Matrix IT Ltd. (TASE:MTRX) has acquired 67% of Bulgarian company Unicoders Ltd. for $2 million. Matrix IT might also pay an additional sum, subject to Unicoders meeting certain performance targets over the next three years. Unicoders was founded by two Israelis: Avi Maggid and Amit Bohansky.
Matrix IT CEO Moti Gutman said that the company plans to undertake large-scale activity internationally, including acquisitions in the Far East in order to provide offshore software services for the US and turn the company into an global IT services firm.
Matrix IT currently operates two offshore services: the company’s Talpiot project, which currently employs 350 haredi (ultra-orthodox) women; and subsidiary Net Shore Ltd., which seeks partnerships with Eastern European software houses.
The takeover of Matrix IT’s parent company Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT) by Emblaze Ltd. (LSE: BLZ), controlled by vice chairman Eli Reifman, has apparently breathed new life into the company in order to create value as quickly as possible. In recent weeks, the company quickly reorganized for international activity, consolidating offshore activity under the Talpiot program and increasing its stake in Net Shore from 65% to 75%. It also established ties with Odin Investments (2005) Ltd., which owns another 18%.
Matrix IT planned for years to make acquisitions in Eastern Europe, but never mentioned them explicitly until now.
Published by Globes [online], Israel business news - www.globes.co.il - on April 12, 2007
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