(BIZ) 2nd Asseco Poland To Buy Israel's Formula Systems

3:47 PM by 
"WARSAW -(Dow Jones)- Asseco Poland SA (ACP.WA), Europe's fifth-largest software vendor by sales, said Friday it agreed to buy a controlling stake in Nasdaq-listed, Israel-based Formula Systems (FBT.TV).

The acquisition gives Asseco access to new markets, to the know-how of the innovative Israeli start-up culture, as well as to new products and technology, Asseco Chief Executive Adam Goral said. 'We've bought something it would have taken us years to build.'



Asseco will pay no more than $145.3 million in cash for the 50.19% stake, the company statement said in a statement. The sellers are Israel-based investment fund Emblaze Ltd. and a private individual.

Through its acquisition of Formula Systems, a holding company, Asseco is buying controlling stakes in three listed subsidiaries, Matrix IT (MTRX.TV), Magic Software Enterprises (MGIC.TV), and Sapiens International Corp (SPNS.TV).

Matrix IT, listed on the Tel Aviv Stock Exchange or TASE, is Israel's largest IT and integration company, with a client list that includes Israel government ministries, its aerospace industry, as well as Microsoft Corp (MSFT), SAP AG (SAP.XE), and Texas Instruments Inc (TXN).

Through Magic Software, Asseco is acquiring a cloud computing business, something completely new to Asseco as well as a chance to present our products to companies such as UPS Inc (UPS) or Sony Corp (6758.TO), Goral told reporters at a news conference.

Sapiens, which provides business solutions to insurers such as Allianz, Aviva and Axa, will help 'make more of an impression' on Poland's largest insurer Powszechny Zaklad Ubezpieczen SA (PZU.WA).

'Asseco gives [Formula] access to markets, especially central and eastern Europe, where until not we have been practically absent,' said Guy Bernstein, the chief executive of Formula Systems.

Formula Systems is also listed on the TASE. In 2009, it reported $19.1 million in net profit on sales of $469.4 million.

Rzeszow-based Asseco Poland has grown from a little-known producer of software for cooperative banks to Europe's fifth-largest software vendor by sales after a series of acquisitions in and outside Poland.

Both Formula as well as its subsidiaries have plans to make acquisitions themselves, the two companies said.

At 1246 GMT, shares in Asseco were down 0.2% at PLN55.00, underperforming Warsaw's large-cap WIG20 index." (source)