Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector, today announced it has signed a definitive agreement, subject to closing conditions, to acquire Ibexi Solutions Private Limited (Ibexi), an India-based provider of insurance business and technology solutions.
Closing of the acquisition is expected to occur in the second quarter of 2015.
IBEXI, which was founded in 2001, has a team of 180 insurance and technology professionals. The company is working in Asia Pacific, servicing 18 insurers in both the property and casualty (P&C) and life, pension and annuites(L&P) markets, including leading insurance companies in India. With its strong local management and sales presence in Asia Pacific, IBEXI has been selling the Sapiens IDIT Software Suite for seven years and providing support for its existing customer base in that region.
IBEXI offers IT business consulting services to insurance companies on both core insurance and supporting systems. In addition to its own insurance products - business intelligence (BI) and insurance portal offerings - IBEXI also provides implementation services for insurance business solutions, including for external products. IBEXI's insurance products will extend Sapiens' portfolio of solution offerings, providing Sapiens' clients with immediate benefits.
Following the acquisition, IBEXI will manage the Sapiens Asia Pacific domain, and will establish a solid footprint for Sapiens as a regional center. IBEXI, which has previously managed several successful go-live projects, will enhance the Sapiens team with an expanded and highly experienced delivery team across all Sapiens solutions globally. With a larger and more geographically dispersed professional services team, Sapiens will be well positioned to provide services and support to its global customers with better cost efficiency.
IBEXI's annual revenues for the period ended December 31, 2014, are approximately $4.3 million dollar. Without factoring in IBEXI's revenues generated from sales to Sapiens, IBEXI's 2014 full year revenues totaled $3.6 million dollars.
"I am proud of IBEXI's accomplishment as a provider of solutions and IT services to the Asia Pacific insurance industry," said Ashok Bhavnani, IBEXI's CEO. "I am confident that IBEXI's domain expertise, our business intelligence and insurance portal offerings, and proven delivery capabilities will bring great value to Sapiens and its clients."
"I look forward to being part of the Sapiens team and sharing my nearly 25 years of experience. With the backing of Sapiens' resources - its comprehensive product portfolio, insurance and financial services experts, and its strong financial position - we will continue to expand Sapiens business in Asia Pacific with existing and new customers."
"I believe that this acquisition will allow us to better serve the Asia Pacific insurance market," said Roni Al-Dor, president and CEO of Sapiens. "It will expand our product portfolio with complementary solutions and will enable us to better achieve our targets of operational margin expansion."