Advent To Acquire Sapiens In $2.5 Billion Push For AI-Powered Insurance Solutions
Under the agreement, shareholders will receive $43.50 per share in cash, a 64% premium over Sapiens' closing price on Aug. 8, 2025.
The deal has been unanimously approved by the company's board and is expected to close in late 2025 or early 2026, subject to shareholder and regulatory approvals.Formula Systems (1985) Ltd., an existing investor, will retain a minority stake following the acquisition.
Sapiens, a leading provider of SaaS-based software solutions for the insurance industry, said the partnership will accelerate innovation, particularly in AI and digital offerings, while expanding its global reach.
CEO Roni Al-Dor called the buyout a 'significant milestone' that delivers strong shareholder value and reinforces the company's ability to guide insurers through end-to-end digital transformation.
Douglas Hallstrom, director at Advent, said the firm plans to deepen investment in technology innovation, AI capabilities, and customer-focused strategies. He noted that insurers are increasingly turning to technology to fuel growth, boost profitability, and strengthen resilience, areas in which Sapiens plays a vital role for market-leading carriers worldwide.
Earlier this year, Sapiens expanded its footprint in the Asia-Pacific market with a $22 million acquisition of Candela, aimed at strengthening its life, pension, and annuities offerings in the region. The move aligns with the company's broader strategy to grow in high-potential international markets.
The purchase price also represents a 51% premium to Sapiens' 30-day and 60-day volume-weighted average prices as of Aug. 8, 2025. Upon completion, Sapiens will be taken private and its shares will be delisted.
Advent has secured committed debt and equity financing for the transaction, including $1.3 billion in equity commitments, ensuring a high degree of closing certainty.
Price Action: At last check Wednesday, SPNS shares were trading higher by 42.54% to $42.05 premarket.
Read Next:Image via Shutterstock
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Advent To Acquire Sapiens In $2.5 Billion Push For AI-Powered Insurance Solutions originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Motorsport Games Inc (MSGM) Q2 2025 Earnings Call Highlights: Record Revenue Growth and ...
Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Motorsport Games Inc (NASDAQ:MSGM) reported a significant increase in revenues, up by 37.7% compared to the same period in the prior year, driven by strong sales of the Le Mans Ultimate racing title. The company achieved a milestone by generating income from operations for the first time in its history, with a reported income of $2 million in Q2 2025. The subscription service, Race Control, showed impressive growth with a net monthly recurring revenue growth of 296% in June, indicating strong player engagement and retention. Motorsport Games Inc (NASDAQ:MSGM) successfully launched version 1.0 of Le Mans Ultimate, setting new records for concurrent and daily active users, demonstrating sustained interest beyond the real-world race event. The company is in late-stage negotiations for a console port of Le Mans Ultimate, potentially expanding its audience to Microsoft Xbox and Sony PlayStation platforms. Negative Points Motorsport Games Inc (NASDAQ:MSGM) experienced a decrease in NASCAR-related revenues by $0.9 million, as they are no longer authorized to sell this gaming title starting in 2025. Despite the revenue increase, the company still faces cash flow pressures, with cash and cash equivalents at $2.8 million as of July 31, 2025. The company is reliant on the success of Le Mans Ultimate, which may pose a risk if the game fails to maintain its current momentum. There is uncertainty regarding the outcome of negotiations with potential partners for publishing responsibilities and funding for the console port. The company has not provided any forward-looking guidance, which may leave investors uncertain about future performance and strategic direction. Q & A Highlights Warning! GuruFocus has detected 6 Warning Signs with MSGM. Q: Can you provide an update on the performance and future plans for Le Mans Ultimate? A: Stephen Hood, CEO: Le Mans Ultimate has seen significant updates, including team and driver swap races, which have been well-received. The game set new records for concurrent and daily active users, especially after the release of version 1.0. We are in late-stage negotiations for a console port and exploring partnerships for publishing to expand our audience. The game has driven a 37.7% increase in revenue compared to the previous year. Q: How has the subscription service, Race Control, performed since its launch? A: Stephen Hood, CEO: Race Control has over 200,000 registered accounts and has shown rapid growth with a 296% increase in monthly recurring revenue in June. The quick ratio peaked at 4.66, indicating strong growth and retention. This service is a key revenue line and provides predictable cash flow, allowing for strategic investments. Q: What financial results did Motorsport Games achieve in Q2 2025? A: Stanley Beckley, CFO: Revenues for Q2 2025 were $2.6 million, a 37.7% increase from the previous year. Net income was $4.2 million, up 103% year-over-year. This was the first quarter in the company's history to generate income from operations, with an adjusted EBITDA of $3.7 million. Q: What strategic changes have been made to improve the company's financial health? A: Stephen Hood, CEO: We sold the NASCAR license to focus on higher-quality games with potential for additional revenue streams. We have also settled the remaining balance for Studio 397, giving us full ownership of the technology and IP, which frees up cash flow and strengthens our development capabilities. Q: What are the future growth opportunities for Motorsport Games? A: Stephen Hood, CEO: We are exploring expanding our core technologies and developing new game franchises, possibly outside the sim racing endurance market. We are also in discussions with investors like PyMax to enhance the VR sim racing scene and explore new business opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
