Matrix acquires 60% of the American EXZAC Company for $6.75 million
EXZAC is in the field of risk management for financial institutions that deal with commerce and it specializes in the area of enterprise fraud management.
Matrix, the leading IT services company in Israel, had announced today that it is acquiring 60% of the EXZAC Company for $6.75 million. The purchase also determined mechanisms for additional revenue based on the company’s performance in the future, which won’t extend over $2.5 million. In addition, the company and sellers have mutual options to sell the remaining stocks of the sellers in the acquired company to Matrix.
EXZAC is an American company that is a leader in risk management for financial institutions that deal with commerce, and it provides application services in three main operation lines: fraud management and prevention, anti money laundering and solutions for withstanding the regulatory demands in these areas. Among its customers are major financial groups all over the world, including: Deutsche Bank, City Bank, CFTC (US Commodity Futures Trading Commission), HSBC, Wells Fargo, Bank of Tokyo, Barclays Capital and many more.
EXZAC was established by two Israeli partners: Guy Avtalion, who was the former chief architect and director of the Compliance product line at Actimize and Alon Even-Chen, who was one of the first employees of Actimize, where he was the chief project manager of application who faced key customers.
EXZAC is growing at a rapid pace and had recently opened offices in Hong Kong for the Asian-Pacific market (APAC). The company now employs 80 workers, most of whom are content specialists and technological experts. Among its employees are many Israelis who are carefully selected from prestigious military projects. The company applies and assimilates a variety of leading software products, while maintaining a neutral approach and selection of solutions that are best suited to the customer’s needs.
Moti Guttman, Matrix CEO: “The acquisition of EXZAC is a pivotal point for Matrix. We have determined to be exposed to the American market through the purchase of a successful, self-made company that matches the same content worlds in which Matrix specializes. EXZAC fits this definition completely. Guy and Alon, the founders of the company and its managers in the years to come, have been smart in creating a unique value and presenting an impressive growth with the leading banks in America and worldwide, in areas of expertise that are both desired and critical to their activity – regulatory compatibility, fraud prevention and anti money laundering. The impressive customer base, the company’s reputation, the managers’ reputation and the nature of its relationship with its customers bring Matrix a plethora of opportunities for future expansion with these customers in Matrix’s areas of expertise and varied offerings that appeal to enterprise organizations and especially to those in the financial sector.”
Guy Avtalion, EXZAC Co-CEO: the fraud management area of operation is considered a “hot” area and is characterized by a rapid growth rate in the USA, in Israel and worldwide. This is due in part to the multiple regulations in the area, in its complexity and constant changes. For these reasons, and based on the meticulous selection of employees and uncompromising professionalism, EXZAC has been constantly growing and expanding since its establishment. We are happy and proud to join the Matrix family. We have found in Matrix a variety of high-quality skills and specialties that suggest a synergy between the two companies and are relevant to the further expansion of EXZAC.”
Matrix, which employs 5100 IT professionals, is the leading IT company in the Israeli market. Matrix deals with performing the biggest integration projects, technologies development and implementation, software testing, software solutions and products, consultation services, offshore, outsourcing, training and assimilation, representing and distribution worldwide leading software products, leading hardware solutions and IT infrastructures. Among its customers are hundreds of leading Israeli groups and companies from the areas of industry, commerce, banking and finances, telecom, security, health and the public-government sector.
Matrix is traded at the Tel Aviv stock exchange in the Tel Aviv 100 index. The Matrix 2010 turnover was 1.53 billion NIS, and the net profit was 88.6 million NIS. Over 20 investment houses and banks chose the Matrix stock among the 5 recommended stocks of 2010. Matrix is also traded in the Tel Div index, which includes large companies that distribute dividends. The research companies rate Matrix in first place in the IT services field in Israel. STKI has been rating Matrix in first place for the past six years in a row and IDC has been rating Matrix in first place for the past four years in a row.