Coforge announces divestment of AdvantageGo to Sapiens

Global digital services provider Coforge Ltd on Wednesday announced the divestment of its subsidiary, Coforge Advantage Go Ltd, as part of a strategic review and corporate restructuring. Coforge UK Ltd, a wholly-owned subsidiary of the company, has agreed to a share purchase agreement with Sapiens UK Ltd, marking a significant move in Coforge's operational focus.

This transaction involves the entire shareholding in Coforge Advantage Go Limited being transferred to Sapiens UK Ltd for a base consideration of GBP 43,000,000. Completion of the transaction is anticipated within the next 4 to 6 weeks, pending fulfilment of certain obligations.

AdvantageGo is a prominent product provider in the commercial and specialty sector, boasting a strong market position within the Lloyd’s Syndicate Market. This divestment aims to resolve potential channel conflicts and enhance Coforge's growth trajectory in the insurance services sector.

Sudhir Singh, CEO and Executive Director of Coforge, stated, "AdvantageGo is a stellar product business in a predominantly IT Services organization. Divestment of AdvantageGo would resolve the channel conflict with some of our strategic partners in the P&C space and enable us to stay focused on driving very strong growth in the Coforge Insurance Services business. As a global leader in Insurance SaaS-based software, Sapiens is a great strategic fit for the AdvantageGo business. This transaction will also strengthen our go-to-market partnership with Sapiens and help further accelerate the growth of both organisations within the Insurance industry."

Ian Summers, Global Business Leader of AdvantageGo, expressed gratitude for the opportunity to grow the business under Coforge’s guidance. He commented, "I am immensely thankful for the opportunity to build AdvantageGo business under Coforge ownership. Joining Sapiens means becoming part of a leading global product organisation that will amplify our capabilities and enhance our solutions, creating greater opportunities for our clients and team."

The integration of AdvantageGo's products into the Sapiens Insurance Platform is expected to enhance service offerings, aiming to provide seamless and powerful solutions for the European and North American markets. "We look forward to integrating our products into the Sapiens Insurance Platform to deliver a seamless and powerful offering for the European and North American markets. We are committed to ensuring a smooth transition and continued service excellence for all our customers," Summers added.

The collaboration is expected to yield significant growth and opportunity for both entities.