Sapiens International (SPNS.Q) penned an agreement to acquire Delphi Technology. Sapiens provides software solutions for the insurance industry, and Delphi Technology offers software specifically for property and casualty carriers, with a specific focus on markets on the medical professional liability (MPL)/healthcare professional liability (HCPL) markets. Also known as medical malpractice.
“Industry consolidation has challenged MPL insurers to deliver differentiated products and services for the full scope of healthcare providers, including large institutions and networks, individuals, small groups and captives. Insurers need a strong technology partner to deliver flexible, digital offerings with best-in-class service options. The Delphi acquisition gives Sapiens rich MPL domain knowledge and a customer base to advance its position in the U.S,” said Martina Conlon, executive vice president, research & consulting of Novarica.
Boston-based Delphi brings over 100 employees and 40 insurance customers to the table. Their MPL products include policy administration, claims management, and financial and risk management. Sapiens will provide ongoing support for Delphi’s products and customers, who will now have access to more complimentary products and services.
“I am pleased to welcome the Delphi team as we strive to create additional value for customers. The U.S., where our suite of digital and cloud offerings has increased our market share, is a significant growth driver for Sapiens. The Delphi acquisition expands Sapiens’ presence in the MPL market and improves our prospects in this key region. The combination of Delphi’s deep knowledge base and customer portfolio – combined with Sapiens’ solutions, relationships, and resources – will enhance our position as a leading solution provider in the U.S,” said Roni Al-Dor, Sapiens president and CEO.
Sapiens will benefit from Delphi’s expertise and ability to improve its CoreSuite for Property & Casualty in order to provide a multi-line, solution to the MPL market.
“Sapiens’ advanced technologies and scalable services models, backed by Delphi’s market presence, extensive client relationships, and domain expertise, will enable a much deeper penetration of the MPL market. Together, Delphi and Sapiens will create exciting new opportunities for employees, customers, and prospects. Energized for the future, we eagerly look forward to seamlessly integrating with Sapiens to serve the MPL market,” said Sam Fang, founder and CEO of Delphi Technology.
The primary goal behind the acquisition is expanding Sapiens’ MPL market presence. Delphi brought in $15 million in revenue in 2019 and the total amount being offered for the acquisition is $19.5 million in cash. Sapiens anticipates the acquisition to increase their revenue-stream in early 2021.