Pacific regions.
Industry experts view this move as groundbreaking, positioning Sapiens as the first major core system vendor to integrate these specialized capabilities directly into their platform. This strategic positioning is set to bolster Sapiens' market competitiveness, providing insurers with superior decision support tools for handling complex specialty and commercial lines.
The transaction is anticipated to close within the coming weeks, upon which AdvantageGo will become a wholly owned subsidiary of Sapiens International. This acquisition underscores Sapiens' commitment to expanding its global footprint while enhancing the technological capabilities of its insurance platforms.
