Press Office

Holon, Israel – February 15, 2017 – Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, with a growing presence in the financial services sector, announced today that it has entered into a definitive agreement (subject to customary closing conditions) to acquire privately held StoneRiver, Inc., for approximately $102 million in cash (subject to certain adjustments). StoneRiver delivers a wide range of solutions and services for the insurance industry in North America.Headquartered in Denver, Colorado, StoneRiver’s versatile product portfolio is comprised of a policy administration suite, rating, underwriting, illustrations, reinsurance, and finance & compliance solutions for all major insurance business lines, across both property and casualty (P&C) and life and annuities (L&A). StoneRiver’s rich set of solutions complements Sapiens’ existing offerings, and will allow Sapiens to accelerate its growth in the U.S. market and globally. StoneRiver currently services more than 200 U.S. insurance customers, and has a team of approximately 500 insurance professionals.

“Joining forces with StoneRiver significantly expands Sapiens’ presence and scale in the North American insurance industry, and specifically helps us further accelerate our growing market footprint in the U.S. P&C space,” said Roni Al-Dor, Sapiens president and CEO. “Moreover, the deal is closely aligned with our M&A growth strategy that is centered on three key factors: growing our customer base, expanding geographically and adding complementary solutions to our portfolio – all while we ensure our continued high quality of services and product delivery. StoneRiver is an acquisition that meets all of our criteria. In the past six years Sapiens completed and integrated successfully eight acquisitions”.

Al-Dor continued, “Sapiens is confident that with StoneRiver, we strengthen our position as a leading innovative global software solutions provider, offering end-to-end solutions to the global insurance industry. We look forward to welcoming the StoneRiver team and combining best practices and capabilities, which will create greater value for our mutual customers and shareholders.”

Donald Light, Director in Celent’s North America Property/Casualty Practice, commented, “The continuing wave of insurance technology M&A activity demonstrates how insurance companies value working with providers who offer a full suite of solutions. Sapiens’ acquisition of StoneRiver is a major step forward in its global growth. This acquisition broadens and deepens Sapiens’ ability to enable US insurers as they continue their digital and modernization journeys.”

The acquisition of StoneRiver expands Sapiens’ North American P&C portfolio with StreamSuite™, a state-of-the-art insurance suite targeting the higher tier carriers, complementing Sapiens’ Stingray solution that is targeting the lower tier in the sector. The company will also gain entry into the workers’ compensation sector, a new area for Sapiens. Combining Sapiens’ and StoneRiver’s reinsurance solutions is expected to create a comprehensive market offering and will allow Sapiens to better serve its customers.Sapiens L&A offering will be enhanced by StoneRiver’s stand-alone products in illustration (LifePortraits), eApp (Life Apply) and underwriting (Life Suite). The addition of these products to the Sapiens ALIS software suite, together with the company’s digital suite that includes Sapiens Intelligence and Sapiens Portal, will enable Sapiens to offer a comprehensive and even stronger portfolio of solutions to the life and annuities sector.

StoneRiver president and CEO Gary Anderson commented, “We are excited to join Sapiens, a leading software solution provider with a rich 30-plus years of history and proven experience delivering enterprise-scale technology globally. Like StoneRiver, Sapiens is focused on the insurance industry and delivering high value end-to-end solutions of core products and services. Sapiens’ scale, financial strength, industry relations and innovative technologies will be a great benefit to current StoneRiver customers and will open up new opportunities for our employees and partners. We look forward to working with Sapiens to achieve a seamless transition and to significantly expand Sapiens’ North American presence.”

StoneRiver estimated Non-GAAP full year 2016 revenues are $80 million and the company is profitable. Sapiens’ management expects this transaction to be accretive to earnings starting with the third quarter of 2017. The transaction is expected to be completed by the end of the first quarter of 2017. Upon completion, StoneRiver will become wholly owned by Sapiens.Sapiens will provide full-year 2017 guidance for the combined organizations when reporting 2016 annual results at the end of February 2017.

Asseco has years of experience in creating solutions that meet the highest security standards for central and local authorities. Our approach in building a modern and safe state is a thoroughly comprehensive one, covering all angles; as opposed to doing it in a piecemeal way. During Computerworld’s State 2.0 conference we will share our knowledge and expertise in this area. Our experts will include:Andrzej Dopierała – CEO of Asseco Data Systems – who will discuss the vision of building a secure e-PolandKrzysztof Groyecki – VP Asseco Poland – who will take part in the debate on health careTomasz Bendlewski – Director of the Energy and Gas Division at Asseco Poland – who will participate in the debate on energyZdzislaw Wiater – Director of the Military Section at Asseco Poland – who will act as moderator for the ‘National Defense 2.0’ debate

The system is set to support finance management of the city of Łódź. ERP, which stands for Enterprise Resource Planning, will provide a smooth flow of information between the central unit – the City Hall – and its 40 subordinate municipal units. The system will be implemented in all finance and property areas, including management of the city budget, its contracts, invoices, VAT payments, as well as management of tax proceeds and other charges paid by residents.

