Matrix IT Ltd. (TASE:MTRX) has acquired the controlling interest in US compliance and fraud prevention company Exzac Inc. for $6.75 million. It will pay up to an additional $2.5 million, subject to milestones. Exzac was acquired through the acquisition of 60% of Germany's AG 2000 Holdings LLC, and has an option to acquire full control of the company.
Exzac is AG 2000's sole asset. The Jersey City-based company provides risk management services, including Anti Money-Laundering Management, Fraud Management, and Regulatory Compliance Management services for financial institutions. Exzac's revenue rose to $11.2 million revenue January-November 2011 from $10.2 million in 2010 as a whole. It has 80 employees.
Matrix IT said that the acquisition was part of its strategy to expand its international operations, especially in the US, and to expand the services it can offer clients in Israel and abroad.
Matrix IT financed the acquisition from its own sources.
Matrix IT's share price rose 1.1% in morning trading to NIS 19.70, giving a market cap of NIS 1.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2012
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