Sources inform ''Globes'' that financial services software developer Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) plans to raise $20-30 million, and is writing a draft prospectus and meeting US investment banks for this purpose. Executives have also met with potential investors.
If the offering goes ahead, it may include an offer to sell by shareholders, although not controlling shareholder Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT), which recently increased its stake in the company to 57.3%. Private equity fund KCPS & Co. owns 9.8% of the company following the merger with FIS Solutions in a share swap deal in 2011.
Double-digit growth
Sapiens today reported double-digit revenue and profit growth for the fourth quarter and full year of 2012. Fourth quarter revenue rose 27% to $31.2 million from $24.6 million for the corresponding quarter of 2011. GAAP-based net profit tripled to $3.3 million for the fourth quarter from $1 million for the corresponding quarter, and non-GAAP net profit rose 35% to $3.7 million ($0.09 per share) from $2.8 million.
Full year revenue rose 63% to $113.9 million from $69.9 million in 2011. GAAP-based net profit doubled to $11.8 million in 2012 from $5.9 million in 2011, and non-GAAP net profit rose 57% to $14.7 million ($0.35 per share) from $9.4 million.
Cash flow from operations more than doubled to $18.8 million in 2012 from $8.4 million in 2011, and the company had $29.1 million in cash and cash equivalents at the end of the year.
Sapiens president and CEO Roni Al Dor said, "We believe that the huge insurance industry built on legacy systems will transform over the next decade to new technology and external vendors. We also believe that Sapiens is well positioned to become one of the dominant players in this market over time, and our recruitment of over 100 new employees, investment in R&D and end-to-end coverage of core system solutions for all insurance segments, is focused on solidifying our position as a marketplace leader and further accelerating our growth."
Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2013
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