Magic Software (MGIC) on Monday announced that it signed an memorandum of understanding with respect to a proposed merger with Matrix I.T Ltd.

Shares of Magic Software climbed after the IT-consulting services company said it agreed to negotiate a merger deal with IT-services firm Matrix. Magic also reported higher fourth-quarter earnings and raised its semiannual dividend.

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Matrix IT (TASE: MTRX), the largest IT services company on the Tel Aviv Stock Exchange, has signed a memorandum of understanding to buy Magic Software Enterprises (TASE: MGIC; Nasdaq MGIC). According to a notice to the Tel Aviv Stock Exchange,

Q4 2024 Management View CEO Guy Bernstein highlighted the transformative impact of the announced merger with Matrix I.T., noting that this strategic move positions the combined entity as a global IT powerhouse.