InsurTech provider Sapiens International Corporation has bought a German startup to boost its digital offering and to push further into Germany, Austria and Switzerland.
Sapiens has announced that it splashed out up to €28.4m to buy sum.cumo, a startup launched in 2010 that offers disruptive, digital, innovative and consumer-centric solutions mainly to the insurance sector.
The total consideration of the deal is up to €28.4m. Of that sum, €24.4m will be in cash and €4m in Sapiens shares.
In 2019, sum.cumo is expected to reach revenues of €15m and low single-digit profitability.
Bayerische Versicherungsgruppe, the insurance company, used to own the company and is now one of sum.cumo’s customers.
Through the acquisition, Sapiens aims to scale its footprint by offering Sapiens’ complete product and services portfolio in Germany, Austria and Switzerland, where sum.cumo already provide its offerings.
“The large and lucrative German market and overall European market are extremely attractive ones for insurance software solution providers,” said Craig Beattie, senior analyst in Celent’s insurance practice. “This acquisition shows Sapiens’ commitment to enlarging its presence in the region and expanding the Sapiens DigitalSuite, to better service customers who wish to follow the insurance e-commerce strategy.”
Roni Al-Dor, president and CEO of Sapiens, commented, “We are a strategic buyer that acquires companies that fit our mission, vision and culture. sum.cumo met our parameters as one of the most innovative insurtech companies in the region. Penetration into the DACH region has been part of Sapiens’ long-term growth strategy and we have started to gain traction in this region with Sapiens products. With sum.cumo’s local and talented team and customers, we should significantly enhance our presence there.”=
The deal is subject to regulatory approval and is expected by Sapiens and sum.cumo to be completed by the mid-February this year.
In late 2019, Sapiens made the news when the business signed a partnership with fraud-detection company FRISS. With that deal, Sapiens hoped to help its customers better mitigate risk and reduce the risk of falling victim to fraud.
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