Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Sapiens International Corporation (NASDAQ:SPNS) stock soared as much as 23% in premarket trading on Monday following a report that its parent company is in advanced talks to sell control of the software firm.
According to Israeli news website Calcalist, Formula Systems is negotiating with U.S. investment funds to sell its controlling stake in Sapiens at a valuation of approximately $2 billion. The report did not provide specific details about the potential buyers or the timeline for completing the transaction.
Sapiens, which provides software solutions for the insurance industry, has seen its shares respond strongly to the news of a possible ownership change. Formula Systems currently maintains a controlling interest in the company.
The reported discussions come amid ongoing consolidation in the enterprise software sector, where private equity firms and strategic investors have been actively pursuing acquisition targets. If completed at the reported valuation, the deal would represent a significant premium to Sapiens’ previous market capitalization.
Neither Sapiens nor Formula Systems has officially confirmed the report at the time of writing.
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