06:23 AM EDT, 08/13/2025 (MT Newswires) -- Sapiens International ( SPNS ) on Wednesday agreed to be acquired and taken private by private equity firm Advent in an all-cash deal that values the insurance software solutions provider at about $2.5 billion.

Shareholders of Sapiens will receive $43.50 per share in cash under the terms of the transaction, reflecting a premium of roughly 64% to the company's closing share price on Aug. 8. Sapiens' US-listed shares surged 42% in the most recent premarket activity.

"Following a deliberate process, the board of directors approved this transaction, which delivers an excellent outcome for Sapiens' shareholders, providing them a substantial cash value at an attractive premium," Sapiens Chief Executive Roni Al-Dor said in a statement. "We are excited to enter the next chapter for Sapiens in partnership with Advent to continue supporting insurance carriers with their entire transformation journey."

Sapiens anticipates the deal to accelerate its innovation roadmap in software-as-a-service-based insurance solutions and expand its global reach. The transaction, which requires approval from regulators and clearance from Sapiens' investors, is expected to complete in the fourth quarter or in the first quarter of 2026.

Sapiens will no longer trade publicly once the deal closes, while the company's current shareholder, Formula Systems, will retain a minority stake in the firm.

"We are delighted to partner with Sapiens to support its next phase of innovation," Advent Director Douglas Hallstrom said. "We will work with the company to accelerate investment into technology innovation, (artificial intelligence), and customer centricity."

Advent has secured committed debt and equity financing for the deal, including an equity contribution of $1.3 billion, according to the companies.

In May, Sapiens reported first-quarter adjusted earnings of $0.37 a share, up from $0.36 the year before. Revenue inclined to $136.1 million from $134.2 million in the prior-year quarter. At the time, the company said it expected adjusted revenue to be in a range of $574 million to $578 million for 2025, up from its previous guidance of $553 million to $558 million.