Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) has signed a new OEM and global distribution agreement with IBM Corp. (NYSE:IBM), under which Magic will integrate IBM’s DB2 Express database in the new version of its eDeveloper platform for composite applications and service oriented architecture (SOA). The three-year agreement was signed through Software Route, an IBM software distributor for the OEM community.
The companies did not disclose the size of the agreement, but market sources estimate it about $1 million.
IBM Israel country general manager Meir Nissensohn believes the agreement is a milestone for OEM agreements in Israel. “IBM is in the midst of a worldwide process aimed at encouraging partners and software solutions producers to adopt the DB2 for their software solutions. The result of this process is comprehensive OEM agreements, such as the one signed with Magic.”
The present agreement is not the first between Magic and IBM. Magic Software chairman and CEO David Assia said, “Magic Software's iBolt and eDeveloper have already earned IBM ServerProven status, and are included as part of the IBM System i5 Tools Innovation Program. The DB2 agreement is a further step in strengthening the relationship and the mutual understanding between IBM and Magic.”
Magic Software, which develops and markets software tools, has market cap of $45 million. The company recently announced that it was abandoning the customer relations management (CRM) sector as part of its strategy to focus on technology rather than applications. The company posted a net loss of $169,000 on $15.3 million revenue for the first quarter of 2006.
Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2006
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