Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC)said today that it signed a purchase agreement to acquire its South African distributor, Magix Integration (Pty) Ltd.
With the acquisition, Magic is looking to expand its presence in South Africa. Magic bought Magix Integration's operations relating to Magic Software products. Magic Software will now control 51% of Magix Integration with an option to increase its holdings to 75%; for a total investment of up to $2.5 million to be paid over the next year.
Magix Integration specializes in the software integration and application development of Magic software platforms as well as the support of large-scale and complex systems in the public and financial sectors in South Africa. Magix Integration customers include South Africa's Department of Correctional Services, Department of Energy, and Financial Services Board.
Acting Magic CEO Guy Bernstein said, "I am very pleased with the new acquisition, which expands our global operations to include South Africa, adding to our 13 existing offices worldwide. We expect this addition to positively contribute to our growth plans and further strengthen our presence in this region."
Magic Software rose 4% to $6.80 on Nasdaq on Friday, giving a market cap of $218 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 13, 2010
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