Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, with a growing presence in the financial services sector, announced today that it has entered into a definitive agreement for the acquisition of Maximum Processing, Inc., the software provider of the Stingray System, a property and casualty (P&C) insurance administration suite targeted towards the tier 4-5 U.S. market, as well as managing general agents (MGAs), third-party administrators (TPAs) and insurance brokers. The transaction is expected to close by the end of June 2016.
Maximum Processing is a privately-held company headquartered in Bradenton, Florida, with offices in Garner, North Carolina. The Stingray System is recognized throughout North America, with approximately 30 insurer customers, and has a growing install base of web-based, P&C processing systems in the U.S. market.
“Small carriers remain very active in core system replacement projects and Maximum Processing has had good momentum in this space,” said Karlyn Carnahan, research director, Celent. “This investment by Sapiens will bring additional expertise, resources and relationships to Maximum Processing, driving their product, service and sales momentum, and making an immediate impact in the North American property and casualty market.”
With this acquisition and the addition of the Stingray System to its portfolio of products, Sapiens gains a foothold in the North American P&C insurance market and an attractive offering for tier-4 and tier-5 insurance carriers, MGAs, TPAs and brokers. Stingray System was designed as a cost-effective, fully functional and highly configurable P&C insurance administration solution for the local U.S. market. Sapiens will continue to invest in and offer its Sapiens IDIT software suite to mid- and large-sized carriers.
“Our growth strategy continues to include a combination of organic growth and M&A activity,” said Roni Al-Dor, Sapiens' president and CEO. “The acquisition of Maximum Processing supports Sapiens’ commitment to strengthen our position and offerings in the North American P&C market and increase our overall market share in the region, while we continue expansion of our global presence, customer base and local delivery capabilities.”
Al-Dor added, “The Stingray System has earned an outstanding reputation and gained an impressive market share. Between the Stingray System and our existing IDIT solution, we have market-leading offerings for virtually any size P&C insurance provider.”
“As part of the Sapiens team, we will have a much broader and deeper reach into the property and casualty market in North America,” said Sean Pitcher, president of Maximum Processing. “Our immediate objective is to make the transition into the Sapiens organization both seamless and beneficial to our customers, employees and partners.”
Maximum Processing's 2015 full-year annual revenue was approximately $6 million. Management expects this transaction to be accretive to earnings in 2017 and beyond.