Magic Software Enterprises (Nasdaq: MGIC), a provider of development technology and business solutions, today announced that its UK branch had signed a contract valued at more than $3.5 million with Menzies World Cargo (MWC) to deliver a comprehensive air cargo management and tracking system.
Magic said the solution, based on its eCargo handling and inventory control system, was designed to improve MWC's cargo management control and secured tracking and verification capabilities.
Already in use by Cargogate, the company that manages cargo handling for the Munich Airport, Magic eCargo will be implemented throughout MWC's organization with the assistance of NXGN, a Magic Solutions Partner that specializes in airfreight handling. The solution is expected to go live in the first quarter of 2002, although revenue from this project will start to be recognized as early as the fourth quarter of 2001.
MWC is the cargo handling and transport business arm of Menzies Aviation Group and a part of John Menzies plc. MWC is the largest independent handling company at London Heathrow. Over the past several years, the company has experienced substantial growth -- both organically and through acquisitions -- resulting in several different air cargo management systems being in place.
Magic said MWC needed to consolidate all its systems under a single new solution that would provide it with a clear competitive advantage.
Menzies World Cargo managing director Des Vertannes said, “We needed a system that would enable us to more effectively manage and control all aspects of our various air cargo operations, including the ability to absorb the additional tracking and administrative overhead we anticipate related to tightened security measures. Because of Magic eCargo's inherent flexibility and integration capabilities, we are able to protect our existing investments in complementary systems and get the new system up and running quickly."
Magic CEO Menachem Hasfari said, "We are very excited to have this opportunity to work with Menzies World Cargo, and to apply our world-class technology to solving its air cargo management and control issues. The new solution will serve as strong testament to our considerable experience in developing complex business solutions."
Magic shares closed on Tuesday at $1.53 on the Nasdaq Exchange. The technology holding company Formula Systems (Nasdaq: FORTY) owns 42% of Magic. Formula shares closed yesterday at $11.25 on the Nasdaq Market.
Published by Israel's Business Arena on 7 November, 2001