Pension reform accounts for Migal Insurance’s interest.
The Bachar reform laws and the resulting revolution in the capital market are also having an effect on companies operating in sectors related to the financial sector. One such company is Hilan Tech (TASE: HLTC), which develops payroll management and human resources software for enterprises. The company, controlled by CEO Avi Baum and Ofer Hirshson, reported today to the Tel Aviv Stock Exchange that it was considering cooperation with Migdal Insurance (TASE: MGDL), with Migdal acquiring a stake in Hilan.
What does Migdal see in Hilan? As Israel’s leading payroll management company, Hilan’s databases include extensive information about the pay slips of many employees, from payroll operations interfaces. Hilan’s platform can easily be leveraged in pension clearing, too. Hilan has already announced its intention of entering the pension operation field. For an insurance company like Migdal, this is definitely another growth engine, given the changes taking place in the industry.
Hilan said that its negotiations with Migdal had not yet produced a deal. The company noted that there was no guarantee that negotiations would eventually produce a binding agreement. Hilan added that, among other things, it was considering cooperation with Migdal in its core business of salary and pension clearance and operation. Also being considered is the sale of activity to Migdal. Common to all these possibilities is the retention of control in Hilan by Baum and Hishson’s group.
Published by Globes [online] - www.globes.co.il - on December 19, 2005