6 minutes ago
- Yahoo
Linamar Corp (LIMAF) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $2.6 billion, down 7% from last year. Net Debt to EBITDA: 1.02 times. Free Cash Flow: Nearly $180 million. Mobility Segment Operating Earnings Growth: 20%. Mobility Segment Margins: Normal range of 6-8%. Sales in Industrial Business: Down 22%. Normalized Net Earnings: $168.4 million or 6.4% of sales. Normalized EPS: $2.81. Cash Flow: $178 million. Industrial Sales: $688.2 million, down 22.4%. Mobility Sales: $2 billion, down 0.4%. Normalized Industrial Operating Earnings: $103.3 million, down 37.1%. Normalized Mobility Operating Earnings: $150.9 million, up 19.6%. Cash Position: $1 million as of June 30. Net Debt to EBITDA (Leverage): 2.02 times. Available Credit: $914.6 million. Liquidity: $1.9 billion. NCIB Program: Nearly 1.8 million shares purchased, equating to nearly $100 million. Warning! GuruFocus has detected 3 Warning Sign with GLASF. Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Linamar Corp (LIMAF) demonstrated strong earnings growth in its Mobility segment, with a 20% increase in operating earnings and margins returning to the normal range of 6-8%. The company maintained a prudent balance sheet with a net debt to EBITDA ratio of 1.02, well below the target of 1.5, indicating strong financial health. Linamar Corp (LIMAF) generated nearly $180 million in free cash flow, attributed to strong earnings and careful management of capital expenditures and working capital. The company successfully avoided significant impacts from US tariffs due to its strategic production locations and compliance with USMCA regulations. Linamar Corp (LIMAF) achieved market share gains in key areas across its business segments, helping to mitigate the effects of soft markets. Negative Points Overall sales for Linamar Corp (LIMAF) decreased by 7% compared to the previous year, with significant declines in the industrial segment, particularly in agriculture and access markets. The company's normalized net earnings and EPS were down compared to the previous year, despite being slightly up from Q1. The industrial segment experienced a 22% decline in sales, driven by lower agricultural and access equipment sales, despite market share growth. The Mobility segment faced challenges with continued downturns in the European and North American automotive markets, including the electric vehicle sector. Linamar Corp (LIMAF) anticipates double-digit sales and operating earnings declines in its industrial segment for Q3, due to expected down markets in agriculture and access. Q & A Highlights Q: Can you discuss the outlook for the Mobility segment's margins for next year, given the current year's performance? A: Linda Hasenfratz, Executive Chairman of the Board, explained that the outlook for 2026 has been tempered due to a softer market outlook and a stronger-than-expected 2025. However, they still expect solid performance from launches and operational excellence initiatives. Jim Jarrell, CEO, added that new business takeover work will also contribute positively next year. Q: What is causing the unfavorable mix in the Industrial segment, and are there any pricing headwinds? A: Jim Jarrell, CEO, noted that last year's favorable mix is not present this year, impacting results. Pricing has been more aggressive this year to move equipment. Linda Hasenfratz added that the agricultural market's softness is impacting the segment, with Ag business being a smaller portion of the segment compared to last year. Q: Can you explain the volume outperformance of Skyjack relative to the market? A: Jim Jarrell highlighted that the gains are primarily driven by North America, especially in scissor lifts. The order intake is notably up, and the backlog remains consistent. Linda Hasenfratz mentioned that market share is up for Skyjack in key products, particularly scissors, which is driving unit growth. Q: What is Linamar's appetite for acquiring distressed suppliers, and how do you ensure profitability? A: Jim Jarrell stated that Linamar is interested in acquiring distressed suppliers if it aligns with their OEMs and ensures a sustainable, profitable future. Linda Hasenfratz emphasized that any acquisition must be profitable from day one, and commercial agreements are made upfront to support this. Q: How did Linamar achieve such strong Mobility margins in Q2 despite flat revenue? A: Jim Jarrell attributed the strong margins to lean discipline, cost reductions, and operational efficiencies. Linda Hasenfratz added that right-sizing in Europe and commercial adjustments for higher costs also contributed to the margin expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 minutes ago
- Yahoo
Coherent Corp (COHR) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Moves ...
