- Sapiens International (SPNS, Financial) has announced the acquisition of Candela for $22 million in cash.
- The acquisition will extend Sapiens' presence in the APAC market and bolster its life insurance product offerings.
- The transaction is expected to be profit-accretive by Q4 2025.
Sapiens International Corporation (NASDAQ: SPNS), a leader in intelligent insurance software solutions, has revealed its acquisition of Candela, an automation company with a strong client base in the APAC region, for $22 million. This acquisition aligns with Sapiens' strategy to expand its footprint in the life insurance sector and strengthen its presence in high-growth markets such as Singapore, Malaysia, Thailand, Hong Kong, and South Africa.
Candela, currently part of Azentio, reported $8 million in non-GAAP revenue for 2024 and boasts a team of over 100 employees primarily situated in Bangalore, India. The acquisition, structured as a cash transaction, is slated for completion in the second quarter of 2025, after fulfilling customary closing conditions. It is projected that the acquisition will enhance Sapiens' profitability beginning in the fourth quarter of 2025.
The strategic acquisition is expected to leverage Candela's nearly 30 years of industry expertise to enhance the Sapiens Insurance Platform with advanced business process modeling and case management capabilities. This integration aims to offer standardized processes over external legacy solutions, thus improving operational efficiency and customer experience for insurers without necessitating complete system overhauls.
"We are thrilled to welcome Candela's team to the Sapiens family," said Roni Al-Dor, CEO and President of Sapiens. "This acquisition is a critical step in expanding our APAC presence and enhancing our life insurance platform to meet the digital transformation needs of our clients globally."
