Insurance software giant Applied Systems is acquiring Israeli startup Planck, which is developing an AI-based platform for collecting data and public business information for commercial insurance companies. The companies refused to disclose the value of the deal, but Calcalist estimates it at about $300 million. Since its founding in 2016, Planck has raised $73 million from a number of leading venture capital funds - Team8, 3L Capital, Greenfield Partners, Viola Fintech, Arbor Ventures, Vintage and Eight Roads.
Planck employs 65 employees who will be absorbed by the purchasing company that will establish an AI Development Center in Israel. Applied Systems is a private company that employs about 2,700 people and is held by the private equity fund Hellman & Friedman.
Planck uses an AI-based platform to provide customers with data-based insights that help them assess risk levels, promote underwriting processes and increase premiums while reducing expenses. Insurance companies and agencies use its platform for underwriting, contract renewal, instant quotes and building more accurate actuarial models.
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From right, Amir Cohen, Elad Tsur and David Schapiro, founders of Planck
(Photo: Courtesy of Planck)
Applied Systems is the world's largest insurance software provider for cloud-based software, and its products include agency management and brokerage systems for organizations in the insurance industry. The company has thousands of customers across the U.S., Canada, the U.K. and Ireland, and it owns most of the global market in the field. This acquisition will allow it to expand opportunities to harness the value of AI to create intelligent automation throughout the insurance lifecycle.
Planck was founded in 2016 by Elad Tsur (CEO), Amir Cohen (CTO), and David Schapiro (Co-founder), who have extensive experience in the worlds of insurance, technology and, in particular, AI. Before founding Planck, Tsur founded the company Blue Tail, which was acquired by the giant Salesforce, and this formed a significant basis for the start of Salesforce's operations in Israel. Together with Cohen, he managed the architecture of the artificial intelligence platform at Salesforce, which was rebranded as Salesforce Einstein. He served as CEO for about a decade for Earnix, a start-up company in the analytical Insurtech field, and made it one of the leading players in the field.
"The negotiations were very short. It started last quarter and lasted only three months," Tsur told Calcalist. "I am happy that Applied Systems saw eye to eye with us on the need to keep all the company's employees. They will both benefit from the exit and join the new company. Planck employees who will enter Applied Systems will be responsible for the entire field of AI and products in the local and global market. It was personally important to me to introduce a new global factor to Israel, as I did a decade ago with Salesforce."
The purchase of Planck constitutes Applied Systems' first entry into Israel and, after the purchase, all of Planck's employees will be absorbed into Applied Systems and will form a local development center that will focus on the further development of Planck's artificial intelligence products, as well as building AI-based solutions for all Applied Systems products. Planck's founders will join the management team, while Tsur will serve as Chief AI Officer of Applied Systems and lead the entire field across all the company's products.