Full Year Revenue: $5.81 billion, up 23% year over year. Q4 Revenue: $1.53 billion, up 16% year over year. Data Center Revenue Growth: 61% increase for the full year; 38% year over year growth in Q4. Communications Revenue Growth: 23% increase for the full year; 42% year over year growth in Q4. Non-GAAP Gross Margin: 37.9% for the full year, up 358 basis points; 38.1% in Q4, up 220 basis points year over year. Non-GAAP EPS: $3.53 for the full year, up 191% year over year; $1 per share in Q4, approximately doubling year over year. Debt Reduction: $437 million paid down in fiscal 2025, reducing debt leverage ratio to 2 times. Operating Expenses: $1.17 billion for the full year, up from $998 million in 2024. Sale of Aerospace and Defense Business: $400 million, expected to close this quarter, reducing employee count by approximately 550. Guidance for Q1 Fiscal 2026 Revenue: $1.46 billion to $1.6 billion. Guidance for Q1 Fiscal 2026 Non-GAAP Gross Margin: 37.5% to 39.5%. Guidance for Q1 Fiscal 2026 EPS: $0.93 to $1.13 on a non-GAAP basis. Warning! GuruFocus has detected 9 Warning Signs with COHR. Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Coherent Corp (NYSE:COHR) reported a 23% increase in full-year revenue, reaching a record $5.81 billion, driven by strong growth in data center and communications business. The company achieved a gross margin expansion of 358 basis points, leading to a threefold increase in non-GAAP EPS over the prior year. Coherent Corp (NYSE:COHR) saw a 51% revenue growth in the data center and communications market for fiscal '25, with a 39% year-over-year increase in Q4. The company began initial revenue shipments of its new 1.6T Transceivers and expects volumes to ramp throughout the year, with more meaningful contributions in calendar '26. Coherent Corp (NYSE:COHR) announced a new multi-year agreement with Apple for Vixel products, expected to generate revenue starting in the second half of calendar '26. Negative Points The industrial-related markets saw a revenue decrease of 2% for the year, with a 2% sequential and 8% year-over-year decline in fiscal Q4. The company experienced a drop in silicon carbide demand during fiscal '25, which was a headwind to overall industrial revenue. Coherent Corp (NYSE:COHR) is taking a cautious view on the broad-based industrial market due to macroeconomic uncertainties and tariff concerns. The sequential decline in Q4 gross margin was primarily driven by unfavorable foreign exchange impacts. The company announced the sale of its aerospace and defense business, which contributed to a reduction in revenue and employee count. Q & A Highlights Q: How should we think about the growth outlook for Coherent's data center business in fiscal '26? A: Jim Anderson, CEO, highlighted that Coherent experienced strong growth in fiscal '25, with data center revenue increasing over 60%. Looking forward, the demand outlook remains strong, driven by the ramp of 800 gig and 1.6T transceivers, as well as the optical circuit switch (OCS) product. Coherent expects sequential growth in data center and communications for the upcoming quarter. Q: Can you provide an update on the ramp of the 6-inch indium phosphide platform in Sherman, Texas, and its significance? A: Jim Anderson, CEO, stated that production of the 6-inch indium phosphide line began in August. This platform is expected to significantly increase capacity and reduce costs, providing a competitive advantage. The US manufacturing footprint is a strategic advantage, as evidenced by the expanded partnership with Apple, which will contribute to revenue in the second half of calendar '26. Q: What product categories might be down sequentially at the midpoint of your guidance? A: Jim Anderson, CEO, mentioned that while data center and communications are expected to be up sequentially, industrial-related markets are anticipated to be flat to down, partly due to macroeconomic uncertainties and tariffs. However, over the long term, industrial segments are seen as growth opportunities. Q: Can you discuss the competitive landscape for the optical circuit switch (OCS) and its advantages? A: Jim Anderson, CEO, explained that Coherent's OCS uses digital liquid crystal technology, which is non-mechanical and offers higher reliability compared to traditional MEMS-based solutions. This reliability is crucial for AI data centers, and Coherent is seeing strong customer engagement and demand for the product. Q: How is Coherent addressing the competitive dynamics in the transceiver market, particularly with Chinese competitors? A: Jim Anderson, CEO, noted that Coherent believes it gained market share in fiscal '25, especially in higher data rate transceivers. The company is well-positioned due to its technology roadmap and resilient supply chain, which includes US manufacturing and vertical integration. Pricing has been as expected, and Coherent is ramping capacity to meet demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
