Sapiens to acquire insurance software provider AdvantageGo

By Isha Marathe

April 28 - (The Insurer) - Sapiens International Corporation has signed a definitive agreement to acquire AdvantageGo, a commercial insurance software provider specializing in underwriting workbench solutions for London and global commercial markets.

London-based AdvantageGo is currently owned by IT solutions and technology consulting services provider Coforge.

The acquisition is structured as a cash deal, based on an enterprise value of 43 million pounds ($57.18 million).

The transaction will allow Rochelle Park, New Jersey-based Sapiens to penetrate the London specialty market and fortify its reinsurance offerings. The AdvantageGo platform enables brokers and underwriters to negotiate coverage through Lloyd's and the London company market.

AdvantageGo is also expected to strengthen Sapiens' value proposition in the North American P&C market by enhancing its capabilities for insurers operating in complex specialty and commercial lines.

For the full year 2024, AdvantageGo's revenue was 15 million pounds based on U.S. Gaap, with approximately 50% from recurring revenue.

Once the transaction is completed, which Sapiens expects to happen in the "coming weeks," AdvantageGo will become wholly owned by Sapiens.

AdvantageGo has made strategic investments in its product in recent years, which led it to report a loss of 9 million pounds in 2024.

As Sapiens integrates AdvantageGo's offerings into the broader portfolio and continues to support its market penetration, it expects the workbench provider to grow at a double-digit rate in 2026.

Sapiens expects AdvantageGo's profitability to become accretive to Sapiens' profit starting in 2027, driven by revenue growth and integration synergies with Sapiens.

BDA Partners and William Blair acted as financial advisors to Coforge in connection with the transaction. JSA acted as legal advisor to Coforge, and Meitar acted as legal advisor to Sapiens.