Formula Systems (1985) Stock

Formula Systems (1985) Ltd. (Formula) operates as a global information technology company.

The company provides software services, proprietary and non-proprietary software solutions, software product marketing and support, computer infrastructure and integration solutions and training, integration and digital advertising solutions.

The company manages and operates its businesses through eight directly held subsidiaries, such as Matrix IT Ltd. ('Matrix'), Sapiens International Corporation N.V ('Sapiens'), Magic Software Enterprises Ltd. ('Magic Software'), Zap Group Ltd. ('ZAP Group'), Insync Staffing Solutions, Inc. ('Insync'), Michpal Micro Computers (1983) Ltd. ('Michpal'), Ofek Aerial Photography Ltd. ('Ofek'), and Shamrad Electronic (1997) Ltd ('Shamrad'); and one jointly controlled entity: TSG IT Advanced Systems Ltd. ('TSG'). In May 2022, Sapiens acquired the entire share capital of Sapiens Cognitive Ltd.

On January 1, 2023, Matrix acquired 70% of the share capital of Zebra AGR Technologies Ltd. ('Zebra'), which is engaged in the distribution of software products for about 20 international software manufacturers in the fields of information security and communication. Zebra will be consolidated in the financial statements of Matrix starting from the first quarter of 2023. Zebra provides distribution services, including consulting, logistics, financing, marketing, and professional services, with an authorized support and training center.

On June 19, 2022, Matrix IT, through Matrix Integration and Infrastructure Ltd., Matrix IT's wholly owned subsidiary, acquired all of the share capital of RDT (RDT Equipment and Systems (1993) Ltd., Asio Vision Ltd., and R.S.A. Test Systems Industry Ltd.). RDT provides services in the field of multimedia systems. RDT markets software solutions and systems for a wide range of technologies, including control and automation solutions, test and measurement equipment, advanced technological solutions for testing data communication, EMC products, radio frequency (RF) and microwaves components, and serves, among other things, as a representative in Israel for dozens of international software and hardware vendors.

On April 24, 2022, Matrix IT concluded the sale of 45.2% of the issued and share capital of Infinity Labs R. & D. Ltd. ('Infinity').

On January 27, 2022 (the 'Appush Acquisition Date'), Magic Software acquired 50.1% of Appush Ltd. (formerly known as Vidstart Ltd.) ('Appush'), a provider of a video advertising platform that offers personalized automated methods and real-time smart optimization, helping its clients achieve high yields in the competitive digital ecosystem.

On August 23, 2022, Magic Software acquired 100% of The Goodkind Group, LLC (TGG). TGG provides permanent and temporary staffing services in various sectors, including Information Technology, Accounting & Finance, Digital Media, Marketing, Human Resource, Financial Services. With On-Site programs and sourcing models TGG solutions includes functions which differs from standard staffing companies. TGG provides assistance in the areas of compensation design and development, employee opinion surveys, employment policies and practices, performance management, regulatory and compliance issues and succession planning.

On July 1, 2022, Magic Software acquired Intrabases SAS, a provider of IT professional services based in Nantes, France.

On February 16, 2022, Michpal acquired 70% of the share capital of Formally Smart Form System Ltd. (Formally). Formally is an Israeli-based company and the creator of Formally Smart Form platform - a central server platform for managing knowledge and work processes, and for producing digital forms combined with a legally-binding eSignature technology allowing customers to create impressive documents in minutes and get them signed in a snap. Formally offers a variety of proprietary computerized and advanced tools for managing business processes trusted by Israel's largest financial, banking, and insurance enterprises.

In February 2022, Zap Group completed the acquisition of 49.9% of the entire minority rights in its controlled partnership, Winhelp Ofran, a provider of digital advertising solutions for domestic travel businesses in Israel.

In December 2022, Zap Group concluded the acquisition of 51% of the outstanding share capital of N.C Marketing and Advertising Ltd. (also known as 'Safra digital marketing') and 51% of the outstanding share capital of Marcomit Ltd. ('Marcomit'). Safra digital marketing is an Israeli company specializing in social media services, including Facebook, Instagram and Tik-tok. Marcomit is an Israeli company specializing in digital branding for large enterprises including advanced branding materials for media and digital advertising.

On December 12, 2022, Insync acquired all of the outstanding share capital of Bear Staffing Services Corporation. Bear Staffing Corporation is a staffing agency providing talent for industries such as manufacturing, distribution, and call centers.

The company delivers its solutions in numerous countries worldwide to customers with complex IT services needs, including a number of 'Fortune 1000' companies.

The company provides its investees with its management, technical expertise and marketing experience to help them create a consecutive positive economic impact and long-term value, and direct their overall strategy through the company's active involvement. The company carries out those activities at the level of the company's investees rather than at the company's parent company level.

The company operates through its subsidiaries- Matrix, Sapiens, Magic Software, Michpal, Zap Group, InSync and Ofek Aerial Photography- and through the company's equity investee TSG. The company describes below the areas of its business activity:

IT Services

The company designs and implements IT solutions and software systems which improve the productivity of the company's customers' existing IT assets, enable them to effectively manage their operations and reduce their business risks in the face of changing business environments. In delivering the company's IT services, the company at times uses proprietary software developed by members of the Formula Group. The company provides its IT services across the full system development life cycle, including definition of business requirements, developing customized software, implementing software and modifying it based on the customer's needs, system analysis, technical specifications, coding, testing, training, implementation and maintenance. The company performs its projects on-site or at its own facilities.

Proprietary Software Solutions

The company designs, develops and markets proprietary software solutions for sale in selected niche markets worldwide. The company regularly seeks opportunities to invest in or acquire companies with attractive proprietary software solutions under development which have market potential. All of the company's investments and acquisitions in this area have been in companies with products beyond the prototype stage. In addition, from time to time, the company selectively invests in companies with proven technology where the company can leverage its experience to enhance product positioning and increase market penetration. The company provides its management and technical and financial expertise, marketing experience and financial resources to help bring these products to market. The company also assists the members of its group to form teaming agreements with strategic partners to develop a presence in international markets and to raise debt and capital.

The Formula Group

As of December 31, 2022, the company held 90.1% of the shares of InSync, an 80% interest in Ofek Aerial Photography, a 48.7% interest in Matrix, a 44.1% interest in Sapiens, a 46.3% interest in Magic Software, a 50% interest in TSG through the company's equity holdings, and the entire share capital of Michpal, Zap Group and Shamrad (acquired in 2022).

The company directs the overall strategy of its investees. While the company's investees each have independent management, the company monitors their growth through the company's active involvement in the following matters: strategic planning; marketing policies; senior management recruitment; investment and budget policy; financing policies; and support for the process of raising debt and capital.

The company promotes the synergy and cooperation among the company's investees by encouraging the following: transfer of technology and expertise; leveling of human resources demand; combining skills for specific projects; formation of critical mass for large projects; and marketing and selling the Formula Group's products and services to its collective customer base.

The company, through its investees, offers a wide range of integrated software solutions and IT professional services, such as implementation and integration projects of computing and software, outsourcing, software project management, software development, IT managed services, operating a network of high-tech training and instruction centers, providing software testing and QA, depending on specific needs of the customer and depending on the subject expertise necessary on a case by case basis, and design, develop and market proprietary software solutions for sale in selected niche markets, both in Israel and worldwide.

Subsidiaries

Matrix

Matrix IT Ltd. is Israel's leading IT services company as demonstrated in recent research reports of the Israeli IT market, published by the research companies IDC and STKI. Matrix employs approximately 11,200 software, hardware, integration, engineering and training personnel, which provide advanced IT services to hundreds of customers in the Israeli and the U.S. markets. Matrix executes some of the largest IT projects in Israel. It develops and implements leading technologies, software solutions and products. Matrix provides infrastructure and consulting services, outsourcing, offshore, near-shore, training and assimilation services. Matrix represents and markets leading software vendors. Among its customers are most of the leading Israeli organizations and companies in the industry, retail, banking and finances, education and academe, Hi-tech and ISVs, telecom, defense, health and the government/public sectors. Matrix is traded on the Tel Aviv Stock Exchange.

The solutions, services and products supplied by Matrix are designed to improve Matrix's customers' competitive capabilities, by providing a response to their unique IT needs in all levels of their operations.

Areas of Operation

Matrix operates through its directly and indirectly held subsidiaries in the following principal areas:

Information Technologies (IT) Software solutions and services, Consulting & Management in Israel.

Information Technologies (IT) Software solutions and services in the United States.

Computer and cloud infrastructure and integration solutions.

