Israeli information technology provider markt opens a new chapter. Matrix IT Ltd. (based in Herzliya, Israel) has inked an initial agreement to buy rival Magic Software Enterprises Ltd. (based in Or Yehuda, Israel) in a mega-merger deal valued at $2.1 billion.
Israel’s tech ecosystem, known for its innovation and startup culture, is seeing increased consolidation among established firms. This merger aligns with trends where mature companies seek scale to compete globally, potentially inspiring similar moves among peers.
Donate For Independent and Free Pro-Israel News of “VonNaftali”
Make an independent pro Israel Blog (Non-Profit) possible. Donate 1.8 US-Dollar or more. COMPANIES WHICH ‘VONNAFTALI’ REPORTED ABOUT ARE ESPECIALLY INVITED TO MAKE A DONATION. Google Translate now integrated. You can access all articles in all the languages Google Translate offers for translation. Become MEMBER OF ‘VONNAFTALI BUSINESS CLUB’ to get more and exclusive news on Business&more> https://buymeacoffee.com/vonnaftali הוֹדִיעוּ בָעַמִּים, עֲלִילֹתָיו
$1.80
The press release draws a promising future based on facts: “The combined entity’s aggregate market value is expected to be $2.1 billion (approximately 7.7 billion ILS), a valuation that would place it among the largest publicly traded IT services companies in the U.S and in Europe.
Had the Companies already merged in 2024, the combined entity would have reported the following results in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board:
- Revenues: $2.1 billion.
- Gross profit: approximately $382 million (Gross margin: 18.6%).
- Operating income: approximately $183 million (Operating margin: 8.9%).
- Net income attributable to non-controlling interests: approximately $110.6 million (Net margin: 5.4%).
The combined entity is expected to operate in approximately 50 countries, serve around 6,000 active clients, and employ over 15,000 employees.”
The merger is not so much done with eyes on the Israeli market. This market is too small. The focus is on Europe and the USA. The merger will create a larger, more resilient IT services and software solutions provider, enhancing the Companies’ position with large enterprise clients.
Under the terms of the MOU, Magic shareholders will receive Matrix ordinary shares, holding approximately 31.1% of the combined entity, while pre-merger Matrix shareholders will retain 68.9%. This structure, backed by their common controlling shareholder, Formula Systems (holding 46.71% of Magic and 48.21% of Matrix), suggests a streamlined decision-making process.
The Matrix stock is traded on the Tel Aviv Stock Exchange (TASE), and its share is included in the TA-90 index, the prestigious index of the 90 companies with the highest Market CAP.
Learn more on VonNaftali Business Club with some deep insights > The Merger
Based on the press releases of the companies. Selected as relevant/shortened/adapted by VonNaftali. Pic AI-generated. Illustrative.