Original article appeared in FinTech Global May 2021
SaaS-based provider for life, accident and health insurers FINEOS has completed the acquisition of US-based tech developer Spraoi for $5.2m to step up its digital and machine learning capabilities.
According to the agreement, a further $8.5m will also be paid over the next three years based on certain revenue targets.
With the buyout, Spraoi’s capabilities will enhance digital and data capabilities for FINEOS’ products FINEOS Engage and FINEOS Insight as well as bolster its machine learning capabilities, add digital smart-portal options and industry-specific operational and analytical models across the FINEOS Platform.
Furthermore, Spraoi’s framework will increase FINEOS’ digital service reach, reduce customer service friction and provide much greater insight into the carrier/customer dynamic across the entire customer lifecycle.
The transaction is subject to customary closing conditions. As FINEOS and Spraoi integrate the business over the coming months, the priority will be to continue to operate on a business as usual basis, FINEOS said in a statement.
Insurance company Spraoi specialises in helping clients leverage their data to optimise outcomes using the patent-pending Spraoi platform and engage customers throughout the lifecycle using their customer engagement infrastructure.
Commenting on the acquisition, FINEOS CEO Michael Kelly said, “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
“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. That combination makes Spraoi a natural addition to the FINEOS team as we continually improve the FINEOS Platform to meet the needs of our clients.”
Kelly added that the acquisition will help “making the FINEOS Platform the only purpose-built Employee Benefits platform, from quote to claim with advanced machine learning capabilities.”
Echoing a similar sentiment, Spraoi co-founder Karan Mishra said, “Spraoi’s technology offering and services have allowed our clients to successfully optimise outcomes and see measurable ROI. Our deep machine learning, data and customer experience capabilities coupled with the robust FINEOS Platform enables clients to have a one-of-a-kind, pre-integrated platform to get the most out of their technology investments.”