Insurance software provider Sapiens International Corp. has agreed to acquire Delphi Technology Inc., a software vendor focused on the medical professional liability insurance carrier markets.
The total consideration is up to $19.5 million in cash.
Delphi reported 2019 full-year revenue of $15 million and an operational loss.
The company offers core products for MPL, including policy administration, claims management, and financial and risk management. Boston-based Delphi has more than 100 employees and approximately 40 insurance customers.
Sapiens sees the acquisition as a way to expand its presence in the MPL market. It anticipates the acquisition to be accretive to profit in early 2021.
Sapiens said it will continue to support Delphi’s products and customers and work to further enhance its own property/casualty products to provide a comprehensive offering to Delphi’s customers.
“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,” said Martina Conlon, executive vice president, Research & Consulting, Novarica, in prepared remarks. “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.”
Sapiens offers digital software platforms and services for the property/casualty, life, pension & annuity, reinsurance, financial and compliance, workers’ compensation and financial markets.
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