Sapiens acquires German-based sum.cumo

Insurance software company Sapiens has acquired German technology provider sum.cumo for up to €28.4 million.

Established in 2010, Sum.cumo services insurers in the DACH region (Germany, Switzerland and Austria), helping them to set up their business model and obtain a marketing edge. The company’s experts in consulting, user experience, marketing and technology enable the region’s insurers to launch successful e-commerce environments. The company has more than 150 technology and insurance experts and serves customers in Germany and Switzerland from offices in Hamburg, Düsseldorf and Zurich.

The acquisition will enable Sapiens to expand its footprint by offering Sapiens’ complete product and services portfolio in the DACH region, alongside sum.cumo’s offerings. Sapiens will continue to invest in and support sum.cumo’s offerings, and enhance Sapiens’ digital offerings worldwide via sum.cumo’s solutions and expertise.

The acquisition’s primary goal is expanding Sapiens’ presence in the DACH region. sum.cumo is expected to reach 2019 non-GAAP revenues of €15 million and low single-digit profitability. The total consideration is up to €28.4m (€24.4m in cash and €4m in Sapiens shares), including consideration for future retention and performance over the next four years. The acquisition will be accretive to profit starting from the second half of 2020. Consummation of the transaction is subject to certain regulatory approvals. The closing is expected for mid-Q1, 2020.