Matrix to buy Magic in major Israeli IT merger

By Investor Empires On Mar 11, 2025

Matrix IT (Tase: MTRX), the largest ITS company on Tel Aviv, signed a memorandum of understanding to buy magic software institutions (Tase: MGIC; NASDAQ MGIC). According to Tel Aviv's notification, Matrix will buy all stocks in Magic in a reversal triple merging, and Magic will become a listed company fully owned by Matrix. The consideration of magic shareholders in the form of Matrix shares will be, which gives them 31.125 % of the compact company while the Matrix 68.875 % will have. The maximum market for the integrated company will be about 7.7 billion NIS.

The two companies are part of Systems (Tase: Forty; Nasdaq: Forty). Jay Bernstein is the CEO of both formulas and magic, and the head of the matrix. Matrix CEO is Matte Gutman. Integration will require the approval of the shareholders. The shares of both companies are reserved by Israeli financial institutions, including Megdal, Vinix Holdings, Harrell in Mersouk, and Calle in Magic.

Matrix has a market value of 5.7 billion NIS. Formula Systems has 48.2 % of its shares, which is currently 2.76 billion New. The market value is 631 million dollars, after the share price on the Nasdaq Stock Exchange increased by approximately 8 % yesterday, after announcing the memorandum of understanding, compared to the market direction. Formula Systems has 46.7 % of Magic, a $ 290 million stake. Systems Formula Systems itself is a dual menu arrow, with a market height of $ 1.4 billion on the Nasdaq Stock Exchange. The share price increased by 5.33 % yesterday. The main contributor to Formula Systems is the Polish company ASSECO, with a 25.8 % contract. Besides the matrix and magic, Formula Systems also controls Sapiens (tase: spns; nasdaq: spns), which provides programs for the insurance industry.

Matrix and Magic are scheduled to issue the quarterly financial statements this week. There was no matrix, magic systems, or formula in response to the report.

It was published by Globes, Israel Business News – En.globes.co.il – on March 11, 2025.