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Formula gains 100% stake in Magic Software (MGIC) via Matrix merger

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
SCHEDULE 13D/A

Rhea-AI Filing Summary

Formula Systems and its affiliate Matrix IT now beneficially own all 49,099,305 Ordinary Shares of Magic Software Enterprises, representing 100% of the company’s outstanding stock as of February 24, 2026.

This change follows a reverse triangular merger in which Magic became a wholly owned subsidiary of Matrix. Formula owns 44,104,195 ordinary shares of Matrix, or 47.67% of Matrix’s outstanding shares, so it is deemed to control Matrix and, indirectly, Magic. The shares were acquired using working capital and are held for long‑term investment purposes, with Formula indicating it may buy additional shares over time and has no current plans to sell or undertake other major corporate actions.

Positive

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Insights

Magic Software becomes wholly owned and controlled via Matrix-Formula structure.

Magic Software Enterprises is now 100% beneficially owned through a structure where Matrix IT directly holds all 49,099,305 Ordinary Shares and Formula Systems controls Matrix by owning 47.67% of its shares. This formalizes full control without leaving outside shareholders in the float.

The filing describes a reverse triangular merger on February 24, 2026, turning Magic into a wholly owned subsidiary of Matrix, with Formula as the controlling parent. The transaction is funded from working capital and is framed as a long-term investment aimed at strengthening market position and capabilities.

Governance becomes more concentrated: Formula and Matrix share voting and dispositive power over Magic, and key executives such as Guy Bernstein and Asaf Berenstin hold stakes in both Formula and Matrix. Future company strategy and capital decisions will be driven entirely within this ownership group, with no indication in this excerpt of planned dispositions.






If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).






SCHEDULE 13D




Comment for Type of Reporting Person:
This beneficial ownership percentage was calculated on the basis of 49,099,305 outstanding Ordinary Shares of the Issuer as of February 24, 2026, which outstanding share information was provided to the Reporting Persons by the Issuer in response to the inquiry of the Reporting Persons. Based on indirect ownership as a result of deemed control of Matrix IT Ltd.


SCHEDULE 13D




Comment for Type of Reporting Person:
This beneficial ownership percentage was calculated on the basis of 49,099,305 outstanding Ordinary Shares of the Issuer as of February 24, 2026, which outstanding share information was provided to the Reporting Persons by the Issuer in response to the inquiry of the Reporting Persons.


SCHEDULE 13D


Formula Systems (1985) Ltd.
Signature:/s/ Asaf Berenstin
Name/Title:Asaf Berenstin/Chief Financial Officer
Date:02/26/2026
Matrix IT Ltd.
Signature:/s/ Nevo Brenner
Name/Title:Nevo Brenner/Chief Financial Officer
Date:02/26/2026

FAQ

What ownership change in Magic Software (MGIC) is disclosed?

The filing shows Formula Systems and Matrix IT now beneficially own 100% of Magic Software’s 49,099,305 Ordinary Shares. This followed a reverse triangular merger, making Magic a wholly owned subsidiary of Matrix, which is itself controlled by Formula through a 47.67% stake.

How did Formula Systems gain control of Magic Software (MGIC)?

Formula controls Magic Software indirectly through Matrix IT. Magic merged in a reverse triangular merger and became a wholly owned subsidiary of Matrix. Formula owns 44,104,195 Matrix shares, or 47.67% of Matrix’s outstanding shares, so it is deemed to beneficially control Magic’s entire equity.

How many Magic Software (MGIC) shares are now beneficially owned?

Formula Systems and Matrix IT report shared beneficial ownership of 49,099,305 Ordinary Shares of Magic Software. This figure equals 100% of Magic’s total issued and outstanding Ordinary Shares as of February 24, 2026, based on information provided to them by the issuer.

What is Formula Systems’ stated purpose for holding Magic Software (MGIC)?

Formula states it acquired Magic Software’s Ordinary Shares for long-term investment purposes. The filing notes Magic and Matrix viewed the merger as a strategic opportunity to strengthen market position, expand capabilities, and enhance shareholder value, with no current plans to dispose of Magic securities.

What role does Matrix IT play in Magic Software’s (MGIC) structure?

Matrix IT is the direct holder of all 49,099,305 Magic Software Ordinary Shares after the reverse triangular merger. Magic became Matrix’s wholly owned subsidiary, while Formula Systems, holding 47.67% of Matrix’s shares, shares voting and dispositive power and can be deemed to control Magic through Matrix.

Who are the key executives linked across Magic Software, Formula, and Matrix?

Guy Bernstein is Chief Executive Officer of Magic and Formula and Chairman of Matrix, holding 1,797,973 Formula shares and 88,173 Matrix shares. Asaf Berenstin is Chief Financial Officer of Magic and Formula, holding 31,833 Formula shares and 22,469 Matrix shares, aligning management interests across the group.
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