Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) has bought out the management of South Africa's Magix Integration Ltd. to acquire full control of the company. Magic bought out the 25% stake of Magix held by its management at a $2.8 million company value. The sellers could receive an additional $400,000 subject to Magix meeting performance targets in 2011.
Magic software develops of mobile and cloud-enabled application and business integration. Its most recent acquisition was the Appbuilder business of BluePhoenix Solutions Ltd. (Nasdaq: BPHX; TASE: BPHX) for $17 million last year.
Magic VP M&A Amit Birk said, "This move reasserts our strong faith in the future growth of the South African market."
Magic Software's share price rose 2.5% by mid-afternoon on the TASE to NIS 20.90, after falling 0.9% on Nasdaq yesterday to $5.25, giving a market cap of $168 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012