Magic Software Enterprises (Nasdaq: MGIC; TASE:MGIC) has acquired Israeli start-up Enformia EIP Technology. Under the deal, Magic Software converted an earlier $750,000 investment in Enformia into ownership of the company’s intellectual property. Seven of Enformia’s 14 employees left the company as a result of the deal. Magic Software is a subsidiary of Formula Systems (Nasdaq: FORTY; TASE:FORT).
Magic Software cofounder and chairman David Assia founded Enformia as a spin-off of Walla! to develop enterprise information portals (EIP). Assia is one of Enformia’s main shareholders, alongside Formula, which acquired Walla’s holding.
In October 2002, Magic Software signed a partnership agreement with Enformia, under which it invested $1.5 million in the company for further development and support of its EIP software, receiving an option to increase its holding in the company to 51%. Magic Software also committed to integrating Enformia’s EIP in its iBolt Portal Server Integration family of products.
Founded in early 2000 as PortalPrise, Enformia had 30 employees at its peak. The company raised $7 million from Formula and a group of 17 private investors, including Assia. The company operated in France, the UK, and US, partly utilizing Magic Software’s sales network.
Published by Globes [online] - www.globes.co.il - on July 2, 2003