Software product marketing and support.

Training and integration.

Information Technologies (IT) Software solutions and services, Consulting & Management in Israel

The software solutions and services in Israel provided by Matrix IT consist mainly of providing tailored software solutions and upgrading and expanding mainly existing large-scale software systems. These services include, among others, developing customized software, adapting software to the customer's specific needs, implementing software and modifying it based on the customer's needs, outsourcing, software project management, software testing and QA and integrating all or part of the above elements. Furthermore, the activity in this segment includes project management consulting services and multi-disciplinary operational and engineering consulting services, including supervision of complex engineering projects, all according to client specific needs as the scope of work invested in each element varies from one customer to the other.

In 2022, Matrix completed through its subsidiaries Aviv, Dana Engineering, and Programa a series of large projects, including projects in the fields of transportation, environment, logistics and logistics warehouses, supply chains.

Information Technologies (IT) Software solutions and services in the United States

Matrix IT's activities in this segment are performed by two lines of business - Matrix US Holdings and Xtivia. The two line of business primarily provide software solutions and services of Governance Risk and Compliance ('GRC') experts, including activities on the following topics: risk management, management and prevention of fraud, anti-money laundering, and trade surveillance, as well as specialized advisory services in the area of compliance with financial regulation and operational services, as well as solutions and specialized technological services in areas such as: portals, BI (Business Intelligence) DBA (Data Base Administration), CRM (Customer Relation Management) and EIM (Enterprise Information Management). Furthermore, the activity in this segment includes dedicated solutions for the GovCon Government contracting market, IT help desk services specializing in healthcare and software product distribution services particularly IBM, BMC and Atlassian products to customers in the public-government sector in the U.S.

Matrix continued to collaborate in the United States with NICE Actimize in the field of providing artificial intelligence-based solutions to prevent money laundering and financial fraud. Likewise, it expanded its customer base in the U.S., including through the additions of Brinks and the Metropolitan Transportation Authority in New York as customers.

Computer and Cloud Infrastructure and Integration Solutions

Matrix IT's activities in this segment, is primarily providing computer solutions to computer and communications infrastructures, marketing and sale of computers and peripheral equipment to business customers, providing related services, and cloud computing solutions (through the business specializing unit of the company - Cloud Zone) and a myriad of services and products regarding office automation and printing solutions, representation of global leading manufacturers of test and measurement equipment, communication and cyber and RF solutions, projects and integration in the field of automation, calibration services in advanced technologies, provision of industrial video and image processing solutions, as well as Database services and Big data services (through the specialized business unit Data zone). Matrix infrastructure and integration solutions include solutions of IBM, Oracle Red Hat, Dell-Boomi and others.

Software Product Marketing and Support

Matrix IT's activities in this segment include marketing, distributing and support for various software products, web world content management, database and data warehouse mining, application integration, database and systems, data management and software development tools.

Training and Integration

Matrix's activities in this area consist of operating a network of training centers which provide advances courses for high-tech professionals, courses for developers and professional training, and soft skills and management training, and providing training and instructions with respect to computer systems. In recent years Matrix has also started outsourcing IT services based on graduates from its courses.

Matrix provides solutions, services and products primarily to the following market sectors (or verticals): banking and finance, high-tech and startups, industry and retail, government and the public sector, defense, transportation, healthcare, and education and academia.

Matrix offers to each market sector a broad range of solutions and services, customized for the specific needs of that sector. Matrix operates dedicated departments, each of which specializes in a particular sector. Each such department supplies customers in that sector with a products and services offering providing a response to most of its IT requirements, based on an in-depth business understanding of the challenges which are typical to that sector. Matrix established a separate division for each particular market sector, which manages the operations relating to that sector.

Specialization in the various sectors is reflected in the applications, professional and marketing aspects of each sector. Accordingly, the professional and marketing infrastructure required to support each market sector is developed to address such sector's specific needs.

In addition to the five sector-based areas of operations, Matrix operates three horizontal divisions providing specialist services for all of the different sectors of operations as follows:

Expertise centers - Matrix operates approximately 20 'expertise centers' ('Centers of Excellence'), in areas such as: Cloud Computing, Internet of Things (IOT), Digital, User Experience, Mobility (Mobile Technology), Analytical BI and Big Data, DevOps, Service Oriented Architecture (SOA), Customer Relations Management (CRM), Enterprise Resource Planning (ERP), eXtended Relationship Management (XRM), Open Source, Security & Cyber, Machine Learning and Artificial Intelligence. These expertise centers are based on business vertical concept, which is targeted to yield significant added value to the company's customers, including: group of professionals that are focused and have expertise in the related technologies, hands-on experience and expertise in the related technologies, methodologies, and best practices; and strategic management consulting center that provides customers with diverse consultation services on topics, such as organization, strategy, complex project management in areas, such as environmental planning, transportation and chain of supply, business development and technological development.

Matrix Global - Quality assurance and related professional services under an offshore/'nearshore' model.

Management/engineering consulting services - Comprehensive management and engineering consulting services, from the stage of adoption of strategy through the stages of implementation and effecting of changes, including project management of complex projects, including engineering projects, engineering supervisory projects of a wide scope, and projects in the fields of planning and environmental, and transportation, as well as multiple-field engineering advisory services and advisory and implementation in the field of management of supply chain and management of operational logistics.

In the context of its offshore/'nearshore' activities, Matrix conducts IT-related activities, including content development, quality assurance, maintenance, customer call center services indexing and related activities that are performed in a specific region or country where such activities can be conducted most inexpensively. Matrix offers its enterprise customers these types of solutions, whether via its 'nearshore' Talpiot project, via its offshore solutions that are based on its development centers in Bulgaria and Macedonia or via back-office and call center services through Babcom Centers Ltd. (a company located in the Galilee, housing thousands of educated and skillful men and women interested in developing a career near their homes).

Matrix's customers include large and medium size enterprises in Israel, including commercial banks, loan and mortgage banks, telecommunications services providers, cellular operators, credit card companies, leasing companies, insurance companies, security agencies, hi-tech companies and startups, the Israeli Defense Forces and government ministries and public agencies and media and publishing entities. The majority of Matrix's customers in the software solutions and value-added services business segment in Israel have a business relationship with it for more than ten years.

With the exception of the Software product marketing and support , all other operating segments of Matrix showed significant improvement in 2022 compared to 2021. This included activities such as cloud services, information security, as well as projects in the fields of health, digital, cyber and command and control. Over the course of 2022, Matrix launched several large projects, including the transfer of Discount Bank to a smart campus, and a project to establish an innovative database for the Israel Central Bureau of Statistics. Matrix also assumed the responsibility for the management of the technology and infrastructure of the National Police College, including the upgrade and replacement of most of the ICT and cyber systems, while also providing advanced technology services to all departments of the college.

The hybrid learning model developed by Matrix opened up many possibilities for growth with the ability to transfer courses to participants from all over the country, and also in the future, transfer courses abroad. In addition, Matrix developed self-learning training systems in the technological field that are sold to private and corporate customers.

Sapiens

Sapiens is a leading global provider of software solutions for the insurance industry. Sapiens' extensive expertise is reflected in its innovative software, solutions and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&A); workers' compensation (WC); medical professional liability (MPL); financial& compliance (F&C); and decision modelling for both insurance and financial markets. Sapiens offers an end to end solutions for insurers core, data & analytics and digital operations, as well as stand-alone solutions which help them optimize and maximize their current investment. Importantly Sapiens' wide array of professional services ensures that it not only makes a sale but accompany and guide its customers on their path to digital transformation.

Sapiens supplies decision management solutions tailored to a variety of financial services providers, so that business users across verticals can quickly deploy business logic and comply with policies and regulations throughout their organizations.

Sapiens' platforms possess modern, modular architecture and are digital-driven, providing full coverage for all business aspects of policy management, digital engagement and data analysis. They empower customers to respond to the rapidly changing insurance market and frequent regulatory changes, while improving the efficiency of their core operations. These process enhancements increase revenue and reduce costs.

Sapiens Software Solutions

Sapiens' software portfolio is consisted of:

Property & Casualty - a comprehensive software platform and solutions supporting a broad range of business lines, including personal, commercial, MPL and specialty lines, as well as reinsurance and workers' compensation (see below). The company's core solutions are pre-integrated with the company's DigitalSuite, analytics and decision modeling solutions, all of which are also available stand-alone. Sapiens' portfolio includes Sapiens Cloud-first Platform for Property & Casualty, which is consisted of a commonly shared Data and Digital solutions and two core suites: Sapiens CoreSuite for Property & Casualty (for North America) and Sapiens IDITSuite for Property & Casualty (for EMEA and APAC). The company provides a flexible proposition where Insurers can choose between deploying the company's full core suite or one or more of the company's standalone components: policy, billing and claims.

