Matrix and Magic Software Complete NIS 11 Billion Landmark Merger
After two years of intensive work, Matrix IT Ltd. and Magic Software Enterprises Ltd. have signed a definitive merger agreement, marking the largest merger in Israel’s IT sector.
The deal, structured as a reverse triangular merger, will see Matrix acquire Magic in exchange for newly issued Matrix shares, creating a combined IT powerhouse valued at approximately NIS 11 billion (around USD 3 billion).
The merger unites two publicly traded technology leaders — Matrix on the Tel Aviv Stock Exchange and Magic on both the TASE and NASDAQ — positioning the new entity among the largest publicly traded IT companies worldwide.
Given the magnitude of the transaction and the companies’ shared controlling shareholder, independent board committees were established to oversee and negotiate the terms.
Herzog represented Matrix’s independent board committee, led by partners Nir Dash and Reut Alcalay, with support from Shani Simani, Shimron Buskila, and Yehuda Weizman.
Gornitzky advised Magic Software and its independent special committee in the transaction, with Lior Porat and Uri Heller leading an extensive team, while Carter Ledyard & Milburn acted as U.S. counsel to Magic Software, with Partner Guy Ben-Ami playing a key role.
The merger reinforces Israel’s status as a global technology hub.
