A Center Valley-based software company that provides policy administration solutions for property and casualty insurance carriers has been acquired by an Israel-based global software solutions provider for around $20 million.
Sapiens International Corp., which said it is growing its presence in the financial services sector, entered into an agreement Feb. 7 to acquire Adaptik, which has 34 employees.
Sapiens said it will pay an aggregate cash consideration of between $19.5 million and $22 million, subject to retention and performance.
Sapiens said the acquisition will enable Sapiens to provide North American property and casualty carriers with an enhanced platform, which will improve Sapiens’ competitive position and enable it to increase its market share in the North American insurance market.
The company said this is the latest acquisition as it attempts to grow in the market.
“We continue to expand in the North American insurance space, a key market for Sapiens’ planned growth,” said Roni Al-Dor, Sapiens president and CEO.
Al-Dor said Sapiens, to service lower-tier insurance carriers, earlier acquired Maximum Processing of Garner, N.C., and its Stingray system, followed by the acquisition of StoneRiver Inc. of Denver in for the mid- to upper tiers.
“Now, enhanced by the Adaptik acquisition, those transactions enabled Sapiens to establish a stronger presence in the U.S.,” Al-Dor said.
Adaptik Corp. was founded in 2000. Adaptik’s expected full-year 2017 revenues were $12 million, based on generally accepted accounting practices.