Sapiens Acquires German-Based InsurTech sum.cumo

The primary goal of the acquisition, worth €28.4 million, is to expand Sapiens’ presence in the DACH region.

(Chilehaus, Hamburg. Photo credit: Thomas Ulrich.)

Sapiens International Corporation, (Holon, Israel), a global provider of software solutions to the insurance industry, has acquired sum.cumo, a Hamburg, Germany-based technology provider that offers digital consumer-centric solutions to the insurance sector for up to €28.4 million.

Craig Beattie, Senior Analyst, Celent.

Sum.cumo services insurers in the DACH region (Germany, Switzerland and Austria), helping them to set up their business model and obtain a marketing edge. The company provides consultants to support user-experience, marketing and technology initiatives in support of the launch of e-commerce environments in the region.

The acquisition’s primary goal is expanding Sapiens’ presence in the DACH region. sum.cumo is expected to reach 2019 non-GAAP revenues of €15 million and low single-digit profitability. The total consideration is up to €28.4m (€24.4m in cash and €4m in Sapiens shares), including consideration for future retention and performance over the next four years. The acquisition will be accretive to profit starting from the second half of 2020. Consummation of the transaction is subject to certain regulatory approvals. The closing is expected for mid-Q1, 2020.

sum.cumo was established in 2010 and was formerly owned by die Bayerische Versicherungsgruppe (Munich), currently one of its customers. sum.cumo has more than 150 technology and insurance experts, and serves customers in Germany and Switzerland from offices in Hamburg, Düsseldorf and Zurich.

Sapiens says the acquisition will enable it to expand its footprint by offering Sapiens’ complete product and services portfolio in the DACH region, alongside sum.cumo’s offerings. Sapiens reports that it plans to continue to invest in and support sum.cumo’s offerings, and enhance Sapiens’ digital offerings worldwide via sum.cumo’s solutions and expertise.

Roni Al-Dor, President and CEO, Sapiens.

“The large and lucrative German market and overall European market are extremely attractive ones for insurance software solution providers,” comments Craig Beattie, senior analyst in Celent’s (Boston) insurance practice. “This acquisition shows Sapiens’ commitment to enlarging its presence in the region and expanding the Sapiens DigitalSuite, to better service customers who wish to follow the insurance e-commerce strategy.”

Part of Sapiens’ Long-Term Growth Strategy

“Sapiens has implemented a growth strategy that incorporates acquisitions to accelerate our business,” comments Roni Al-Dor, Sapiens president and CEO. “We are a strategic buyer that acquires companies that fit our mission, vision and culture. sum.cumo met our parameters as one of the most innovative InsurTech companies in the region. Penetration into the DACH region has been part of Sapiens’ long-term growth strategy and we have started to gain traction in this region with Sapiens products. With sum.cumo’s local and talented team and customers, we should significantly enhance our presence there.”

“Joining with Sapiens is a wonderful opportunity for sum.cumo’s team and clients. As a scale-up InsurTech company, we believe that Sapiens will be the right home for us,” comments Björn Freter, founder and co-CEO, sum.cumo. “We will continue to robustly support our customers, while also helping them evolve and thrive.”

“sum.cumo found the best possible new home,” comments Herbert Schneidemann, CEO, die Bayerische Versicherungsgruppe. “Sapiens’ focus on insurance and technology software solutions and services will enable this innovative team to keep growing and to better serve customers in the DACH region. We enjoyed working with sum.cumo during the last few years and will continue to benefit from sum.cumo’s offerings, while collaborating on mutually-beneficial offerings in the future.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at or (503) 936-2803.

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