Sale of shares in Insseco to Sapiens International Corporation
Sapiens International Corporation (“Sapiens”) has signed an agreement to acquire from Asseco Poland S.A. 100 percent of shares in Insseco Ltd. (“Insseco”), a company specialized in the development of software and provision of services to the commercial insurance industry. Insseco was originally established by Asseco Poland in order to foster the integration of Asseco Group operations in the sector of commercial insurance. As a result of the sale of Insseco to Sapiens, it shall become a center of competence of Asseco Group responsible for the production and implementation of software solutions for commercial insurers. Acting as a subsidiary of Sapiens Group, Insseco will continue to strengthen its market position in Poland and will get involved in the implementation of Sapiens’ international projects.
The acquisition of Insseco by Sapiens is a consequence of the development strategy pursued by Asseco Group that assumes building a strong market position in individual sectors of the economy, including insurance, banking, utilities, and healthcare. Sapiens is a leading global provider of software solutions for the insurance industry, it is listed on NASDAQ and is a subsidiary of Asseco Group. The conducted transaction will enable Asseco Group to develop a commercial insurance product and competence center operating within the company of Sapiens. For Sapiens, which is a part of Asseco Group, this agreement is an opportunity to expand its operations into another market as well as to develop its business in the European insurance sector. By entering into the Polish market, and indirectly into Central Europe, Sapiens will gain access to further resources of highly qualified IT specialists, allowing to reduce its software production and development costs.
At present, the share capital of Insseco equals PLN 4.6 million. The total consideration for the acquisition of control and acquisition of 100 percent of shares in Insseco, transfer of property rights as well as selected projects shall amount to PLN 34.3 million. Asseco Poland shall be also entitled to receive additional consideration if revenues generated by Insseco during the course of 5 years are higher than estimated on the transaction date. The transaction is expected to be closed by early August 2015.
Today, Insseco employs 140 IT specialists and its business is focused on the provision of services and development of software solutions for the commercial insurance industry. The company provides support in this area to miscellaneous customers of Asseco Poland based both in Poland and abroad. From the beginning of its operations, Insseco has been engaged in close cooperation with Sapiens. Apart from projects carried out in Poland, Insseco’s specialists have been recently involved in the implementation of projects executed by Sapiens across Europe.