NASDAQ-listed company acquires South Africa's Magix Integration
NASDAQ-listed Magic Software Enterprises (MSE) is establishing an African presence and has signed a purchase agreement with its South African distributor, Magix Integration.
The deal, effective 1 January, will see Magix Integration, which was bought out of the MGX group in 2003, split into two companies, Magix Integration and Magix Security.
MSE will initially acquire 51% of the new Magix Integration with an option to increase its holdings to 75% over the next year, depending on the company meeting specific profit and revenue goals. The Magix Integration business will promote, distribute and support MSE's products and will continue to focus on providing integration and bespoke software solutions and services for its clients.
Magix Security will incorporate the IT security and insider threat products and services Magix has introduced to the market over the past seven years. It will operate as an independent business with no changes to the existing structure.
"This investment is a strong vote of confidence in the business we have built over the last seven years and we are proud to be part of a NASDAQ-listed global technology company,” says Chris Hills, director and co-founder of Magix Integration. “It is also a vote of confidence in the growth prospects for our region and we intend to use this partnership to provide added value to our customers and partners through the exciting technology enhancements MSE brings to market. MSE has also stated its intent to make acquisitions in our region and we will be actively involved in finding suitable acquisition targets."
Guy Bernstein, acting CEO of MSE, says, “I am very pleased with the new acquisition, which expands our global operations to include South Africa, adding to our 13 existing offices worldwide. We expect this addition to positively contribute to our growth plans and further strengthen our presence in this region.”
Hills adds: “I believe this represents a great opportunity for all concerned. The strong base we have developed over the past seven years in the region will serve as a solid foundation for further growth in southern Africa.”