Global Cloud-based Insurance Software Firm Applied Systems Acquires Planck for $300 Million

Applied Systems announced on Tuesday its acquisition of Israeli startup Planck, which specializes in artificial intelligence (AI) solutions for the insurance industry. While the companies did not disclose the deal’s value, Calcalist estimates it at around $300 million.

Planck, which has raised $73 million from prominent venture capital funds including Team8, 3L Capital, Greenfield Partners, Viola Fintech, Arbor Ventures, Vintage Investment Partners, and Eight Roads, employs 65 people. These employees will form the foundation of Applied Systems’ AI Development Center in Israel, marking the company’s first acquisition in the country.

Planck provides an AI-based platform that gathers public business data for numerous clients in the commercial insurance sector globally. The platform delivers data-driven insights to help clients assess risk levels, streamline underwriting processes, and optimize premiums while reducing costs. Insurance companies and agencies utilize Planck’s platform for underwriting, contract renewals, instant quotes, and developing more precise actuarial models.

Applied Systems, a global leader in cloud-based insurance software, employs around 2,700 people worldwide and is privately held by equity firm Hellman & Friedman. The company serves thousands of customers across the U.S., Canada, the UK, and Ireland, maintaining a significant share of the global market. Over the past year and a half, Applied Systems has intensified its focus on AI solutions to enhance efficiency and boost data utilization in the insurance industry. This acquisition will enable the company to further leverage AI to create smart automation throughout the insurance lifecycle.

Planck was founded in 2016 by Elad Tsur (CEO), Amir Cohen (CTO), and David Schapiro (Co-founder), who bring extensive experience in insurtech and AI. Before founding Planck, Tsur established BlueTail, which was acquired by Salesforce and became a crucial component of Salesforce’s initial operations in Israel. Tsur and Cohen also managed the architecture of Salesforce’s AI platform, later rebranded as Salesforce Einstein. Schapiro is a well-known figure in the insurance industry, having served for a decade as CEO of Earnix, transforming it into a leading analytical insurtech startup.