Magic Software Enterprises Ltd. announced the signing of a Memorandum of Understanding (MOU) with Matrix I.T. (TASE: MTRX) regarding a proposed merger. This transaction is anticipated to be a significant milestone, combining the strengths of both companies to create a more diversified and resilient global IT service provider. The merger is expected to enhance capabilities to serve customers worldwide and drive innovation.
The combined entity is projected to generate over $2 billion in annual revenues and employ more than 15,000 professionals across approximately 50 countries. Its aggregate market value is expected to be around $2.1 billion (approximately 7.7 billion ILS), positioning it among the largest publicly traded IT services companies in the U.S. and Europe. This scale is expected to provide a stronger competitive advantage.
Magic Software's CEO, Guy Bernstein, stated that the merger represents a transformative opportunity for both companies, aiming to create a stronger and more diversified entity. The company remains committed to a seamless integration process to ensure continued operational excellence and business continuity throughout the transition. Shareholder endorsement for the transaction is anticipated in the fourth quarter of 2025.
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