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Infosys Approves Record $2 Billion Share Buyback

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Infosys, India’s second-largest IT services provider, said Thursday it has approved a share buyback of 180 billion rupees ($2.04 billion), the biggest in its history. The company set a buyback price of 1,800 rupees per share, with the repurchase to be carried out through the tender offer route.

This marks Infosys’ fifth buyback, following its last repurchase in 2022–2023.

Market analyst Gaurav Vasu, founder of UnearthInsight, noted that Indian IT firms remain investor-friendly and service-driven, but suggested they should also explore mergers & acquisitions and focus on developing AI and cloud products, similar to U.S. tech giants.

Following the announcement, Infosys’ U.S.-listed shares edged up 0.03% to $16.99, while its Mumbai-listed shares closed 1.5% lower at 1,509.7 rupees.

Starboard Takes 8.5% Stake in BILL Holdings, Plans Boardroom Challenge

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Activist investor Starboard Value disclosed on Thursday that it has built an 8.5% stake in BILL Holdings (BILL.N) and plans to nominate directors as part of a boardroom challenge to push for changes at the financial automation software company. The move was confirmed in a U.S. Securities and Exchange Commission filing, which followed a Reuters report earlier in the day.

BILL Holdings’ shares surged as much as 10% in after-hours trading after the news. The company, headquartered in San Jose and valued at nearly $5 billion, processes more than 1% of U.S. GDP through its platform but has seen its stock lose almost half its value since January. Shares have fallen 86% from their November 2021 peak, though the company has authorized a $300 million share repurchase program, acknowledging its stock is undervalued.

Starboard’s filing said it intends to nominate director candidates, and discussions with management and the board are ongoing. Four of BILL’s 12 directors are up for election at this year’s annual meeting, and sources said Starboard may put forward as many as four nominees before Saturday’s deadline. BILL stated that it values engagement with all shareholders and will consider Starboard’s candidates once officially nominated.

While BILL expects revenue to grow up to 15%, it currently trades at just three times revenue, making it one of the least expensive U.S. technology firms. Analysts say this, along with increasing M&A activity in the sector, could make it an attractive acquisition target. Rivals such as Melio, AvidXchange, and Esker have all recently been acquired by strategic buyers or private equity firms.

Starboard has a track record of pushing operational improvements and strategic changes. It has recently taken positions in Rogers (ROG.N) and Tripadvisor (TRIP.O), and has previously reached boardroom settlements at Autodesk (ADSK.O) and Kenvue (KVUE.N). BILL, in its latest 10-K filing, acknowledged the potential disruption activist investors could bring, warning that proxy contests could divert resources and impact business execution.

Advent International to Acquire Insurance Software Firm Sapiens for $2.5 Billion

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Israeli insurance software provider Sapiens International (SPNS.O) announced on Wednesday that it will be acquired by U.S. private equity firm Advent International for $2.5 billion in cash, as Advent continues its focus on the insurance technology sector amid growing adoption of AI-powered solutions.

DEAL DETAILS

  • Purchase Price: $43.50 per share in cash, representing a 47.5% premium over Sapiens’ last Nasdaq close of $29.50.

  • Ownership Structure: Sapiens will become privately held post-acquisition, while existing shareholder Formula Systems retains a minority stake.

  • Strategic Intent: Advent aims to accelerate Sapiens’ AI and SaaS-driven innovation, enhancing technology and customer-centric solutions for insurers.

INDUSTRY CONTEXT

  • Insurance companies are increasingly deploying AI-powered software to improve efficiency, reduce costs, and drive profitability.

  • Advent has actively pursued deals in the sector, including exclusive negotiations for Kereis, the leading housing protection insurance broker in France.

STATEMENTS FROM EXECUTIVES

  • Douglas Hallstrom, Advent Director: “Insurers are increasingly turning to technology to help unlock growth and profitability… We will work with Sapiens to accelerate investment into technology innovation, AI, and customer centricity.”

  • Guy Bernstein, CEO of Formula Systems: “Formula will continue to retain ownership in Sapiens and is excited to partner with Advent to accelerate the transition to AI and SaaS.”

RECENT DEAL ATTEMPTS

  • Earlier in August, Advent failed to acquire Spectris, a British scientific instruments maker, after it opted for a rival offer from KKR worth £4.8 billion ($6.48 billion).

CONCLUSION
The acquisition underscores the growing importance of AI and digital transformation in the insurance sector, while marking Advent International’s continued commitment to technology-driven investments in insurance software.