Israel’s Magic Software Enterprises, developer of business software development and integration tools, said it is selling its wholly owned subsidiary Advanced Answers on Demand (AOD) to private equity firm Fortissimo Capital for $17 million in cash.
Fortissimo is a special situations private equity fund founded by Yuval Cohen, a former general partner at Jerusalem Venture Partners (JVP). Based in Israel, Fortissimo Capital invests primarily in technology companies (public and private) that require capital infusion to expand their business. They are long term investors and seek to partner with management to facilitate growth and maximize value. Fortissimo recently got a serious cash injection, after selling Nur Microprinters to HP for $117 million in cash.
Magic Software is a subsidiary of the Formula Systems and Emblaze Group of companies. Magic has partnerships with giants like IBM and SAP as well as more than 2500 ISVs worldwide, giving Magic’s technology a reach to more than 1.5 million customers around the globe. Magic is headquartered in Israel and is listed on the Nasdaq Stock Market. This morning, Magic shares (MGIC) went up 4.23%, to $1.97.