Mergers make Matrix one of Israel’s biggest employers

After recent mergers, an Israeli IT services and consulting company Matrix (TSX:MTRX) has become one of the largest employers in Israel with 12,500 employees, including 10,682 in Israel at the end of the third quarter. This is a larger number of employees than Intel Israel, which for many years until the recent layoffs was the largest private company in Israel. only Elbit Systems Limited (Nasdaq: ESLT; level:ESLT) with 14,000 employees and Shufersal Company Limited (level:Sai) You have more employees. 52% of Matrix employees are women.

Matrix, under CEO Moti Gutmann and controlled by Formula Systems (TASE: FORTY), recently announced three acquisitions: US company Alacer, which provides IT consulting services to major US companies including Citi and Toyota, for several million dollars; Israeli company Ortec Marketing & Supply, which manufactures and markets equipment for the electronics and chip industry, was acquired in early December; Last week, Haifa-based Gav Systems and Gav Express, which provide a range of IT solutions including technology development, consulting and outsourcing, for NIS 45 million. The recent acquisition adds 850 employees to Matrix’s rapidly expanding workforce.

For many years the IT services sector in Israel has been one of the most active sectors in terms of mergers and acquisitions. The largest companies in this sector including Matrix, Hilan (TASE: HLAN), One Software Technologies (TASE: ONE) and Malam-Team (TASE: MLTM) have made several acquisitions, especially of smaller companies in this space, bringing more and more more Of business and employees.

But in recent years, there has been a lull in the number of mergers and acquisitions, but some recent moves may indicate a renewed appetite among the giants of this field. At this point, most of the activity is coming from Matrix, the largest company in this sector in Israel, although earlier this month One Technologies acquired Bezeq Online from Bezeq for NIS 50 million, and Hilan acquired Israeli and Bulgarian companies for 86 million shekels. .

At the start of the year, One had 7,052 employees, with an additional 2,400 added through the acquisition of Bezeq Online, Hilan has 5,360 employees, and Malam Team has 4,818 employees.

The IT market covers a wide range of areas, from computing infrastructures to enterprise software solutions, payroll management and human resources. The revenues of the four leading companies in the industry amounted to about NIS 12 billion in the period from January to September of this year, of which Matrix’s share was about 35%. The company announced a significant increase in revenues by 7.5%, while net profit since the beginning of the year jumped by 19% to reach 203 million shekels. Matrix currently trades with a market capitalization of over NIS 5.6 billion, after the company’s stock price jumped 31% over the past year. The return on the share price of Hilan, the second largest company in the industry (with a market value of NIS 5.3 billion), was 22% lower.

Shares of One Technologies and Malam Team have achieved much higher returns of 52% and 68% over the past year, respectively. The Tel Aviv 125 Index, which includes the four computing giants, rose 28% during this period.

Published by Globes, Israel Business News – en.globes.co.il – on December 19, 2024

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