Magic Software: 35 Years on Nasdaq, Now Matrix IT

Nasdaq: MGIC · Founded 1983 in Or Yehuda · Merged into Matrix IT Ltd. in February 2026 · One of the longest-tenured Israeli enterprise-software companies on Nasdaq — 35 years listed — absorbed into its sister company inside the Formula Systems portfolio.

Magic Software Enterprises was the Or Yehuda-headquartered enterprise application-development and IT-services company that held a Nasdaq listing for 35 consecutive years before merging into Matrix IT in February 2026. Founded in 1983 by David Assia and Yaki Dunietz as a spin-off from Mashov Computers, Magic Software was one of the foundational Israeli technology companies on US exchanges — controlled by Formula Systems, led for its final chapter by Guy Bernstein (who also serves as CEO of Formula Systems), and operating across application development platforms, cloud and AI transformation services, and IT professional services in more than 50 countries.

At a Glance

Entity	Magic Software Enterprises Ltd. (now part of Matrix IT)
Ticker	Formerly Nasdaq: MGIC / TASE: MGIC (merged Feb 2026)
Founded	1983 (as Mashov Software Export, spin-off from Mashov Computers)
Founders	David Assia and Yaki Dunietz
Headquarters	Or Yehuda, Israel
CEO	Guy Bernstein (also CEO of Formula Systems)
Chairperson	Naamit Solomon
Parent	Formula Systems (1985) Ltd. (~53% control); ultimate parent Asseco Poland S.A.
Merger	Merged into Matrix IT Ltd. via reverse triangular merger, completed Feb 24, 2026
Merger terms	0.5878202 Matrix shares per Magic Software share (28,861,564 Matrix shares issued)
FY 2024 revenue	$552.5M
Q3 2025 revenue	$161.7M (record; +13.1% YoY)
2025 revenue guidance	$600–610M
Employees	~2,500+
Key products	Magic xpa (application platform), Magic xpi (integration platform)
Key customers	Capgemini, Johnson & Johnson, Kodak, and others

The Founding and the Platform

Magic Software emerged in 1983 as Mashov Software Export (MSE), a spin-off from Mashov Computers, an Israeli firm specializing in microcomputer business solutions. Co-founders David Assia and Yaki Dunietz built the company around a metadata-driven application-development approach — a way to build enterprise applications using declarative logic rather than traditional procedural coding. The core product, eventually branded Magic xpa, allows developers to build multi-channel enterprise applications (on-premise, web, mobile, SaaS) from a single development environment.

The second product pillar, Magic xpi, is an integration platform that connects enterprise applications, data sources, and cloud services. Together, the two platforms serve customers that need to build, maintain, and integrate business applications without the complexity and cost of traditional custom development.

Magic Software listed on Nasdaq in the early 1990s and maintained continuous dual listing on Nasdaq and the TASE for approximately 35 years — one of the longest Nasdaq tenures of any Israeli company.

Bernstein and the Formula Systems Structure

Guy Bernstein served as CEO of Magic Software while simultaneously holding the CEO role at parent company Formula Systems (1985) Ltd. (Nasdaq: FORTY). Formula, the Or Yehuda-headquartered Israeli technology holding company founded by Dan and Gad Goldstein, controlled approximately 53% of Magic Software. Formula's ultimate parent is Asseco Poland S.A., one of Europe's largest IT companies.

The Formula portfolio created an unusual structure: three Israeli enterprise-software companies — Magic Software, Sapiens International, and Matrix IT — all controlled by the same holding company, all listed on Nasdaq, all headquartered within a few kilometers of each other in the greater Tel Aviv area. Bernstein effectively ran the holding company and the operating company simultaneously.

Record Performance and the Matrix Merger

Magic Software's final quarters as an independent public company were its strongest. Q3 2025 delivered record revenue of $161.7 million, up 13.1% year-over-year. GAAP operating income rose 13.6% to $17.1 million. Bernstein credited "sustained demand for digital, AI-driven and cloud transformation solutions" and "disciplined execution across the organization."

On February 24, 2026, Formula Systems announced the completion of a merger between Matrix IT Ltd. and Magic Software. The transaction was structured as a reverse triangular merger: Matrix acquired all of Magic Software's outstanding shares in exchange for 28,861,564 ordinary shares of Matrix (0.5878202 Matrix shares per Magic Software share). Magic Software ceased to exist as an independent listed entity. The consolidation combined two Formula Systems subsidiaries into a single, larger Israeli IT-services and enterprise-software platform.

Where Magic Software Sits in Israeli Enterprise Software

Magic Software belonged to the founding generation of Israeli enterprise-software companies — the cohort that built durable, profitable, globally distributed businesses from the 1980s and 1990s, long before the venture-backed startup ecosystem that Israel became known for. Companies in this cohort — Magic Software, Sapiens, AudioCodes, Gilat Satellite Networks, CEVA — operated as Nasdaq-listed industrial-grade technology businesses for decades without the hypergrowth narratives of later Israeli tech generations.

By early 2026, the cohort had consolidated significantly. Sapiens was taken private by Advent for $2.5 billion. Magic Software was absorbed into Matrix. WalkMe was acquired by SAP for $1.5 billion. The era of multiple small-to-mid-cap Israeli enterprise-software companies holding independent Nasdaq listings was ending — replaced by consolidation into larger private-equity-owned or strategic-acquirer platforms.

FAQ

What was Magic Software Enterprises?
Magic Software was an Israeli enterprise application-development and IT-services company, founded 1983 in Or Yehuda, that provided metadata-driven development platforms (Magic xpa) and integration tools (Magic xpi) to enterprise customers globally. Merged into Matrix IT in February 2026.

Who founded Magic Software?
David Assia and Yaki Dunietz, as a spin-off from Mashov Computers in 1983.

Is Magic Software still listed?
No. Magic Software merged into Matrix IT Ltd. via a reverse triangular merger completed February 24, 2026. Shares are no longer independently traded.

Who controlled Magic Software?
Formula Systems (1985) Ltd. controlled approximately 53% of Magic Software. Formula's CEO, Guy Bernstein, also served as Magic Software's CEO. Formula's ultimate parent is Asseco Poland S.A.

How large was Magic Software?
FY 2024 revenue of $552.5 million, with 2025 guidance of $600–610 million. Approximately 2,500+ employees globally. Market cap approximately $853 million at merger.

What was the Matrix IT merger?
Matrix IT, a sister Formula Systems subsidiary, acquired all of Magic Software's outstanding shares in exchange for 28,861,564 Matrix ordinary shares (0.5878202 Matrix shares per Magic Software share). The combination created a larger Israeli IT-services and enterprise-software platform within the Formula portfolio.

How long was Magic Software listed on Nasdaq?
Approximately 35 years — from the early 1990s until the Matrix merger in February 2026. One of the longest continuous Nasdaq listings by any Israeli company.