Asseco Poland finalizes its acquisition of Israel's Formula Systems

On 25 November, all the conditions set out in the agreement for acquisition of shares in Formula Systems have been satisfied and thereby Asseco Poland became a rightful owner of this information technology holding. The first condition was to obtain approval from the General Meeting of Shareholders of Emblaze (the investment fund from which Asseco acquired Formula Systems shares); whereas, additional conditions were related to the payment for those shares. Following the transaction Asseco Poland holds 6,823,602 shares in Formula Systems representing 50.19% of the share capital and 51.69% of votes at the General Meeting of Shareholders of Formula Systems. The total transaction cost did not exceed USD 145 million.

"The acquisition of Formula Systems is our first step in building a truly global position of Asseco. The Formula Systems Group provides us with access to unique know-how and the world's leading innovations. We are entering very promising markets. Today we open the door to global clients who have been out of our reach so far." – says Adam Góral, President and CEO of Asseco Poland.

Formula Systems is a holding company established in 1985. The holding owns shares in three IT companies: Matrix IT, Magic Software Enterprises, and Sapiens International Corporation. Shares of Formula Systems are listed on TASE (Tel Aviv Stock Exchange) as well as on NASDAQ Global Markets. Companies of the Formula Systems group operate in Israel, USA, Canada, Japan, United Kingdom, Germany, Netherlands, France, Hungary, and India. Net profit achieved by Formula Systems after tree quarters of 2010 USD 13.5 million, whereas revenues from sales generated by the company were USD 396.4 million.

Matrix IT Ltd – 50.1% – 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. Net profit achieved by Matrix IT for tree quarters 2010 reached USD 18 million, revenues from sales generated by the company were USD 304.5 million. The company is listed on TASE.

Magic Software Enterprises Ltd – 58.1% – develops, markets, sells and supports application platforms and business and process integration solutions. In addition to technology, Magic Software provides its customers with maintenance and technical support, as well as professional services and training. Magic Software is known for its code-free approach, allowing users to focus on business logic rather than technological requirements. This approach forms the driving principle of both the uniPaaS application platform (the next generation of eDeveloper) and the iBOLT business and process integration suite. After tree quarters 2010 Magic generated USD 63.6 million of revenues, while its net profit amounted to USD 6.3 million. Magic is listed on TASE and NASDAQ Global Markets.

Sapiens International Corporation NV – 71.6% – global provider of software solutions for the insurance industry. Sapiens' eMerge™ is a rules-based model-driven architecture, that is used to develop most of Sapiens' software products. It enables the creation of mission critical core enterprise applications with little or no coding using agile methodologies. Sapiens' technology allows customers to achieve legacy modernization and enterprise application integration. Sapiens has also formulated Sapiens INSIGHT™, a suite of modular business software solutions that helps insurance carriers adapt to the dynamic insurance marketplace. After tree quarters 2010 Sapiens generated USD 37,6 million in revenues, while its net profit amounted to USD 4.4 million. This company is listed on TASE and NASDAQ Global Markets.