Magic Software Announces Merger with Matrix IT

Magic ( (MGIC) ) has issued an update.

On November 3, 2025, Magic Software Enterprises Ltd. entered into a definitive merger agreement with Matrix IT Ltd., an Israeli public IT company, and its subsidiary, Magitrix Ltd. Under the agreement, Magic will become a wholly-owned subsidiary of Matrix, with Magic’s shareholders receiving Matrix ordinary shares, resulting in Magic shareholders holding 31.125% of Matrix’s shares post-merger. This merger, facilitated by a special committee, aims to maximize economic value for Magic’s shareholders and is subject to shareholder approval and other customary conditions. The merger is expected to enhance Magic’s market position and operational capabilities by aligning with Matrix’s resources and strategic direction.

The most recent analyst rating on (MGIC) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Magic stock, see the MGIC Stock Forecast page.

Spark’s Take on MGIC Stock

According to Spark, TipRanks’ AI Analyst, MGIC is a Neutral.

Magic Software Enterprises shows strong financial performance and positive earnings call highlights, with record revenues and growth in key regions. However, technical indicators suggest potential caution due to oversold conditions, and the valuation indicates the stock may be expensive. The dividend yield is a positive aspect for income investors.

To see Spark’s full report on MGIC stock, click here.

More about Magic

Magic Software Enterprises Ltd. operates in the information technology industry, providing software solutions and services. The company focuses on delivering enterprise-grade application development and business process integration platforms to a global market.

Average Trading Volume: 37,639

Technical Sentiment Signal: Buy

Current Market Cap: $1.02B

For an in-depth examination of MGIC stock, go to TipRanks’ Overview page.