Life, Pension & Annuities - a comprehensive, cloud-based, digital software platform, suite and complementary solutions for the management of a diversified range of products for life, pension & annuities. The company's core solutions are pre-integrated with its DigitalSuite, analytics and decision modeling solutions, all of which are also available stand alone. The company's portfolio includes Sapiens Platform for Life, Pension & Annuities, Sapiens CoreSuite for Life, Pension & Annuities; Sapiens UnderwritingPro for Life & Annuities; Sapiens ApplicationPro for Life & Annuities; Sapiens IllustrationPro for Life & Annuities; and Sapiens ConsolidationMaster for Life & Pension.

Digital - Sapiens Cloud-based DigitalSuite enables insurers to incorporate a fully digital experience for customers, agents and employers, enhancing insurers' engagement with customers, enhancing their end-consumers' experience and fostering a rapid time to market for new digital initiatives. Sapiens Digital Suite is pre-integrated as part of Sapiens' comprehensive platforms or can be deployed stand-alone on top of any 3rd party core solution already in place. Consisted of innovative digital modules and content libraries to facilitate diverse customer journeys, DigitalSuite includes: low-code/no code Journey Composer, insurance-driven API Layer, and portal solutions for customers, agents and employers. Sapiens have also added an AI driven chat-bot solution (BotConnect) which knows to hand off to a live agent (LiveConnect) to facilitate omnichannel communications.

Cloud-based - Sapiens' solutions are running and deployed in public clouds of the leading global cloud vendors, providing the company's customers with them inherent benefits of a modern cloud-based application.

Data and Analytics - together with Sapiens' digital offering, Sapiens offers an advanced data and analytics platform, which includes: an analytics platform that drives analytics adoption across the organization with compelling, insightful dashboards and apps; a comprehensive BI solution with pre-configured reports, dashboards and scorecards; predictive analytics, which uses AI and Machine Learning to generate actionable insights based on different models across the insurance value chain.

Reinsurance - a market-leading complete reinsurance software solutions for full financial control and auditing support. Sapiens' portfolio includes: Sapiens ReinsuranceMaster, Sapiens ReinsurancePro and Sapiens Reinsurance GO, providing solutions to various sizes of insurance companies.

Workers' Compensation - Sapiens workers' compensation offerings handle comprehensive policy/billing and claims needs. Sapiens solution portfolio Sapiens CoreSuite for Workers' Compensation and Sapiens GO for Workers' Compensation, that can be deployed as a full suite or in a modular manner (policy / billing / claims), and is pre-integrated with Sapiens' DigitalSuite and its Analytics solutions.

Medical Professional Liability ('MPL') - Sapiens MPL offering provides a complete end-to-end solution for managing the insurance processes for the medical malpractice market, including policy management, billing and claims, all adjusted to the unique characteristics of this specific market. The Sapiens Digital and Data platforms are also pre-integrated to the MPL core solution and thus providing additional value add and benefits to Sapiens MPL customer base.

Financial & Compliance - Sapiens offers financial & compliance solutions consisted of both annual statement and insurance accounting software. This software includes Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro and Sapiens Reporting Tools.

Decision Management - Sapiens Decision is an enterprise-scale platform that enables institutions and 'citizen developers' across verticals to centrally author, store and manage all organizational business logic. Organizations use it to track, verify and ensure that every decision is based on the most up-to-date rules and policies. The company's Decision management products are offered across verticals (including commercial banking, investment banking, mortgage banking, insurance - for both P&C and life, government, etc.).

Technology-Based - tailor-made solutions (unrelated to the insurance or financial services market) based on Sapiens eMerge platform, which provides end-to-end, modular business solutions, ensuring rapid time to market.

Sapiens' Software Offerings

Sapiens' offerings not only enable the company's customers to effectively manage their core business functions - including policy administration, claims and billing - they support insurers on their path to digital transformation. Sapiens' portfolio also provides a variety of complimentary solutions for critical requirements, such as reinsurance management, underwriting management, illustration software, electronic applications and financial compliance tools. The latest versions of Sapiens' platforms possess modern, modular cloud-first architecture and are digital-driven, providing full coverage for all business aspects of policy management, digital engagement and data analysis.

Sapiens provides a comprehensive digital & analytics suite, which is pre-integrated in Sapiens core solutions, across P&C, L&A and WC business, but also available stand-alone to insurers whether they utilize the company's core solutions or not. Sapiens DigitalSuite provides a strong customer engagement and experience capabilities through a wide range of connectivity tools, such as portals, chatbots, live-chats and low-code/no-code digital business processes builders, are allowing insurance companies to rapidly go to mart with new propositions, and to manage a data-driven operation.

Sapiens offers its insurance customers a range of packaged software solutions that are:

Digital-led - revealing their history and anticipating their future needs, while facilitating easy engagement across preferred interaction channels and multiple devices.

Cloud-based - the company's solutions are running and deployed in public clouds of the leading global cloud vendors, providing the company's customers with the inherent benefits of a modern cloud-based application.

Data-driven - based on set of data analysis tools, from data-warehouse and reporting, through business intelligence and analytics, to predictive and advanced analytics - so the company's customers can become a data-driven operation.

Highly automated - by using various technologies, from decision to robotics, the company improves efficiency and offers agile customer engagement.

Comprehensive and proven- support for insurance standards, regulations and processes, by providing field-proven functionality and best practices.

Configurable and rich functionality-easily matches the company's customers' specific business requirements. The company's flexible architecture and configurable structure allow quick functionality augmentation that permits the company's platform to be used across different markets, unique business requirements and regulatory regimes. The company utilizes its knowledge and extensive insurance best practices and feature business-led configuration, thus enabling a rapid adaptation of the company's solutions using smart configuration tools and no-code/low-code approach.

Open architecture and insurtech ecosystem - provides easy integration to any external application under any technology, allowing streamlined connectivity to all satellite applications. This enhances the digital experience and omni-channel distribution, while maintaining total platform independence and system reliability. Easy interaction with various insurtech companies providing point-solutions that can be consumed by the company's platforms is enabled.

Component-based and scalable - allows the company's customers to deploy platforms and solutions in a phased and modular approach, reducing risk and harm to the business, while supporting the growth plans and cost efficiency of the organization.

Sapiens' packaged software solutions enable:

Rapid deployment of new insurance products - via configurable software and using pre-defined templates, which create a competitive advantage in all the insurance markets the company serves.

Improvement of operational efficiency and reduction of risk - full insurance process automation, with configurable workflows, audit and control, streamlined insurance practices, and simple integration and maintenance.

Reduction of overhead for IT maintenance - easy-to-integrate and simple-to-configure solutions with flexible and modern architecture, resulting in lower costs for ongoing maintenance, modifications, additions and integration.

Enhanced omni-channel distribution, communication and focus on the customers - event-driven architecture, a proactive client management approach, rapid access to all levels of data, and a holistic view of clients and distributors.

Cloud-first as a preferred deployment model - with the flexibility to also provide an on-premise deployment.

Support for digitalization -insurers and financial services institutions who manage to efficiently digitalize their operations, support omni-channel distribution and ensure that agents and customers are able to access real-time, accurate data at any time and from anywhere - including tablets and mobile devices - will unlock massive potential.

Cloud services - offering the company's customers access to a long-term engagement by providing comprehensive support for their daily IT operations, while allowing them to focus on their business KPIs.

Sapiens Property & Casualty Solutions

Sapiens Platform for Property & Casualty

The Sapiens Platform for Property & Casualty is an end-to-end, cloud-based platform with advanced digital and analytics capabilities. It can be implemented as a pre-integrated platform, or as standalone modules. The platform addresses all P&C carrier needs across all lines of business and distribution channels, offering a wealth of digital features. It is consisted of core (policy, billing and claims), data (advanced analytics) and digital (a full suite) solutions.

The cloud-based Sapiens DigitalSuite offers an end-to-end, holistic and seamless digital experience for P&C customers, agents, brokers, customer groups and third-party service providers. The suite is pre-integrated with Sapiens' P&C core and is consisted of digital engagement and digital enablement components.

Sapiens Suites for Property and Casualty are tailored by region: North America versus EMEA & Rest of World.

