Israel Based Sapiens International Seeking Buyout for $2B Valuation

According to people familiar with the matter, Sapiens International, an Israel-headquartered insurance software firm with a market value of nearly $2 billion, is exploring options that include a potential sale. Sapiens is working with investment bank William Blair to gauge interest from potential buyers, including private equity firms, the sources said.

One of the sources said Sapiens started exploring a sale after attracting takeover interest last summer and put its plans on hold after the conflict between Israel and Hamas rocked the region. According to the sources, Sapiens revived its efforts to sell itself a few weeks ago. The sources cautioned that no deal is certain and requested anonymity because the matter is confidential.

Sapiens and William Blair did not respond to requests for comment.

Sapiens shares rose 13 percent on the news Friday afternoon in New York to $35.33.

Sapiens, which has offices in Tel Aviv and New York, provides software to insurers that specialize in property and casualty insurance, workers' compensation, and life insurance.

According to its website, it has more than 5000 employees, with operations in over 30 countries and a customer base of more than 600. According to a regulatory filing, Israeli information technology group Formula Systems, which is controlled by Polish software firm Asseco, holds a 43 percent stake in Sapiens.

Take-private deals in the technology industry slowed down last year due to high-interest rates that made financing leveraged buyouts tougher for private equity firms. Yet the market has thawed more recently. Thoma Bravo agreed to a $1.8 billion deal to take event management software firm Everbridge private in March.

Earlier this week, Clayton Dubilier & Rice agreed to buy a majority stake in information technology provider Presidio from BC Partners for $4 billion. EQT agreed to buy compliance software maker Avetta for about $3 billion from Welsh Carson Anderson & Stowe.