Sapiens Expands P&C Portfolio with AdvantageGo Acquisition

Sapiens International Corporation, which provides software solutions for the insurance industry, has acquired AdvantageGo, a commercial insurance software provider specialising in underwriting workbench solutions, for £43m (US$57.6m).

The acquisition will enhance Sapiens' property and casualty (P&C) offerings with the addition of underwriting workbench capabilities, which help insurers manage, assess and write risk. The transaction is expected to be finalised in the coming weeks.

AdvantageGo, which reported revenues of £15m (US$20m)  for 2024 based on US GAAP accounting standards, will become wholly owned by Sapiens upon completion. 

Approximately 50% of AdvantageGo's revenue is recurring, with a gross margin that Sapiens reports will be accretive to its own margins.

The company made strategic investments in its product portfolio in recent years, resulting in a £9m (US$12m) loss in 2024. 

Sapiens projects AdvantageGo will achieve double-digit growth in 2026, with profitability expected to improve and become accretive to Sapiens' profits from 2027.

London market expansion

This acquisition aligns with Sapiens' strategy to penetrate the London Specialty Market, a global hub for complex and high-risk insurance and reinsurance where brokers and underwriters negotiate bespoke coverage through Lloyd's of London and the London Company Market.

Sapiens plans to integrate AdvantageGo's underwriting workbench—a software solution that centralises data and tools for insurance underwriters—into the Sapiens Insurance Platform for P&C whilst also offering it as a standalone product.

This integration will serve existing Sapiens customers in Europe, the Middle East, Africa, and Asia-Pacific regions. 

The enhanced capabilities will also strengthen Sapiens' position in the North American P&C market, particularly for insurers operating in complex specialty and commercial lines.

Martin Higgins, Senior Principal at Datos Insights, a financial services research and advisory firm, says: “The underwriting workbench market has grown significantly as insurers recognise the value of sophisticated decision support tools. 

“Sapiens is breaking ground by being the first major core system vendor to integrate these capabilities directly into their platform. 

“This approach delivers immediate value for insurers handling complex specialty and commercial lines, addressing a critical gap in the current technology landscape.”

Strategic fit and integration plans

The cash transaction, based on an enterprise value of £43m (US$57.6mm), reflects Sapiens' approach of making targeted acquisitions to accelerate business growth.

Roni Al-Dor, Sapiens President and CEO, adds: “Sapiens' growth strategy includes targeted acquisitions that accelerate our business. 

“The acquisition of AdvantageGo aligns with our mission, and expands our portfolio with complementary solutions, extends our global footprint, and deepens our talent pool.”

Roni continues: “We are excited to welcome AdvantageGo's team and loyal customers to Sapiens. We remain committed to investing in AdvantageGo's products, ensuring continuity, innovation, and long-term value for their customer base.”

BDA Partners and William Blair acted as financial advisors to Coforge in the transaction. JSA acted as legal advisor to Coforge, while Meitar served as legal advisor to Sapiens.

Sapiens, listed on both NASDAQ and the Tel Aviv Stock Exchange under the ticker SPNS, operates in the specialised insurance software market.

Ian Summers, Global Business Leader of AdvantageGo, concludes: “Joining Sapiens means becoming part of a leading global product organisation that will amplify our capabilities and enhance our solutions, creating greater opportunities for our clients and team. 

“We look forward to integrating our products into Sapiens Insurance Platform to deliver a seamless and powerful offering for the European and North American markets. We are committed to ensuring a smooth transition and continued service excellence for all our customers.”

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