(Historic center of Warsaw. Photo credit: Paul Kowalow.)
Sapiens International Corp. (Holon, Israel) has acquired Insseco Sp. Z o.o., a Warsaw-based insurance software provider wholly-owned by Asseco Poland S.A., the largest IT company listed on Warsaw stock exchange, and a major European software vendor. Asseco also controls Formula, Sapiens’ controlling shareholder. The transaction, which is expected to close by early August 2015, will give Sapiens access to the Polish market and expand the company’s European footprint and customer base.
“Sapiens continues its global expansion and implementation of its growth strategy via organic growth and M&A,” comments Roni Al-Dor, President and CEO, Sapiens. “With Sapiens’ solution offerings and Insseco’s strong local presence, we expect to strengthen our presence in the Polish and European market.”
Insseco has an established presence in the Polish insurance market and services major insurance customers in Poland, including top tier insurance carriers, according to a Sapiens statement. With a team of 140 insurance professionals, Insseco has domain expertise in both life and pension and P&C insurance. Sapiens says expects to enrich its workforce with Insseco’s team, and the vendor will establish a regional delivery and development center in Poland to support its global operations.
“Sapiens has expanded its team with Insseco’s professionals, in order to improve delivery and service of our solutions, which we believe will allow us to better serve our customers globally,” says Al-Dor.
On a trailing twelve month basis, Insseco’s revenue was $11.5 million, Sapiens reports. Management expects the transaction to be accretive to earnings in the third quarter of 2015 and beyond. Sapiens will pay 34.3 million Polish Zloty ($9.1 million) as consideration in the transaction. Depending on the achievement of revenue goals over the next five years, Sapiens will pay additional consideration to the seller.
The acquisition of Insseco is the latest in Sapiens’ continued expansion of its global presence, customer base and delivery capabilities. In March 2015, Sapiens acquired IBEXI Solutions, an India-based provider of insurance business and technology solutions in Asia Pacific.