Leading Israeli IT Group listed on NASDAQ joins the Asseco Group

On 3 September 2010 Asseco Poland SA concluded two agreements to purchase shares in Formula Systems seated in Or Yehuda, Israel. It is the largest acquisition in Asseco Group’s history. Ultimately, Asseco Poland will hold 6,823,602 shares in Formula Systems representing 50.19% of the share capital and 51.18% of votes at the General Meeting of Shareholders of Formula Systems. The total transaction cost will not exceed USD 145.3 million.

The first agreement was signed with Emblaze Ltd., an IT focused investment company registered in Ra’anana, Israel. Asseco Poland concluded the agreement for acquisition of 6,687,642 shares representing 49.19% of the share capital and 50.66% of votes at the General Meeting of Shareholders of Formula Systems. The transaction will be finalized once the General Meeting of Shareholders of Emblaze approves the sale of the shares, which is expected to take place not later than 30 November. The second agreement was concluded with a private individual, a member Formula Systems management board. This is an option agreement under which the said person is entitled to sell 135,960 shares in Formula Systems. The shares being subject to the option represent 1% of the share capital and 1,03% of votes at the General Meeting of Shareholders of Formula Systems.

Shares of Formula Systems are listed on Tel-Aviv Stock Exchange (TASE) as well as on NASDAQ Global Markets. Getting a majority in Formula Systems, a holding company established in 1985, Asseco Poland is a co-owner of shares in three IT companies now: Matrix IT, Magic Software Enterprises, and Sapiens International Corporation. Companies of the Formula Systems group operate in Israel, USA, Canada, Japan, Great Britain, Germany, Netherlands, France, Hungary, and India.

“The project of Asseco won my recognition right from the beginning. I can see huge development potential in our partnership. Asseco provides access to new markets, especially in Central and Eastern Europe, where we have had hardly any operations so far. I am glad that Formula will have real impact on the shape and direction of development in the group. I hope that together we will manage to acquire further valuable IT companies to strengthen our position in the markets where we already operate as well as to open new opportunities for the business,” says Guy Bernstein, CEO at Formula Systems.

“I am extremely satisfied that one of the largest IT companies in Israel has joined the Asseco Group. We have gained partners in one of the most innovative countries in the world. We will use this opportunity to enter new markets and benefit from access to sophisticated know-how and highly innovative products and technologies. We believe that together with Formula we will gain momentum to create a truly global company. I am convinced our cooperation will bring measurable benefits to Asseco as well as to all the companies operating within the Formula Systems holding,” adds Adam Goral, President and CEO at Asseco Poland.

The most significant Formula Systems’ assets include shares in three IT companies:

Matrix IT Ltd. (50.1%) – listed on TASE. One of the leading integration and information technology services companies in Israel. Matrix employs approximately 4,200 software, hardware, integration and training personnel, which provide IT services to more than 500 customers in the Israeli market. Matrix is active in four principal areas: software solutions and services, software distribution, infrastructure solutions and hardware products, and training and assimilation. The company’s solutions are provided to various sectors of economy, including banking and finance, telecommunication, public administration, healthcare, and enterprises. The revenues from sales generated by the company were USD 368.5 million in 2009.

Magic Software Enterprises Ltd. (58.1%) – listed on TASE and NASDAQ Global Markets. It focuses on modern technologies as cloud computing. It develops, sells and supports application platforms and business and process integration solutions for hundred of important customers from many sectors for more than 25 years. It has about 400 people and in 2009 generated USD 20.3 million of revenues.

Sapiens International Corporation NV (71.6%) – listed on TASE and NASDAQ Global Markets, too. It is a global provider of software solutions for the insurance industry. It provides the business solutions for global players as Aegon, AXA, GE Life, etc. In 2009, the company generated USD 45.7 million in revenues.

Source: Asseco

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