Sapiens International Corp. (NASDAQ/TASE: SPNS), an Israel-based provider of global software solutions for the insurance industry, said it agreed to acquire StoneRiver Inc., a Denver, Colorado-based insurance industry solutions provider formerly known as Fiserv Insurance Solutions, for $102 million in cash.

Prior to July 2008, the business units that comprise StoneRiver were part of Fiserv Inc., which was founded in 1984. StoneRiver is a privately held company with two principal ownership groups. Greenwich, Conn.-based private equity firm Stone Point Capital owns the majority of StoneRiver. and Fiserv, a provider of financial services technology, is the minority owner. Stone Point Capital, manager of the Trident Funds with $13 billion in committed capital, is focused on the global financial services industry.

StoneRiver’s product portfolio is comprised of a policy administration suite, rating, underwriting, illustrations, reinsurance, and finance & compliance solutions for all major insurance business lines, across both property and casualty (P&C) and life and annuities (L&A). StoneRiver currently services more than 200 U.S. insurance customers, and has a team of approximately 500 insurance professionals.

“Joining forces with StoneRiver significantly expands Sapiens’ presence and scale in the North American insurance industry, and specifically helps us further accelerate our growing market footprint in the U.S. P&C space,” said Roni Al-Dor, Sapiens president and CEO.

The acquisition of StoneRiver expands Sapiens’ North American P&C portfolio with StreamSuite, a state-of-the-art insurance suite targeting the higher tier carriers, complementing Sapiens’ Stingray solution that is targeting the lower tier in the sector. The company will also gain entry into the workers’ compensation sector, a new area for Sapiens. Combining Sapiens’ and StoneRiver’s reinsurance solutions is expected to create a comprehensive market offering and will allow Sapiens to better serve its customers.

Sapiens L&A offering will be enhanced by StoneRiver’s stand-alone products in illustration (LifePortraits), eApp (Life Apply) and underwriting (Life Suite). The addition of these products to the Sapiens ALIS software suite, together with the company’s digital suite that includes Sapiens Intelligence and Sapiens Portal, will enable Sapiens to offer a comprehensive and even stronger portfolio of solutions to the life and annuities sector.

Sapiens offers core, end-to-end solutions to the global general insurance, property and casualty, life, pension and annuities, reinsurance and retirement markets, as well as business decision management software. The company has a track record of over 30 years in delivering superior software solutions to more than 200 financial services organizations. Sapiens operates through subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific, with over 1,900 professionals.

Sapiens grew out of an initiative, dubbed DB1, undertaken by a group of scientists from Israel’s Weizmann Institute of Science during the 1970s to develop a novel object-oriented application generator for use with mainframe computers, headed by Tsvi Misinai. By 1990, Sapiens had established a client base encompassing Israel, the United Kingdom, Switzerland, Canada, South Africa, Germany, and Venezuela. In 1990, Sapiens was registered as a public limited liability company in the Netherlands Antilles under the name Sapiens International Corporation N.V. In 1991 Sapiens Latin American Division entered the Brazilian market. In 1992 shares of Sapiens began trading on NASDAQ.

In 2001, Formula Systems, until then a minority shareholder, acquired control of the company. Dan Goldstein, then Chairman of The Formula Group, assumed the role of Chairman of Sapiens, and supervised its recovery. The company decided to focus solely on developing software solutions for the insurance industry and grew through a series of acquisitions. The company has a current market capitalization of $709 million.

“We are excited to join Sapiens, a leading software solution provider with a rich 30-plus years of history and proven experience delivering enterprise-scale technology globally,” said StoneRiver president and CEO Gary Anderson.

StoneRiver estimated Non-GAAP full year 2016 revenues are $80 million and the company is reportedly profitable. Sapiens’ management expects the deal to be accretive to earnings starting with the third quarter of 2017.

The deal is expected to be completed by the end of the first quarter of 2017, subject to customary closing conditions.

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