(Image credit: Adobe Stock.)
Sapiens International Corporation (Holon, Israel) , a global provider of software solutions for the insurance industry has entered into a definitive agreement to acquire privately held StoneRiver, Inc. (Denver), for approximately $102 million in cash, subject to certain conditions. StoneRiver has a broad portfolio of software solutions and services for both the life and property/casualty insurance sectors in North America.
StoneRiver’s product portfolio includes a policy administration suite, rating, underwriting, illustrations, reinsurance, and finance & compliance solutions for all major insurance business lines. Sapiens characterizes StoneRiver’s set of solutions as complementing its own offerings, and providing a platform for Sapiens to accelerate its growth in the U.S. market and globally. StoneRiver currently services more than 200 U.S. insurance customers, and has a team of approximately 500 insurance professionals.
With the acquisition of StoneRiver Sapiens adds to its North American P&C portfolio with StreamSuite, a recently developed insurance suite targeting higher tier carriers, and complementing Sapiens’ Stingray solution, acquired in 2016, which aims at lower-tier carrier customers. The deal will also give Sapiens entry into the workers’ compensation sector, a new area that the company sees as a promising opportunity for growth. Sapiens sees the combination of its existing portfolio with StoneRiver as enabling it to create a comprehensive offering for the North American market.
On the life and annuities side of the industry, Sapiens’ ALIS life and annuities/pensions suite will be complemented by StoneRiver’s stand-alone products in illustration (LifePortraits), eApp (Life Apply) and underwriting (Life Suite). The addition of these products to the ALIS 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, the vendor says.
StoneRiver estimated Non-GAAP full year 2016 revenues are $80 million and the company is profitable, a Sapiens statement reports. Sapiens’ management expects the transaction to be accretive to earnings starting with the third quarter of 2017. The transaction is expected to be completed by the end of the first quarter of 2017. Upon completion, StoneRiver will become wholly owned by Sapiens.