Sapiens, a provider of business solutions to insurance and financial industry, has signed a non-binding term sheet for a merger with FIS Software and IDIT IDI Technologies, providers of software solutions for the insurance industry.
The terms of the non-binding term sheet reflect an aggregate value of approximately $75m for FIS Software and IDIT IDI Technologies, which shall be paid in cash, Sapiens shares and options to purchase Sapiens shares.
FIS Software offers a comprehensive enterprise level solution for Life, Pension and Annuity providers, with a global client base across the UK, Europe, Asia Pacific and North America.
IDIT IDI Technologies offers a full suite of a single end-to-end component-based integrated solution for the property and casualty market, with a focus on Europe, UK, Australia and Asia Pacific.
The proposed transaction is intended to create various synergies among the three companies and complementary offerings in the different territories where the companies operate.
Sapiens president and CEO Roni Al-Dor said subject to completion of the proposed transaction, the combined entity will strive to become a market major provider of innovative software solutions for the insurance industry worldwide.
The completion of the transaction is subject to various conditions, including completion of due diligence, execution of definitive agreements and obtaining applicable corporate and third party approvals.