The stock that is deleted from the stock exchange in Tel Aviv after 25 years

● The investment giant that is “shorting” the shekel, and the reasons
● The stocks that reached “high prices”, and the alternative

Magic was first listed on Nasdaq in August 1991 – one of the first Israeli technology companies to be listed for trading there – and at the end of 2000 it was the pioneer of dual listing on the Tel Aviv Stock Exchange – that is, the first company to be registered for dual trading in Tel Aviv and Wall Street in accordance with the dual listing rules that came into effect at the time.

Magic, which was established back in 1986, will merge into Matrix, which, like Magic, is also controlled by a group formula . In recent years, Magic and parent company Formula have both been run by Guy Bernstein. Matrix is ​​managed by Motti Gutman.

As part of the merger that is now completed, Matrix acquires the entire share capital of Magic by way of a reverse triple merger. The shareholders of Matrix will hold approximately 68.9% of the shares of the merged company and the balance will be held by the current shareholders of Magic.

Looking forward to technological synergies

Matrix is ​​a provider of IT services (computing infrastructure, software solutions, etc.), and Magic provides services in the field of software development and integration for computer applications, cloud services, cyber, AI and more. The companies expect technological and operational synergies and appreciate that their activities are complementary.

At the time the merger was reported in March last year, the combined value of the two companies was NIS 7.7 billion. Subsequently, both stocks soared and their combined value reached approximately NIS 13.8 billion last month, which positioned the merged company as a possible candidate to enter the TA 35 index. However, the sharp falls in the IT stocks in recent weeks did not escape the two stocks, with Matrix losing 36.4% of its value since mid-January and Magic losing 35.7% during this period. Before the merger, the value The aggregate of the two companies was NIS 8.8 billion, a value that is not expected to include it in the Tel Aviv 35 index in the next update.

Let’s recall that the IT stocks in the stock market fell against the background of the declines in the software sector in the US, which “infected” the local companies, even though their activities are different from those of software companies. The launch of AI tools by the Anthropic company ignited the fears that AI tools will harm the activities of the software companies, and increase the need for the many solutions they offer today. Lior Shilo, an analyst at the IBI investment house, recently commented on the sharp declines in the market And he wrote that there is a “tangible danger to the ‘skull’ model on which the IT giants are built,” because if an AI agent does the work of ten people, customers will not hire ten external consultants. However, he mentioned that the market is still growing and that “organizations will invest money to implement these AI tools. Someone will have to take the budgets and connect the new technology to the old systems, and this is precisely the role of the IT companies.”