The acquisition enables the Group to expand its operations in the field of management of payroll and human resources, in which it currently operates through its subsidiary, Michpal
Or Yehuda, Israel, Nov. 19, 2019 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (NASDAQ and TASE: FORTY) announced today that it had completed its acquisition of 100% of the outstanding shares of Unique Software Industries (“Unique”) for consideration consisting of NIS 49 million in cash, plus up to NIS 12 million of additional cash that may be paid during the four years following the closing of the acquisition, subject to Unique’s achievement of certain performance goals as defined by Formula.
Unique is a software development and services company, which during its 30 years of operations, has provided integrated solutions in the field of payroll, including pay-stubs, pension services management, education funds management, and software solutions for managing employee attendance.
This acquisition constitutes an additional strategic move towards the expansion of Formula’s operations in the field of payroll and human resources management in which it currently engages primarily through Michpal Micro Computers (1983) Ltd., a wholly-owned subsidiary that operates in the field of shelf software for payroll management and employee attendance.
Following the acquisition of Unique, Formula will begin operating in the complementary field of outsourced payroll services, in which it was not active until now, and will seek to penetrate the field of services bureaus, by way of expanding its present customer base.
Shimon Maimon, CEO of Unique Software Industries, commented: “I truly believe in Formula’s capabilities, as a leading group that brings together stable transaction management with a proven record growth strategy, to open up new opportunities for Unique to expand in a variety of areas in the field of payroll services and solutions by way of strengthening its ties with its customers.”
Guy Bernstein, Formula Systems’ CEO, remarked: “The acquisition of Unique serves as the latest in a series of strategic moves to increase our solutions offering and our market share in the field of payroll services, in which we have operated since our acquisition of Michpal in 2017. These moves have included:
Unique’s activities are synergetic and complementary to Formula’s operations in the fields of payroll and HR management, and we estimate that its acquisition will lead to expanding our operations in these fields together with the broadening of Unique’s operations by capitalizing on Formula’s assets and transactional capabilities.”
About Formula:
Formula Systems, whose ordinary shares are traded on the Tel-Aviv Stock Exchange and ADSs are traded on the NASDAQ Global Select Market, is a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products.
Press Contact:
Formula Systems (1985) Ltd.
+972-3-5389487
ir@formula.co.il