The software company Sapiens, which is traded on the NASDAQ and TASE exchanges (NASDAQ, TASE: SPNS), and is part of the Formula Systems group, reported that it has entered into a final agreement to acquire Delphi Technology, a provider of software solutions for the medical insurance field, for about $ 19.5 million in cash. The acquisition will allow Safins to expand its presence in the medical professional markets (MPL) / healthcare professional responsibility (HCPL), sometimes referred to as “medical malpractice”.
Delphi was founded in 1989 and its headquarters are located in Boston. The company employs over a hundred employees and has about 40 insurance customers. The company offers core products for MPL, including policy management, claims management, financial management and risk management.
Roni Al-Dor, President and CEO of Sapphire: “I am pleased to welcome the Delphi team to our ranks. The acquisition enables us to create added value for our customers, while increasing our market share in the US, which is a significant growth engine for Sapphire. The Delphi acquisition expands our presence in the MPL market and improves our chances in this key area. Its customers – combining Sapphire’s solutions, relationships and resources – will enhance our position as a leading U.S. solutions provider.
Sapphire will continue to support Delphi products and customers, who can now enjoy a range of complementary products and services. In addition, Sapphire will leverage Delphi’s expertise and knowledge to further enhance its core insurance suite of core solutions to provide a holistic, multi-line solution, including to the MPL market.
Delphi’s total revenue for 2019 amounted to approximately $ 15 million, along with an operating loss. Sapphire expects the acquisition to begin contributing to profit in early 2021.
Martina Conlon, VP of Research and Consulting, Novarica: “Consolidation in the industry has challenged MPL insurers to provide distinctive products and services to a wide range of healthcare providers, including large institutions and networks, individuals, small groups and more. Insurers need a strong technology partner to provide flexible digital offerings with the highest level of service options. The acquisition of Delphi gives Sapphire rich knowledge in the field of MPL and a customer base to advance its position in the US.
Sam Fang, Founder and CEO of Delphi Technology Ltd.: “Sapphire’s advanced technologies and modular services, coupled with Delphi’s market presence, extensive customer relationships and expertise in the field, will enable deeper penetration into the MPL market. Together, Delphi and Sapphire will create new opportunities “It is fascinating for employees and customers. We look forward to integrating seamlessly into Sapphire to serve the MPL market effectively.”
Last May, Sapphire published its results for the first quarter of 2020. Non-GAAP revenues increased by 17.9% to $ 90.5 million in the quarter, non-GAAP operating profit in the quarter increased by 24.4% to $ 14.6 million, and net income Attributed to the company’s shareholders (Non-GAAP) rose in the quarter by about 24.1% to about $ 10.4 million.