Matrix It Ltd. · TASE:MTRX
Matrix It — Merger or Acquisition (March 2025)
15 slides from Matrix It's merger presentation, March 2025
Slide 1: Merger Transaction
Merger Transaction Entering an MOU for a merger with Magic The information contained in this Investors presentation constitutes a convenience translation. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law and represents the binding version and the on
Slide 2: Matrix 2002
2002 matrix
Slide 3: 2025
2025 Credit: NASA, ESA, and the Hubble Heritage Team
Slide 4: Merger Transaction: Magic + Matrix
MERGER TRANSACTION magic + matrix 4
Slide 5: The Merger Transaction
The Merger Transaction o On March 10, 2025, a Memorandum of Understanding (MOU) was signed between Matrix IT Ltd. (“Matrix”) and Magic Software Enterprises Ltd. (“Magic”) for the purpose of negotiating a binding merger agreement, under which Matrix will acquire the entire issued and paid-up share ca
Slide 6: Transaction Overview
Transaction Overview ❖ 100% stock merger of Matrix IT (Matrix) and Magic Software (Magic) with Matrix as the continuing entity Proposed Merger ❖ Structured as a Matrix acquisition of Magic with consideration of new Matrix shares issues to Structure Magic shareholders ❖ All-stock consideration would
Slide 7: A Powerful Combination That Accelerates Growth Opportunities
A Powerful Combination That Accelerates Growth Opportunities ✓ Increases scale to become Top 10 global Digital IT Services firm in major markets(1) $2bn+ 10%+ 14 Diversified geographic presence outside Israel FY24 Revenue FY24 EBITDA Margin Platforms and Software Packages ✓ in higher margin US / Oth
Slide 8: The Combined Company Would Be One Of The Largest Listed IT Services Firms Globally
The Combined Company Would Be One Of The Largest Listed IT Services Firms Globally U.S. Listed IT Services European Listed IT Services Rank Company Market Cap ($M) Rank Company Market Cap ($M) 1 $213,814 1 $28,936 2 81,672 2 4,958 3 41,330 3 3,656 4 34,342 4 2,132 5 23,319 6 11,222 5 2,042 7 8,249 6
Slide 9: The Opportunity
The Opportunity o A leap for Matrix in geographic expansion and diversity, in particular strengthening exposure to the U.S. as a strategic target market. o The merged company would rank #4 and #10 by market capitalization among European-listed IT Services peers and U.S.-listed IT Services peers, res
Slide 10: The Opportunity (Cont'd)
The Opportunity (Cont’d) o Significant improvement in profit margins – Magic’s gross margins are over 28% and operating margins over 11% (effective tax rate is also about 4% lower than Matrix’s). o Magic has a strong balance sheet with high net cash balances. o All stock deal structure avoids meanin
Slide 11: P&L Statement
P&L Statement Based on FY2024 financials, in ILS 000’s Revenues 5,579,538 Gross Profit 832,994 Gross Margin (%) 14.9% Operating Income 450,074 Operating Margin (%) 8.1% Net Income 288,224 Net Income Margin (%) 5.2% 11
Slide 12: P&L Statement
P&L Statement Based on FY2024 financials, in ILS 000’s Revenues 5,579,538 2,043,771 Gross Profit 832,994 581,401 Gross Margin (%) 14.9% 28.4% Operating Income 450,074 226,515 Operating Margin (%) 8.1% 11.1% Net Income 288,224 160,155 Net Income Margin (%) 5.2% 7.8% 12
Slide 13: P&L Statement
P&L Statement Based on FY2024 financials, in ILS 000’s + Revenues 5,579,538 2,043,771 7,623,309 Gross Profit 832,994 581,401 1,414,395 Gross Margin (%) 14.9% 28.4% 18.6% Operating Income 450,074 226,515 676,589 Operating Margin (%) 8.1% 11.1% 8.9% Net Income 288,224 160,155 448,379 Net Income Margin
Slide 14: Disclaimer
Disclaimer • The Company's assessments and information contained herein regarding potential benefits that may be derived from the transaction constitute "forward-looking statements" within the meaning of the Securities Law, 5728-1968. Such forward-looking statements are not guarantees of future perf
Slide 15: Thanks!
Thanks!