Israel-based insurance software firm Sapiens International Corp. has agreed to acquire privately-held insurance technology firm StoneRiver Inc. for approximately $102 million in cash.
Headquartered in Denver, StoneRiver’s software product portfolio is comprised of a policy administration suite, rating, underwriting, illustrations, reinsurance, and finance/compliance solutions for property/casualty and life and annuities.
StoneRiver currently serves more than 200 U.S. insurance customers and has a team of approximately 500 insurance professionals.
Roni Al-Dor, Sapiens president and CEO, said StoneRiver’s offerings complement Sapiens’ own portfolio and the deal will allow Sapiens to accelerate its growth in North America and, specifically, in the U.S. market.
StoneRiver’s StreamSuite targets higher tier carriers, complementing Sapiens’ Stingray that targets the lower tier in the sector.
The company will also gain entry into the workers’ compensation sector, a new area for Sapiens.
Combining Sapiens’ and StoneRiver’s reinsurance product is expected to create a more comprehensive market offering that will allow Sapiens to better serve its customers.
“The continuing wave of insurance technology M&A activity demonstrates how insurance companies value working with providers who offer a full suite of solutions. Sapiens’ acquisition of StoneRiver is a major step forward in its global growth,” said Donald Light, director in Celent’s North America Property/Casualty Practice, in prepared remarks.
In the past six years Sapiens has completed eight acquisitions. In June, it acquired Maximum Processing, a policy administration suite for P/C carriers, managing general agencies, third party administrators and brokers in the U.S.
Sapiens’ life and annuity offering will be enhanced by StoneRiver’s stand-alone products in illustration (LifePortraits), eApp (Life Apply) and underwriting (Life Suite).
StoneRiver estimated Non-GAAP full year 2016 revenues are $80 million and the company said it is profitable. Sapiens’ management expects this 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.
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