Thursday October 31, 5:40 am ET

Formula invests $10 mln in Sapiens

TEL AVIV, Oct 31 (Reuters) - Israel's Sapiens International Corp said on Thursday that software holding company Formula Systems has exercised its option to invest an additional $10 million in the company.

In March 2001 Formula and Yarnfield International invested $15 million and received an option to invest an additional $15 million in return for convertible preferred shares at a conversion price of $1.14 a share.

Formula proposed to accelerate and exercise its option to invest an additional $10 million in exchange for a discounted conversion price of 83 cents a share.

Formula will have the option to invest the remaining $5 million at the same terms of the current investment.

"The additional invested capital and the complete conversion to common shares will materially improve our balance sheet structure, both in terms of cash assets as well as net equity," Sapiens president and chief executive Itzick Sharir said in a statement.

Sapiens provides information technology solutions that modernise business processes and enable insurance firms and other companies to adapt to change.

Its shares closed down 6.7 percent at 70 cents on Nasdaq on Wednesday.