Israeli insurance software company Sapiens International Corporation N.V. (TASE: SPNS; Nasdaq: SPNS), headed by Roni Al-Dor, may be sold. The company has a market cap of $1.8 billion, after a rise of nearly 60% in its share price in the past year. According to a report by Reuters, investment bank William Blair is exploring the possibility of a sale with potential buyers, among them private equity firms. Reuters also reports that the company began the process after identifying interest on the part of entities that could buy it last summer, but suspended it following the outbreak of war, and renewed it recently. The controlling shareholder in Sapiens is holding company Formula Systems (TASE: FORTY; Nasdaq: FORTY), with 43.6% stake.
In 2023, Sapiens had revenue of $515 million, 8.4% more than in 2022. The company posted a GAAP-based net profit of $62.4 million, up 18.7% in comparison with 2022, and a non-GAAP based net profit of $75 million, up 11.7%. At the end of 2023, it had over $200 million in cash and short-term investments, and debt of $59.3 million to the holders of its convertible bonds (most of it long term).
On the release of its fourth quarter 2023 results, Al-Dor said, "Key initiatives that will guide our strategic direction in 2024 include our continued transition to SaaS with all our products, with our evolved Sapiens Insurance Platform, an end-to-end integrated business-led SaaS platform with advanced technology and data capabilities." For 2024, the company gave guidance of $550-555 million revenue and a non-GAAP operating profit margin of 18.1-18.5%.
Sapiens employed 5,000 people worldwide at the end of 2023, 774 of them in Israel.
Published by Globes, Israel business news - en.globes.co.il - on April 7, 2024.
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