Israeli IT services and consulting firm following recent merger matrix (TASE: MTRX) was one of Israel’s largest employers with 12,500 employees, including 10,682 in Israel, at the end of the third quarter. That’s more employees than Intel Israel, which for many years was Israel’s largest private employer until recent layoffs. only Elbit Systems Co., Ltd. (NASDAQ: ESLT;Tase:ESLT) with 14,000 employees Shufersal Co., Ltd. (Tase:Sae) The number of employees is increasing. 52% of Matrix’s employees are women.
Matrix, run by Formula Systems (TASE: FORTY) under CEO Moti Gutman, recently announced three acquisitions. One is Alacer, a US company that provides multi-million dollar IT consultancy services to large US companies such as Citi and Toyota. Ortec Marketing Equipment & Supply, an Israeli company that manufactures and sells equipment for the electronics and chip industries, was acquired in early December. And last week, Haifa-based Gav Systems and Gav Express, which provide a wide range of IT solutions including technology development, consulting and outsourcing, were acquired for NIS 45 million. The latter acquisition added 850 employees to Matrix’s rapidly expanding workforce.
For many years, Israel’s IT services sector has been one of the most active in mergers and acquisitions. The largest companies in this space, such as Matrix, Hilan (TASE: HLAN), One Software Technologies (TASE: ONE), and Malam-Team (TASE: MLTM), have made a number of acquisitions, primarily of smaller companies in the sector. and acquiring more companies. More business and more employees.
But while there has been a lull in the number of mergers and acquisitions in recent years, some recent developments may signal a renewed appetite among the sector’s biggest players. For now, most of the activity comes from Israeli industry giant Matrix, but earlier this month One Technologies acquired Bezek Online from Bezek for 50 million naira, and Hiran acquired the Israeli-Bulgarian company for 86 million naira. Acquired. .
At the beginning of the year, One had 7,052 employees, and the acquisition of Bezeq Online added an additional 2,400 employees, bringing Hilan to 5,360 employees and Malam Team to 4,818 employees.
The IT market covers a wide range of areas, from computing infrastructure to software solutions for organizations, payroll management, and human resources. The sales of the four major companies in the industry from January to September this year reached approximately NIS 12 billion, of which Matrix’s share was approximately 35%. The company reported a 7.5% increase in sales and a 19% increase in net profit since the beginning of the year to Sh203 million. Matrix’s stock price has soared 31% over the past year and the company’s market capitalization now trades at more than NIS 5.6 billion. The second-largest company in the industry, Hilan (market capitalization NIS 5.3 billion), had a lower price-to-earnings ratio of 22%.
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One Technologies and Malam Team stocks delivered much higher returns of 52% and 68%, respectively, over the past year. The Tel Aviv 125 Index, which includes these four major computer companies, rose 28% during the period.
Globes, Israel Business News – en.globes.co.il – Published December 19, 2024
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