SAP AG (SAP - Free Report) recently announced its intention to acquire Camilion – a software company that helps insurers gain enterprise-wide alertness with their products and underwriting – to expand its insurance capabilities. The financial terms of the deal were not disclosed.
The strategic decision to acquire Camilion was taken to provide a comprehensive solution for the ever changing and demanding customer needs. Insurers, in the present day, are looking to update their core systems to increase the quality of their business and deliver new products to the market more promptly. But for this, insurers need software tools that provide direct analysis and simulation across huge volumes of data while protecting the value of past IT investments.
Therefore, with the acquisition of Camilion, SAP will be able to meet most of the needs of insurers who face challenging business environment and need to make significant product and strategy changes promptly, but at low risk. With Camilion on board, SAP will add core expertise and trusted relationships in the new age of insurance applications which are well recognized by customers and analysts, globally.
The acquisition will expand the SAP solution portfolio in the insurance sector, thereby providing insurers with effective software tools to update the management and creation of new products. In addition, the acquisition will also provide the insurance brokers and underwriters with simple, modern tools that speed up transactions; thereby, enabling them to grow their business in a cost effective manner.
Post this acquisition, SAP jointly with Camilion, intends to offer an integrated, uninterrupted insurance offering called the SAP® Business All-in-One solution for Insurance. This application will comprise complete integrated capabilities from strategy through finance to operations powered by innovative in-memory and mobile technologies, available either in the cloud or on premise.
Although SAP currently has a Zacks Rank #3 (Hold), most of its competitors such as Advent Software Inc. , Symantec Corporation (SYMC - Free Report) and Synopsis Inc. (SNPS - Free Report) seem to be a good pick at the moment with a Zacks Rank #1 (Strong Buy).