Sapiens International Corporation's Smart Acquisition of Candela to Strengthen Its APAC Presence

Sapiens Expands Horizons with Candela Acquisition

In a major strategic initiative, Sapiens International Corporation, a prominent global leader in intelligent insurance software solutions, has announced the acquisition of Candela, a Melbourne-based intelligent automation company. With its sights set on bolstering its presence in the Asia-Pacific (APAC) region, Sapiens aims to enhance its life product portfolio significantly through this transaction. The acquisition, expected to close in the second quarter of 2025, represents not only a growth opportunity for Sapiens but also promises a host of innovative solutions for its global clientele.

Candela has earned its reputation as an industry frontrunner by providing a comprehensive end-to-end insurance automation platform which has proven beneficial to numerous blue-chip clients across Singapore, Malaysia, Thailand, Hong Kong, and South Africa. With a dedicated team of over 100 employees primarily located in Bangalore, India, Candela boasts extensive experience and insight into the dynamic insurance market in APAC. This acquisition aims to capitalize on Candela's innovative capabilities and align them with Sapiens' robust Insurance Platform, thus unlocking further growth potential and operational efficiency.

Roni Al-Dor, CEO and President of Sapiens, expressed his enthusiasm regarding the merger, welcoming the Candela team into their operational fold. He indicated that this acquisition is pivotal to Sapiens’ enduring strategy to cement its foothold in the APAC market while simultaneously enhancing its sophisticated life insurance platform. With the integration of Candela's advanced solutions, Sapiens anticipates improving the customer experience across the insurance lifecycle through consistent service delivery and updated technological infrastructure.

The primary objective of incorporating Candela's Business Process Modeling (BPM) and Case Management capabilities entails creating standardized procedures over external legacy solutions. This advancement is expected to streamline processes further, resulting in enhanced interactions for agents, administrators, and most importantly, customers.

In terms of financial details, the acquisition is structured as a cash transaction, with Sapiens agreeing to pay Candela an aggregate cash consideration of $22 million. In 2024, Candela's non-GAAP revenues totaled $8 million, and projections suggest that the acquisition will contribute positively to Sapiens’ profitability starting in the fourth quarter of 2025.

Candela's solutions are anticipated to be complementary to Sapiens’ existing offerings, particularly concerning its Insurance Platform and Policy Administration Systems for Life. The synergy between both entities’ offerings may prove transformative for Sapiens, especially as they delve deeper into the APAC landscape.

Amitabh Poddar, Business Head at Candela, expressed optimism regarding the transition, noting that joining Sapiens would unlock a wealth of resources and enhance value for existing clients. The integration of Candela’s intelligent automation solutions with Sapiens' industry-leading platform stands to amplify their capabilities further, benefiting customer experiences and operational efficiency substantially.