Advent International agreed to acquire Israel-based insurance-software provider Sapiens International in an all-cash deal valuing the Nasdaq-listed company at about $2.5 billion. The private-equity firm will pay $43.50 a share, representing roughly a 47.5% premium to Sapiens’ last closing price, and intends to take the company private once the transaction completes. Advent will invest roughly $1.3 billion in equity, with the remainder of the purchase price financed through debt facilities. People familiar with the matter said Blackstone and Goldman Sachs Asset Management are arranging nearly $1 billion of private debt to back the buyout. Existing shareholder Formula Systems will roll over a minority stake. The transaction, unanimously approved by Sapiens’ board, is expected to close between the fourth quarter of 2025 and the first quarter of 2026, pending regulatory clearances and a vote by Sapiens shareholders. Advent said the acquisition will accelerate Sapiens’ expansion in artificial-intelligence-driven, software-as-a-service offerings for insurers. Sapiens reported second-quarter adjusted earnings of $0.34 per share on revenue of $141.6 million earlier on the day of the announcement. The company said it will forego its customary earnings call while the buyout process is under way.