North America

Sapiens CoreSuite for Property & Casualty

Sapiens CoreSuite for Property & Casualty is consisted of three fully integrated, core components that can also be deployed stand-alone: Sapiens PolicyPro, Sapiens BillingPro and Sapiens ClaimsPro. CoreSuite is pre-integrated with additional components that can be selected, including business intelligence, reinsurance and digital solutions, as well as various interfaces. This modular, automated, highly customizable suite offers a single platform for personal, commercial and specialty lines of business (LoBs).

Sapiens PolicyPro

The Sapiens' PolicyPro solutions for property & casualty come pre-integrated with the core system. They are easily integrated with existing and external systems and applications. The solutions manage the end-to-end policy administration lifecycle of an insurance contract, from initial quote, through rating and policy issuance. They also feature a complete range of policy issuance and amendment capabilities. Agents, underwriters and customers use the solutions to quote, issue and administer policies. The offerings provide comprehensive policy lifecycle support for all P&C lines of business.

Sapiens BillingPro

The Sapiens' billingPro solution for P&C enables carriers, MGAs and brokers to manage the full lifecycle of premium services, taxes and fees, along with commission billing, collection and disbursements. P&C carriers can integrate with third-party systems and data repositories, enjoy best-in-class usability and automate processes throughout the billing lifecycle.

Sapiens ClaimsPro

Sapiens' claims solutions for property & casualty provide simplified management and automated control of claims management handling and the settlement process. They offer intelligent, rules-driven workflow with effective claim assignment, ensuring faster cycle times, as well as rules-driven automatic claims payment.

EMEA and Rest of World

Sapiens IDITSuite for Non-life/General/Short Term Insurance

The Sapiens IDITSuite for Property & Casualty is a cloud-based, component-based, standalone software solution suite that offers policy, billing and claims and forms the core of the Sapiens Platform for Property & Casualty. IDITSuite supports all end-to-end core operations and processes for the non-life P&C market from inception, to renewal and claims. This pre-integrated, fully digital suite offers customer and agent portals, business intelligence and more. IDITSuite enables insurers to expand their offerings by testing new lines of business, products and services using the company's flexible product factory.

The suite is modular and can integrate with your ecosystem's components. Sapiens IDITSuite for Property & Casualty includes multiple lines of business in one policy for multiple insured objects and assets. It can support corporate agreements and master policy structures. IDITSuite is designed with growth and change in mind, with extensive multi-company, multi-branding, multi-country, multi-currency and multi-lingual capabilities. The IDITSuite management system is built on open technology and can be used across devices.

Also available in different parts of the world:

Diana Solution for Property & Casualty (Spain)

The Diana solution for Property & Casualty tailored for the Iberian market, empowers insurance companies with a product engine, as well as policy, billing, claims and reinsurance capabilities. A fourth-generation solution Diana supports all core operations and processes for the P&C market, and supports bank assurance, brokers and direct insurance. The suite is modular, flexible and customizable through module workshops. Diana ecosystem is being enhanced through new features in micro services technology, like group policy management and injury agreements. In 2022, Sapiens signed an agreement with Toyota Insurance Management Spain (Toyota Seguros) with the aim of transforming and modernizing its business. As such, Toyota's insurer will be implementing Sapiens DianaSuite to manage the core of its insurance offering.

Fully digital SCIP Core (DACH)

SCIP CORE is a flexible, high-performance, cloud-capable and easily extensible inventory management platform. It offers all essential processes for efficient contract and claims processing and can be flexibly configured and extended in a few weeks. SCIP CORE digitally enables end customers, agents, claim handlers by using extensive self-services in different interfaces and portals.

Tia Enterprise (Nordics)

Tia Enterprise (which the company has or will rename Sapiens Denmark) is a component-based, software solution suite that offers policy, billing and claims. Tia Enterprise can be hosted on-prem or in the cloud and can be extended through an API layer to incorporate ecosystem solutions, as well as a digital communications and enablement layer and advanced analytics/BI. Tia Enterprise supports all end-to-end core operations and processes for the non-life market from inception, to renewal and claims.

OASIS for MPL

OASIS is a fully integrated collection of components designed to embed core functionalities required in the MPL sector, including underwriting, policy management, claims management, financial management, BI and predictive analytics. The component-based platform delivers maximum out of the box functionality and stationing which ensures OASIS can easily integrate within a legacy environment.

Sapiens Life, Pension & Annuity Solutions

Sapiens Platform for Life, Pension & Annuities

The Sapiens Platform for Life, Pension & Annuities is a modern, digital insurance platform that includes core, data and digital solutions. With the ability to deploy its offerings as a complete platform, or as standalone modules, Sapiens can address life providers' needs across all their lines of business and distribution channels. The company's mature platform is cloud and API-based, and features a strong core and advanced analytics, as well as data enablement and full digital engagement capabilities.

Sapiens CoreSuite for Life, Pension & Annuities

Sapiens CoreSuite for Life, Pension & Annuities is designed to provide excellence in the administration of insurance business, facilitate digital transformation and fast time-to-value for digital strategies, and create greater efficiency via legacy consolidation. It offers insurers a single platform for individual and group business; transformation, enablement and execution for digital strategies; and greater efficiency via improved automation, user experience and system consolidation.

Sapiens CoreSuite for Life, Pension & Annuities suite supports the end-to-end administration of group and individual life, annuities, pension and investment business ? in a single system. The suite offers a 360-degree view of the customer from their policy administration system, across all distribution channels and communication streams.

The company's unique conversion approach reduces the risks involved in migrating from existing legacy systems.

Complimentary modules are available in North America:

Sapiens UnderwritingPro for Life & Annuities

Sapiens UnderwritingPro for Life, Pension & Annuities is a web-based solution for automated underwriting and new business case management that is part of Sapiens' solution set for life insurers. It speeds new business processes for insurance carriers and their channels, offering an intuitive user interface with critical updates and task assignments provided on a real-time dashboard. Sapiens UnderwritingPro enables underwriters and case managers to work on multiple cases simultaneously.

Sapiens ApplicationPro for Life & Annuities

Sapiens ApplicationPro for Life & Annuities is a digital insurance application software that helps carriers address critical business drivers, such as decreasing time-to-issue and reducing policy acquisition costs, all in an extremely intuitive and easy-to-use package. Carriers have a choice of a standalone eApplication system, or a more comprehensive solution that seamlessly integrates with Sapiens IllustrationPro for Life & Annuities and Sapiens UnderwritingPro for Life & Annuities.

Sapiens IllustrationPro for Life & Annuities

Sapiens IllustrationPro for Life & Annuities is a point-of-sale solution, offering responsive product illustrations from any device. ACORD-compliant, it offers straight-through processing, from point-of-sale to application e-submission, supported by a needs analysis suite. IllustrationPro explains complex products in a compelling way. Its powerful calculation engines handle the most complex product illustrations, including the appropriate historical and hypothetical references.

Sapiens ConsolidationMaster for Life & Pension

Sapiens ConsolidationMaster is a purpose-built, end-to-end, legacy, portfolio-focused system with a unique migration methodology that deals with 'dirty' data. The solution has over 500 product templates capable of supporting the compliant administration of legacy products in any language and regulatory jurisdiction. ConsolidationMaster is designed to significantly cut the costs that are commonly associated with legacy platforms.

Sapiens Digital Offerings

Sapiens DigitalSuite offers an end-to-end, holistic and seamless digital experience for customers, agents, brokers, risk managers, customer groups and third-party service providers. The suite is pre-integrated with Sapiens' core solutions. The DigitalSuite is also available stand-alone, and can be easily integrated with 3rd party core and ecosystem solutions through an advanced API layer. This facilitates digital transformation and fast time-to-value for digital strategies. It enables life carriers to become engaged, agile organizations with increased sales opportunities.

Sapiens DigitalSuite was designed to enable the company's carrier customers to deliver on the future of user and customer expectations. DigitalSuite is an offering that can react to market changes, support flexible interaction with dynamic APIs and offer a modern user experience. The company's DigitalSuite features component-based architecture, built on modern technologies and customer-centric design.

Sapiens DigitalSuite is consisted of innovative digital modules, which can be used together or stand-alone, and content libraries to facilitate diverse customer journeys, omnichannel communications and include rich portal content: Sapiens AgentConnect, EmployerConnect and CustomerConnect.

All digital offerings are entirely supported in the cloud.

Sapiens Digital API Layer and Conductor

This highly scalable layer facilitates an open-communication, API-based platform that enables carriers to interact with insurtech companies, ecosystem technology providers and business partners. By enabling seamless interaction with any service under any technology, Sapiens' open architecture ensures that providers will easily choose the building blocks they need. They'll be able to easily define new APIs on the fly and seamlessly integrate all elements within their insurance ecosystem, to succeed today and prepare for the future.

