- FINEOS (FCL) has stepped up its digital and machine learning capabilities with the now-completed acquisition of U.S.-based tech developer Spraoi
- A definitive agreement was signed earlier this month, under which the company paid $5.2 million for 100 per cent of Spraoi
- A further $8.5 million will also be paid over the next three years based on certain revenue targets
- Spraoi's capabilities will enhance FINEOS Engage and FINEOS Insight, and bolster machine learning across the broader FINEOS Platform
- FINEOS was down 1.33 per cent at the close of trading today to $3.70 per share
FINEOS (FCL) has stepped up its digital and machine learning capabilities with the now-completed acquisition of U.S.-based tech developer Spraoi.
A definitive agreement for the purchase was signed earlier this month, under which FINEOS said it would pay $5.2 million to DigIn Technologies in exchange for all of Spraoi's issued securities, as well as a further $8.5 million over the next three years based on certain revenue targets.
The deal was funded by existing cash reserves and the issuance of 700,000 share options to Spraoi's three founders and team of 23 employees.
With eight clients and revenues totalling around $7.6 million in 2020, the purchase was described by FINEOS as a strategic addition with immediate opportunities to leverage existing clients and products.
Most importantly, FINEOS said Spraoi's capabilities would enhance FINEOS Engage and FINEOS Insight with further smart-portal options, industry specific operational and analytical models, as well as machine learning capabilities across the broader FINEOS Platform.
"The North American employee benefits industry is undergoing tremendous change, which is continually accelerating due to the competitive and regulatory environment, as well as the constant advancement of technology capabilities," said FINEOS CEO Michael Kelly earlier this month.
"Spraoi is an innovative InsurTech in the Employee Benefits space whose leaders have a strong background in the Life, Accident and Health industry, as well as deep expertise in core systems and machine learning."
FINEOS was down 1.33 per cent at the close of trading today to $3.70 per share.