(Photo credit: Albert Kok.)
Sapiens International Corporation (Holon, Israel) has entered into a definitive agreement for the acquisition of Maximum Processing, Inc. (Bradenton, Fla.), the privately held software provider of the Stingray System, a property/casualty insurance administration suite targeted towards the tier 4-5 U.S. market, as well as MGAs, TPAs and insurance brokers. Sapiens expects the transaction to close by the end of June 2016.
The Stingray System is well known in North America, with approximately 30 insurer customers, and has a growing install base of web-based, P&C processing systems in the U.S. market.
“Small carriers remain very active in core system replacement projects and Maximum Processing has had good momentum in this space,” comments Karlyn Carnahan, research director, Celent. “This investment by Sapiens will bring additional expertise, resources and relationships to Maximum Processing, driving their product, service and sales momentum, and making an immediate impact in the North American property and casualty market.”
With this acquisition and the addition of the Stingray System to its portfolio of products, Sapiens gains a foothold in the North American P&C insurance market and an attractive offering for tier-4 and tier-5 insurance carriers, MGAs, TPAs and brokers. Stingray System was designed as a cost-effective, fully functional and highly configurable P&C insurance administration solution for the local U.S. market. Sapiens reports that it will continue to invest in and offer its Sapiens IDIT software suite to mid- and large-sized carriers.
“Sapiens’ IDIT core system suite has enjoyed considerable success in the EMEA property/casualty market,” affirms Donald Light, director of Celent’s North America Property/Casualty Insurance Practice. “Sapiens’ acquisition of Maximum Process could be a first step to building a brand and physical presence in the North American market property/casualty software market—perhaps followed in time by IDIT.
“Our growth strategy continues to include a combination of organic growth and M&A activity,” comments Roni Al-Dor, president and CEO, Sapiens. “The acquisition of Maximum Processing supports Sapiens’ commitment to strengthen our position and offerings in the North American P&C market and increase our overall market share in the region, while we continue expansion of our global presence, customer base and local delivery capabilities.”
“The Stingray System has earned an outstanding reputation and gained an impressive market share,” Al-Dor adds. “Between the Stingray System and our existing IDIT solution, we have market-leading offerings for virtually any size P&C insurance provider.”
Broader, Deeper Reach into North American P&C Market
Sean Pitcher, president of Maximum Processing, comments that as part of the Sapiens team, his group will have a much broader and deeper reach into the property and casualty market in North America. “Our immediate objective is to make the transition into the Sapiens organization both seamless and beneficial to our customers, employees and partners,” he says.
Maximum Processing’s 2015 full-year annual revenue was approximately $6 million, Sapiens reports. The vendor expects this transaction to be accretive to earnings in 2017 and beyond.