Sapiens Customer Journey and Form Builder

Features journey and form builders, journey analytics and deployment management capabilities - enables business users to easily create and maintain digital journeys, using a low-code/no-code approach. This component empowers insurers with agility and fast time to market, based on its 'one click to deploy' functionality. Also available are full versioning capabilities and an extendable UI components library.

Sapiens AgentConnect,and CustomerConnect

These are dynamic portals built to deliver the optimal experiences expected by customers, brokers, agents, employers, alike, providing a high level of personalization to meet the diversified, individual needs of customers.

Sapiens BotConnect and LiveConnect

Sapiens brings conversational messaging to the next level, making it highly efficient in engaging customers. Sapiens BotConnect (AI-based chatbot) and LiveConnect (Omni-channel live chat) are designed to cultivate and enhance conversational messaging by ensuring perfect handoffs between different channels and personas, which translates into one unified customer-centric and smooth experience for both customers and the reps that cater to their needs. Together, this duo of components greatly improves the operational efficiency, providing a better service level to end-customers, based on their channel of choice.

Sapiens PartnerHub and Partner Ecosystem

Sapiens is a global organization with over three decades of extensive experience in insurance innovation and technology. Sapiens seek out and identify the most relevant, advanced and innovative technology solutions for the insurance market. Sapiens connect third-party technology and insurtech solutions to the company's Sapiens PartnerHub, from where the company makes their offerings available to insurers for their own use, and for the use of their customers.

Sapiens Analytics and Data Platform

Sapiens offers its analytics solutions, across both Life and P&C businesses, which include insightful dashboards, reporting and apps; and predictive analytics which utilize AI and machine learning, generates actionable insights based on different models across the insurance value chain. By integrating with the company's advanced analytics solution and data warehouse, the company can quickly generate actionable insights, self-service business intelligence and data discovery capabilities.

Sapiens Reinsurance Solutions

Sapiens reinsurance solutions are comprehensive business and accounting systems, providing a superior management for all types of reinsurance contracts - treaty and facultative, and proportional and non-proportional. It enables insurers of all sizes to manage their entire range of reinsurance contracts and activities for all lines of business, including rich accounting functionality and reporting capabilities.

Sapiens' reinsurance solution enables full and flexible control of reinsurance processes, with built-in automation of contracts, calculations and processes. By incorporating fully automated functions adapted conveniently for your business procedures, Sapiens Reinsurance provides flexible and total financial control of your reinsurance processes, including complete support for all auditing requirements and statutory compliance.

The solutions are available in three flavors:

ReinsuranceMaster (in EMEA, APAC and for global insurers), ReinsurancePro (in N. America) which also produces schedule F automatically, and Reinsurance GO (N. America) which is designed to meet the ceded reinsurance processing needs of property & casualty providers, from calculating premium and claim cessions, to producing the data required for Schedule F.

Sapiens Workers' Compensation Offerings

Sapiens Platform for Workers' Compensation

Sapiens Platform for Workers' Compensation includes the Sapiens CoreSuite for Workers' Compensation, and comes pre-integrated with Sapiens DigitalSuite, including Sapiens EmployerConnect a digital portal for employers and Sapiens Analytics and Data platform.

Sapiens CoreSuite for Workers' Compensation

Sapiens CoreSuite for Workers' Compensation offers larger carriers, administrators and state funds the technology solutions that enable them to adapt quickly to business and market conditions, offering high levels of accuracy and efficiency. The suite provides broad functionality throughout the entire insurance lifecycle for workers' compensation, via a core suite, as well as policy, claims and intelligence modules that can be deployed individually, or as an integrated solution. This suite can be purchased as an integrated offering, or standalone components: Sapiens PolicyPro and Sapiens ClaimsPro.

Sapiens GO for Workers' Compensation

Sapiens GO for Workers' Compensation was developed specifically for carriers, managing general agents (MGAs), self-insurance funds and third-party administrators. Sapiens GO can deliver a turnkey solution in just 120 days. With its streamlined user interface and advanced business features, the suite addresses critical objectives. This suite can be purchased as an integrated offering, or standalone components: Sapiens PolicyGO and Sapiens ClaimsGO for Workers' Compensation.

Sapiens Financial & Compliance Solutions

Sapiens' set of financial & compliance solutions consisted of both annual statement and insurance accounting software includes:

Sapiens FinancialPro - accounting software designed for insurers to meet their unique requirements for cash, statutory and GAAP reporting, well as unique allocation and consolidation needs. It handles multi-basis accounting and inter-company transactions and facilitates the speed and accuracy of financial reporting.

Sapiens Financial GO - offers small- and mid-sized insurers a solution for cash, statutory and GAAP reporting, as well as unique allocation and consolidation needs. Sapiens Financial GO manages and presents data to help insurance managers make informed decisions.

Sapiens StatementPro - makes statement preparation faster and simpler by offering one-click navigation between statements, pages and form validations (cross-checks) to the pages they reference and offering one-step filing.

Additionally, Sapiens offers Sapiens CheckPro and Sapiens reporting tools.

Sapiens Business Decision Management Solutions

Sapiens Decision is a complete decision management platform that places software development in the hands of the business domain, creating 'citizen developers,' and enforces business logic across all enterprise applications. Decision effectively addresses the complexity of determining and then translating business logic - data, business rules and machine learning used to make business decisions - into operational code. The business side of the organization can model, validate, test and simulate the business logic required for all new processes using Sapiens Decision. The process takes days or weeks, instead of months or years. A rigorous, structured approach ensures accuracy, efficiency and consistency during modeling. The models may then be automatically generated and deployed as code into automated DevOps environments, ensuring that the software is fully aligned with the organization's business needs.

Sapiens is focusing on the development and marketing of Sapiens Decision in the financial services market in North America and Western Europe, and the company is building best practices where the scale and complexity of operations requires enterprise-grade technology that can easily be adapted as policies and business strategies rapidly evolve. Sapiens developed and market Sapiens Decision for several verticals, including the insurance industry, and leverage the company's industry knowledge and close relationships with the company's existing customers and partners. Decision targets multiple markets:

Sapiens Decision for Financial Institutions (including Consumer & Commercial Banking, Investment Banking, & Mortgage Banking)

Tailored to meet the needs of Consumer & Commercial Banking, Investment Banking and Mortgage Banking institutions addresses the cost of change. It enables banks to efficiently adapt their operations to the demands of digital transformation, changing regulations, customer demands and increasing competition, using model-driven development (MDD). The MDD approach, enables businesspeople to define business logic in easily understood models. The process takes days or weeks, instead of months or years. It enforces business logic across all enterprise applications.

Sapiens Decision for Insurance

Sapiens Decision for Insurance enables insurers to efficiently adapt their business operations to the demands of digital transformation, changing regulations, customer demands and increasing competition. It is used by a top-tier, P&C insurance company to implement process automation and effect digital transformation.

Sapiens Decision for Government

Sapiens Decision for Government provides the capability to automate manual processes, alleviates gaps coming from different roles and interpretations, and creates fully validated policy artifacts in a format that other roles in the organization can understand.

Sapiens Technology-Based Solutions

Sapiens eMerge

Sapiens eMerge is a rules-based, model-driven architecture that enables the creation of tailor-made, mission-critical core enterprise applications with little or no coding. The company's technology is intended to allow customers to meet complex and unique requirements using a robust development platform. For example, the company performs proxy porting for its customers in an efficient, cost effective manner with Sapiens eMerge.

Sapiens Services

Sapiens' services modernize and automate processes for insurance providers and financial institutions around the globe, helping to create greater organizational efficiencies, reduce costs and provide a better end user experience. They can be divided into three main categories: program delivery, value added services and cloud services.

Sapiens has partnered with both Microsoft Azure and AWS to offer its solutions over private and public (single tenant) clouds. Sapiens' cloud deployment includes full infrastructure for operations, plus the option of choosing cloud-related cloud services delivered by Sapiens' experienced professional services team.

Sapiens delivery methodologies are typically based on Agile approach or a hybrid agile-waterfall approach that fits best some segments of the company's market. Sapiens also provides delivery tools and delivery performance indicators. Built on a solid foundation of insurance domain expertise, proven technology and a history of successful deployments, the company's organization assists clients in identifying and eliminating IT barriers to achieve business objectives.

