Sapiens International Corporation (NASDAQ:SPNS) saw its stock jump as much as 23% in premarket trading Monday after reports emerged that its parent company is in advanced talks to sell its controlling interest in the insurance software provider.
Israeli news outlet Calcalist reported that Formula Systems is negotiating with U.S.-based investment funds to offload its majority stake in Sapiens, with the discussions reportedly valuing the company at around $2 billion. The report did not identify the potential buyers or specify a timeline for finalizing any deal.
Sapiens, known for its technology solutions tailored to the insurance industry, quickly became a focal point for traders following the news. Formula Systems currently holds a controlling position in the firm.
The reported talks come amid a wave of consolidation in the enterprise software space, where both private equity investors and strategic acquirers have been hunting for deals. Should a sale go through at the suggested valuation, it would mark a substantial premium over Sapiens’ prior market capitalization.
As of publication, neither Sapiens nor Formula Systems had issued an official statement confirming the report.
Sapiens International Corporation stock price
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