Jarosław Jastrzębski, Vice President of Asseco Data Systems SA, responsible for the Local Administration Division: Local and regional authorities perform a wide variety of tasks, which are often carried out by separate units within a city. A single, uniform system will provide the city of Łódź officials with full and complete information, necessary to run their city efficiently. The ERP system in Łódź is the first project of its kind, implemented by the local authorities, whereby a complete and integrated IT system is replaced by a more modern system. We believe other cities will follow in Łódź’s footsteps and this will become our flagship project.

The agreement provides for the implementation of a tailor-made ERP software addressing the needs of the city of Łódź, data migration from the previously used programs, and integration of the new solution with some of the applications currently in operation in the City Hall. Asseco Group will also train system’s future users.This project will be implemented by a consortium of three Asseco Group members: Asseco Data Systems (Consortium Leader), Asseco Poland, and DahliaMatic. Implementation is set to be executed within 4 years.Asseco Data Systems
Founded in 2015, Asseco Data Systems SA combines competences of 6 other Asseco Group members – ADH Soft Sp. z o.o., CK Zeto SA, Combidata Sp. z o.o., Zeto Bydgoszcz SA, Unizeto Technologies SA, and Otago Sp. z o.o. Each of these companies has had decades of experience on the Polish market. Asseco Data Systems SA creates and develops software (including software for the leasing sector and the local authorities), provides IT infrastructure, trainings, and human capital management systems. It also specializes in security and trust services, as well as mass communication services. Asseco Data Systems SA cooperates with business entities and public administration units.

Representatives from the world of politics and business were all present – including Deputy Prime Minister Mateusz Morawiecki, CEO of PKO BP Zbigniew Jagiełło, and Zbigniew Solorz-Żak, who owns the Polsat TV station and the Plus mobile network.

The system operates in several cooperative banks, which all use a common integrated solution for association, called SGB24. The Rzeszów-based company developed Asseco CBP based on its many years of experience and taking into account users’ individual preferences and needs, in particular those related to e-banking.

Andrzej Nowakowski, Director of the Cooperative Banks Division at Asseco Poland: It’s an innovative and responsive system. This means that no matter what device a bank customer uses in order to interact with it, they will have the same sort of experience. It allows the bank to contact its customers directly and present an offer that way. This solution is tailored for both retail customers and for the SME sector.

Asseco CBP employs the RWD (Responsive Web Design) technology. This simply means that no matter if you’re on your smartphone, tablet or laptop, you still use the system the same way. Bank customers can themselves decide what they need and what they want to use at a particular time thanks to the special embedded miniapp store.You can find additional information about the project on it.wnp.plhttp://cbp.asseco.com/home

Asseco Poland will be responsible for implementing two projects for the European Space Agency. As part of the first project, new tools used in the EGNOS (European Geostationary Navigation Overlay Service) system will be designed. Their tasks include analyzing the data required for correct calculation of the necessary adjustments to satellite navigation systems used in international aviation and maritime transport. Asseco Poland will also be responsible for the extension of the scope of data used in the system – it is now to include data from the European satellite navigation system called Galileo, launched in the second half of December 2016.The second project, called SPEED Scenario Manager (S-SM), makes it possible to perform simulations and collect data on the work of satellites – regarding their position or signal strength and its fade-out periods. Asseco Poland will be responsible for the tool cooperating with the EGNOS system, which manages the specific simulation scenarios; and also for improving the overall system performance and ensuring proper operation of tools after the project is completed.

Zdzisław Wiater, Deputy Director of the Public Administration Division at Asseco Poland: Your typical airline passenger isn’t concerned with the systems that ensure he or she gets to their destination safely and on time. The solutions developed by Asseco Poland for ESA are responsible for a smooth trip. We also carry out tasks aimed at improving the efficiency of tools already used by ESA.

The European Space Agency is an intergovernmental agency with responsibilities spanning the implementation of plans of its member states in the area of research and space exploration, as well as learning about the Earth and, more generally, the Solar System. As part of its mission it also provides citizens of Europe and the rest of the world with the benefits from investments in the space sector. Poland officially joined the European Space Agency in November 2012.

Zdzisław Wiater: These projects are simply a continuation of tasks already carried out by Asseco for the European Space Agency. The space sector will, in the near future, become one of the fastest growing in the world. It is therefore very important to work on such projects, in order to gain knowledge and experience required to carry out the more complex tasks that will come later, and thus establish Poland’s presence within the space sector.

This contract is the continuation of a cooperation dating back to 2014. The first set of data analyzers for EGNOS system collection purposes (for GPS and GLONASS), as well as an application generating visualizations of analytical results, were both developed for ESA. Migration of spacecraft simulators to a new platform, based on the RAP (Remote Application Platform) technology, was also executed by Asseco Poland.

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The view expressed herein can in no way be taken to reflect the official opinion of the European Space Agancy.