Sapiens' services modernize and automate processes for insurance providers and financial institutions around the globe, helping to create greater organizational efficiencies, reduce costs and provide a better end-user experience. Built on a solid foundation of insurance domain expertise, proven technology and a heritage of successful deployments, the company assists clients in identifying and eliminating IT barriers to achieve business objectives.

Sapiens' implementation teams assist customers in building implementation plans, integrating Sapiens software solutions with their existing systems, and deploying specific requirements unique to each customer and installation. Sapiens' business services include API integration management and business intelligence (BI) and advanced analytics consolidation. Sapiens' cloud services offer ongoing production support and a 24/7 help desk.

Sapiens' service teams possess strong technology skills and industry expertise. The level of service and business understanding they provide contributes to the long-term success of the company's customers. This helps Sapiens develop strategic relationships with Sapiens' customers, enhances information exchange and deepens the company's understanding of the needs of companies within the industry.

Through Sapiens' service teams, Sapiens provides a wide scope of services and consultancy around Sapiens' solutions, both in the initial project implementation stage, as well as ongoing additional services. Many of Sapiens' customers also use Sapiens' services and expertise to assist them with various aspects of daily maintenance, ongoing system administration and the addition of new solution enhancements.

Sapiens sometimes partners with several system integration and consulting firms to achieve implementations for the company's customers. Sapiens has developed an efficient, repeatable methodology that is closely aligned with the unique capabilities of the company's solutions.

The services offered by Sapiens (and its partners') teams include:

Adding new lines of business and functional coverage to existing solutions running in production.

Ongoing support services for managing and administering the solutions.

Creating new functionalities, per specific requirements of the company's customers.

Assisting with compliance for new regulations and legal requirements.

In addition, many of Sapiens' clients choose to enter into an ongoing maintenance and support contract with Sapiens. The terms of such a contract are usually twelve months and are renewed every year. A maintenance contract entitles the customer to technology upgrades (when made generally available) and technical support. Sapiens also offers introductory and advanced classes and training programs available at the company's offices and customer sites.

Some of Sapiens' offerings include:

Program delivery includes:

Project and program management - Overall program planning, governance, PMO services and risk management.

Training - Training needs analysis and consulting, train-the-trainer, user training, and application configuration training.

Testing - Test strategy consulting, design and planning, SIT / Functional UAT / Business UAT, migration testing, performance / scalability and load testing, security testing and testing automation.

Migration consulting- Migration strategy consulting and planning, data extract and load, data cleansing and data reconciliation.

Development, implementation and integration - Technical Solution Architecture (TOM), Analysis and Design, Development and Configuration, core system integration and project management.

Value added services are consisted of:

User acceptance testing (UAT) - is different than system testing. UAT is a complementary stage, which focuses on business processes, user's journeys, and acceptance criteria as outlined in the specifications.

Migration Services - full ownership of the migration of systems from one system to another.

Analytics Services - let Sapiens' experts help you build predictive models which are aligned and integrated into your insurance practices.

Cloud services include:

Hosting Infrastructure Services: Virtual machines selection based on the applications architecture and performance requirement to ensure a value-for-money approach. Cloud services, including among others, network, business continuity and security.

Hosting IT Services: continuous services that obviate the need for local IT involvement to maintain the infrastructure and includes: Operation Control Center (OCC) as a service, Security Operation Center (SOC) as a Service, Backup as a service, DBA as a service, DevOps as a service, Disaster Recovery (DR) as a service.

Applications Cloud Services: extends the standard maintenance agreement to provide additional services for Sapiens' solutions based on specific customer needs, and may include any of the following: Extended maintenance and support - Customer layer/components defect handling and extended SLA, Application changes - setup / config / workflow / templates, Application operation - batches / release deployment / performance monitoring, Sapiens+ - support for non-Sapiens products (optional).

Sapiens Sales and Marketing

Sapiens' main sales channel is direct sales, with a small portion of partner sales. Sapiens' sales team is spread across its regional offices in North America, the United Kingdom, Israel, India, Poland, the Nordics, Spain, Singapore, South Africa, Canada, Latvia and Germany. The direct sales force is geared to large organizations within the insurance and financial services industry.

Sapiens' sales teams are sufficiently large to service its target regions - North America, the U.K., Europe and South Africa - and to execute sales, while also being assisted by the company's presales, domain experts and marketing teams. The company anticipates that Sapiens' sales team will leverage its proximity to customers and prospective clients to drive more business, and offer its services across its target markets.

Sapiens' customer success teams were focused on building ongoing relationships with existing customers during the past year, to maintain a high level of customer satisfaction and identify up-selling opportunities within these organizations. Sapiens believes that a high level of post-contract customer support is important to its continued success.

As part of its sales process, Sapiens typically sell a package that includes a license, implementation, customization and integration services, and training services. All of Sapiens' clients for whom it has deployed its solutions elect to enter into an ongoing maintenance and support contract with Sapiens. Sapiens aims to expand its distribution model to include more channel partners and system integrators, but it intends to maintain the direct sales model as its prime distribution channel.

Sapiens attends major industry trade shows (both physical and virtual) to improve its visibility and its market recognition. Additionally, Sapiens hosts client conferences- such as its annual Sapiens Summit/Client Conference, which went virtual in 2020 and 2021, and was in-person in North America in 2022. In 2023, Sapiens plans to host two client conferences in Barcelona, Spain, and Tuscon, Arizona. Sapiens continues investing in its web presence and digital marketing activities to generate leads and enhance the company's brand recognition. Sapiens maintains a blog channel and also invests in its working relationships and advisory services within the global industry-analyst community.

Sapiens works together with standards providers- such as ACORD- to further enrich its offerings and provide its customers with comprehensive and innovative solutions that address the entire breadth of their business needs.

Magic Software

Magic Software is a global provider of: (i) software services and Information Technologies ('IT') outsourcing software services; (ii) proprietary application development and business process integration platforms; (iii) selected packaged vertical software solutions; and (iv) cloud based services for end to end digital transformation.

Magic Software's software technology is used by customers to develop, deploy and integrate on-premise, mobile and cloud-based business applications quickly and cost effectively. In addition, its technology enables enterprises to accelerate the process of delivering business solutions that meet current and future needs and allow customers to dramatically improve their business performance and return on investment. Magic Software also provides selected verticals with a complete software solution and return on investment.

Based on its technological capabilities and its specialists, Magic Software enables its clients to respond to rapidly evolving market needs and regulatory changes, while improving the efficiency of their core operations. Magic Software has approximately 4,161 employees, who serve its clients at any given time and whose skills and specialization are a significant source of competitive differentiation. Magic Software operates through a network of over 3,000 independent software vendors, or ISVs, who the company refers to as Magic Software Providers, or MSPs, and hundreds of system integrators, distributors, resellers, and consulting and OEM partners. Thousands of enterprises in approximately 50 countries use Magic Software's products and services.

Magic Software's Software Technology Platforms

The company enables organizations to differentiate themselves from their competition through software-enabled digital transformation.

Throughout the company's history, the company has traditionally maintained two major lines of products, one is the company's application development platform, which today is known as Magic xpa Application Platform, an evolution of the company's original metadata-based development platform; and the second is the company's application integration platform, Magic xpi Integration Platform, originally introduced in 2003 under the name iBOLT. In December 2011, the company acquired the AppBuilder development platform of BluePhoenix Solutions Ltd., a leading provider of value-driven legacy IT modernization solutions. AppBuilder is a comprehensive application development infrastructure used by many Fortune 1000 enterprises around the world. This enterprise application development environment is a powerful, model-driven tool that enables development teams to build, deploy, and maintain large-scale, custom-built business applications. On April 2019, the company acquired the SmartUX development platform of PowWow Inc., a leading Low-Code enterprise mobile development application platform for citizen to professional developers to rapidly design, build, analyze, and run cross-platform mobile business applications.

The company's low-code platforms employ an intuitive, visual interface and pre-built development modules that reduce the time required to build powerful and unique applications. The company's platform automates the creation of forms, workflows, data structures, reports, user interfaces, and other software elements that would otherwise need to be manually coded. This functionality greatly reduces the iterative development process, allowing for real-time optimization and ultimately shortening the time it takes to design, build, and deploy applications.

The company's customers leverage its technologies to apply the right automation approach for their specific use case. The company's unified low-code platforms are a differentiator in the marketplace. The company strives to deeply integrate the company's capabilities so that they are all interoperable and low-code making it easier and faster for the company's clients to address complex use cases, particularly those that involve multiple departments within an organization.

