Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) is expanding its presence in the mobile world, and is buying a 70% stake in an Israeli company specializing in software professional services for mainframes and complex large-scale environments. The completion of the acquisition is subject to compliance with the preconditions as set forth in the purchase agreement, and includes an option to increase Magic’s holding to 100%. No details were disclosed about the name of the company or the amount of the purchase.
The operation being acquired is profitable, and currently employs 60 mainframe experts, and serves top-tier clients, including leading financial institutions, large enterprises, and government organizations.
By extending its software services capabilities, this acquisition delivers strong synergies with Magic's AppBuilder software solution, which provides a comprehensive application development infrastructure for large-scale and complex environments, serving similar organizations around the world.
“We're excited about the synergies and margins provided by this acquisition as large enterprises and institutions need specialized solutions and skills to leverage and maintain their mission-critical systems," said Magic VP M&A Amit Birk. "We continue to implement our growth strategy by boosting organic growth along with complementary M&A activities and are confident that this will be a great addition to our successful track record of acquisitions."
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2015
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