Magic Software's software technology platforms consist of:

Magic xpa Application Platform - a proprietary low-code application platform for developing and deploying Client Server/Mobile/Web business applications.

AppBuilder Application Platform - a proprietary low-code application platform for building, deploying, and maintaining high-end, mainframe-grade business applications.

Magic xpi Integration Platform - a proprietary low-code platform for application integration.

Magic xpi cloud native -an environment configurations platform based on Kubernetes focuses on scalability, security and resilience.

Magic SmartUX - a proprietary low-code enterprise mobile development application platform for citizen to professional developers to rapidly design, build, analyze, and run cross-platform mobile business applications.

FactoryEye - a cloud-based platform pre-packaged but flexible end-to-end data management for manufacturers enabling smooth migration to Industry 4.0 smart factories. Real-time factory floor visibility and optimization is provided as part of the end-to-end visibility to maximize production performance.

Magic Data Management and Analytics Platform - a cloud-based pre-packaged but flexible end-to-end data management platform for all verticals enabling smooth digital transformation and full organizational business intelligence.

Magic Software's Vertical Software Packages

Magic Software's vertical packaged software solutions include:

Clicks - offered by its Roshtov subsidiary, Clicks is a proprietary comprehensive core software solution for medical record information management systems, used in the design and management of patient-file for managed care and large-scale healthcare providers. The platform is connected to each provider clinical, administrative and financial data base system, residing at the provider's central computer, and allows immediate analysis of complex data with potentially real-time feedback to meet the specific needs of physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals and consumers.

Leap - offered by its FTS subsidiary, Leap is a proprietary comprehensive core software solution for BSS, including convergent charging, billing, customer management, policy control, mobile money and payment software solutions for the telecommunications, content, Machine to Machine/Internet of Things or M2M/IoT, payment and other industries.

Hermes Cargo - offered by its Hermes Logistics Technologies Ltd. subsidiary, the Hermes Air Cargo Management System is a proprietary, state-of-the-art, packaged software solution for managing air cargo ground handling. The company's Hermes Solution covers all aspects of cargo handling, from physical handling and cargo documentation through customs, seamless EDI communications, dangerous goods and special handling, tracking and tracing, security and billing. Customers benefit through faster processing and more accurate billing, reporting and ultimately enhanced revenue. The Hermes Solution is delivered on a licensed or fully hosted basis. Hermes recently supplemented its offering with the Hermes Business Intelligence (HBI) solution, adding unprecedented data analysis capabilities and management-decision support tools.

HR Pulse - offered by its Pilat NAI, Inc. and Pilat Europe Ltd. subsidiaries, Pulse (now in its 10th release) is a proprietary tool for the creation of customizable HCM solutions quickly and affordably. It has been used by Pilat to create products, such as Pilat Frist and Pilat Professional, that provide 'out of the box' SaaS solutions for organizations that implement Continuous Performance and/or Talent Management.

MBS Solution - offered by its Complete Business Solutions Ltd. subsidiary, MBS Solution is a proprietary comprehensive core system for managing TV broadcast channels.

Nativ - offered by its Menarva Ltd. subsidiary, Nativ is a proprietary comprehensive core system for management of rehabilitation centers.

Mobisale - offered by its Mobisoft Ltd. subsidiary, Mobisale is a proprietary comprehensive core system for sales and distribution field activities for consumer goods manufacturers and wholesalers.

Magic Software's Professional Software and IT Services

Magic Software's software professional services offerings include a vast portfolio of professional services in the areas of infrastructure design and delivery, application development, technology consulting planning and implementation services, support services, DevOps (Development & Operations), Mobile, Big Data and Analytical BI, M/F, cloud computing for deployment of highly available and massively-scalable applications and APIs and supplemental IT outsourcing services to a wide variety of companies, including Fortune 1000 companies, all in accordance with the professional expertise required, in each case allowing the company to create significant value for the company's clients in managing, streamlining, accelerating and making their businesses thrive. The talents the company provides generally supplement in-house capabilities of the company's customers. The company has extensive and proven experience with virtually all types of telecom infrastructure technologies in wireless and wire-line as well as in the areas of infrastructure design and delivery, application development, project management, technology planning and implementation services.

The company has substantial experience in end-to-end development of high-end software solutions, beginning with collection and analysis of system requirements, continuing with architecture specifications and setup, to software implementation, component integration and testing. From concept to implementation, from application of the ideas of startups requiring the early development of an application or a device, to somewhat larger, more established enterprises, vendors or system houses who need the company's team of experts to take full responsibility for the development of their systems and products. With the company's ability to draw on its pool of resources, consisted of hundreds of highly trained, skilled, educated and flexible engineers, the company adheres to timelines and budget and work in full transparency with the company's customers every step of the way to create a tailor-made and cost-effective solution to answer all of the company's customers' unique needs.

The company's IT services subsidiaries consist of Coretech Consulting Group LLC; Fusion Solutions LLC; Xsell Resources Inc.; AllStates Consulting Services LLC; Futurewave Systems, Inc.; NetEffects, Inc.; The GoodKind Group LLC; CommIT Group; Comblack Ltd; Infinigy Solutions; Shavit Software Ltd.; OnTarget Group Inc; Aptonet Inc; Stockell information systems; EnableIT LLC; and Appush Ltd (formerly Vidstart Ltd).

Magic Software's Partnerships and Alliances

Magic Software continues to build on its existing strategic partnerships that include partnerships with Oracle, JD Edwards, SAP, Salesforce.com, Microsoft, IBM and SugarCRM to enhance its mobile, integration and cloud offerings.

In March 2018, following an extension of its partnership with Salesforce, Magic Software included new features in its Magic xpi 4.7 to make the integration between Salesforce and other systems even easier. By collaborating with Salesforce, the company is significantly expanding the company's partners' network and maximizing the company's service offering to customers around the world, enabling them to better serve their customers via all channels by connecting to back-office ERP and finance applications, and streamlining business processes across numerous applications. The company has reached the status of Salesforce Premier ISV partner, showing the company's high competence expert level, ensuring that all of the company's customers enterprise software is faultlessly integrated.

Magic Software is an Oracle Platinum Partner holding an Oracle Validated Integration status, a SAP Channel Gold Partner holding SAP Certified Integration status, an IBM Server Proven, and a SYSPRO business partner, among others. It appears on the Salesforce AppExchange and are a featured partner on SugarCRM's Sugar Exchange, marketplaces for apps provided by partners. The company continues to update and strengthen its relationships with these major IT partners by attending partner events and by updating and certifying the company's Magic xpi connectors for each specific ecosystem.

In December 2018, Magic Software achieved Microsoft Gold Competency and has maintained this elite status since then. Gold Competency is Microsoft's highest level of partner certification reserved for the top one percent of Microsoft elite partners worldwide who have demonstrated expertise and proven skills with a particular Microsoft technology or service. In addition to that, the company earned the Co-Sell Ready Status as a member in the Microsoft One Commercial Partner (OCP) Program. Magic xpi, which maps data, automates business processes and connects apps, databases, APIs with built-in Microsoft connectors, and Magic FactoryEye, a 100% cloud-native, microservices-based integration platform are available on the Microsoft AppSource app store and are listed on the Microsoft Azure Marketplace.

In May 2020, Magic Software's CommIT Group achieved AmazonAWS SaaS Competency status. AWS SaaS Competency is designated to help customers find top AWS consulting partners with deep specialization and experience in designing and building software-as-a-service solutions on AWS. Organizations are interested in software that is easy to use, implement, and operate. They are looking to reduce time-to-value and obtain access to innovative product features and flexible software procurement on a consumption or contractual basis. AWS SaaS Competency Partners follow Amazon Web Services (AWS) best practices for designing and building SaaS solutions through their professional services practices. To qualify for the AWS SaaS Competency designation, organizations have undergone rigorous technical validation by AWS Partner Solutions Architects and demonstrated proven customer success. In recent years, CommIT Group has successfully led, developed and produced many SaaS solutions on AWS for companies across many business sectors, including high-tech and startups, industrial and retail, and insurance and finance. CommIT Group 's unique, flexible R&D model, which provides complete flexibility in determining the mix of experts, allows for full control of budgets and schedules throughout the development project. In this framework, the company accompanies its clients in their digital journey and in their entry into the SaaS world, providing design and build services for application environments or migration services for applications from existing models to cloud SaaS models. These processes require software architecture, construction, and software development from both Digital and SaaS, all of which take into account performance aspects, information security, scalability, infrastructure monitoring, customer experience and billing. Achieving AWS SaaS Competency status allows the company to expand its business offering and even accompany the organizational change for customers who are in the process of transitioning to SaaS.

Magic Software's Software Solutions

Magic Software's software solutions enable enterprises to accelerate the planning, development, deployment and integration of on-premise, mobile and cloud business applications that can be rapidly customized to meet current and future needs. Its software solutions and complementary professional services empower customers to dramatically improve their business performance and return on investment by enabling the cost-effective and rapid delivery, integration and mobilization of business applications, systems and databases. Its technology and solutions are especially in demand when time-to-market considerations are critical, budgets are tight, and integration is required with multiple platforms or applications, databases or existing systems and business processes, as well as for RIA and SaaS applications. Its technology also provides the option to deploy the company's software capabilities in the cloud, hosted in a web services cloud computing environment. These capabilities provide organizations with a faster deployment path and lower total cost of ownership. Magic Software's technology also allows developers to stage multiple applications before going live in production.

Development communities are facing high complexity, cost and extended pay-back periods in order to deliver cloud, RIAs, mobile and SaaS applications. Magic xpa, AppBuilder, Magic SmartUX, Magic xpi, Magic FactoryEye, and Magic's Data Management and Analytics platformall provide MSPs with the ability to rapidly build integrated applications in a more productive manner, deploy them in multiple modes and architectures as needed, lower IT maintenance costs and speed time-to-market. Magic Software's solutions are comprehensive and industry proven. These technologies can be applied to the entire software development market, from the implementation of micro-vertical solutions, through tactical application modernization and process automation solutions, to enterprise spanning service-oriented architecture, or SOA, migrations and composite applications initiatives. Unlike most competing platforms, Magic Software offers a coherent and unified toolset based on the same proven metadata driven and rules-based declarative technology. Its low-code, metadata platforms consist of pre-compiled and pre-written technical and administrative functions, which are essentially ready-made business application coding that enables developers to bypass the intensive technical code-writing stage of application development and integration, concentrate on building the correct logic for their apps and move quickly and efficiently to deployment. Through the use of metadata-driven platforms, such as Magic xpa, AppBuilder, Magic SmartUX, Magic xpi, Magic's Data Management and Analytics platformand Magic FactoryEye, software vendors and enterprise customers can experience unprecedented cost savings through fast and easy implementation and reduced project risk.

Magic Software's software technology solutions include application platforms for developing and deploying specialized and high-end large-scale business applications and integration platforms that allow the integration and interoperability of diverse solutions, applications and systems in a quick and efficient manner. These solutions enable the company's customers to improve their business performance and return on investment by supporting the affordable and rapid delivery and integration of business applications, systems and databases. Using the company's software solutions, enterprises and ISVs can accelerate time-to-market by rapidly building integrated solutions, deploying them in multiple environments while leveraging existing IT resources. In addition, the company's solutions are scalable and platform-agnostic, enabling the company's customers to build solutions by specifying their business logic requirements in a commonly used language rather than in computer code, and to benefit from seamless platform upgrades and cross-platform functionality without the need to re-write applications. its technology also enables future-proof protection and supports current market trends, such as the development of mobile applications that can be deployed on a variety of smartphones and tablets, and cloud environments. In addition, the company offers a variety of vertical-targeted products that are focused on the needs and requirements of specific growing markets. Certain of these products were developed utilizing the company's application development platform.

Magic Software sells its solutions globally through its own direct sales representatives and offices and through a broad sales distribution network, including independent country distributors, independent service vendors that use the company's technology to develop and sell solutions to their customers, and system integrators. Magic Software also offers software maintenance, support, training, and consulting services in connection with the company's products, thus aiding the successful implementation of projects and assuring successful operation of the platforms once installed. The company sells its integration solutions to customers using specific popular software applications, such as SAP, Salesforce.com, IBM i (AS/400), Oracle JD Edwards, Microsoft SharePoint, Microsoft Dynamics, SugarCRM and other eco-systems. As such, the company enjoys a well-diversified client base across geographies and industries, including oil & gas companies, telecommunications groups, financial institutions, healthcare providers, industrial companies, public institutions and international agencies.

The underlying principles and purpose of the company's technology are to provide:

Simplicity - the use of code-free/low code development tools instead of hard coding and multiple programming languages to solve critical and complex challenges;

Business focus - the use of pre-compiled business logic and components eliminates repetitive, low level technical and coding tasks;

Comprehensiveness - the use of a comprehensive development and deployment platform offers a full end-to-end development, deployment and integration capability;

Automation of mundane tasks - to accelerate development and maintenance and reduce risk; and

Interoperability - to support business logic across multiple hardware and software platforms, operating systems and geographies.

Magic Software offers three complementary application platforms that address the wide spectrum of composite applications, Magic xpa, Magic SmartUX and AppBuilder. The company's Magic xpi integration platform, Magic FactoryEye and Magic's Data Management and Analytics platform deliver fast and simple integration and orchestration of business processes and applications. The company's customers operate in a wide variety of industries, including financial services, life sciences, government, telecommunications, energy and manufacturing.

Magic xpa Application Platform

Magic xpa Application Platform, the company's metadata driven application platform, provides a simple, low code and cost-effective development and deployment environment that lets organizations and MSPs quickly create user-friendly, enterprise-grade, multi-channel mobile and desktop business app that employ the latest advanced functionalities and technologies. The Magic xpa Application Platform, formerly named uniPaaS, was first released in 2008 and is an evolution of the company's original eDeveloper product, a graphical, rules-based and event-driven framework that offered a pre-compiled engine for database business tasks and a wide variety of generic runtime services and functions which was released in 2001.

Magic Software has continually enhanced the company's Magic xpa application platform to respond to major market trends such as the growing demand for cloud-based offerings, including Rich Internet Applications (RIA), mobile applications and SaaS. Accordingly, the company has added new functionalities and extensions to the company's application platform, with the objective of enabling the development of RIA, SaaS, mobile and cloud-enabled applications. SaaS is a business and technical model for delivering software applications, similar to a phone or cable TV model, in which the software applications are installed and hosted in dedicated data centers and users subscribe to these centers and use the applications over an internet connection. This model requires the ability to deliver RIA. Magic xpa is a comprehensive RIA platform. It uses a single development paradigm that handles all ends of the application development and deployment process, including client and server partitioning and the inter-communicating layers.

Magic xpa offers customers the power to choose how they deploy their applications, whether full client or web; on-premise or on-demand; in the cloud or behind the corporate firewall; software or mobile or SaaS; global or local. The company's Magic xpa Application Platform complies with event driven and service oriented architectural principles. By offering technology transparency, this product allows customers to focus on their business requirements rather than technological means. The Magic xpa single development paradigm significantly reduces the time and costs associated with the development and deployment of cloud-based applications, including RIAs, mobile and SaaS. In addition, application owners can leverage their initial investment when moving from full client mode to cloud mode, and modify these choices as the situation requires. Enterprises can use cloud-based Magic xpa applications in a SaaS model and still maintain their databases in the privacy of their own data centers. It also supports most hardware and operating system environments, such as Windows, Unix, Linux and AS/400, as well as multiple databases and is interoperable with. NET and Java technologies.

Magic xpa can be applied to the full range of software development, from the implementation of micro-vertical solutions, through tactical application modernization and process automation solutions, to enterprise spanning SOA migrations and composite applications initiatives. Unlike most competing platforms, the company offers a coherent and unified toolset based on the same proven metadata driven and rules based declarative technology, resulting in increased cost savings through fast and easy implementation and reduced project risk.

Magic xpa enables organizations to differentiate themselves from their competition through software-enabled digital transformation. With the company's platform, organizations can rapidly and easily design, build and implement powerful, enterprise-grade custom applications through the company's intuitive, visual interface, with little or no coding required. The company's Solution ensures that applications developed on the company's platform can be immediately and natively deployed across a full range of mobile and desktop devices with no additional customization, including desktop web browsers, tablets and mobile phones. The company also enables organizations to easily modify and enhance applications and automatically disseminate these updates across device types to ensure that all users benefit from the most up-to-date functionality.

Magic Software's approach to digital transformation goes beyond simply enabling organizations to build custom applications fast. The company empowers decision makers to reimagine their products, services, processes and customer interactions with software by removing much of the complexity and many of the challenges associated with traditional approaches to software development. Because the company makes application development easy, organizations can build specific and competitively differentiated functionality into applications to deliver enhanced user experiences and streamlined business operations.

In February 2018, Magic Software released Magic xpa 3.3 with a more seamless and easier integration with Java, similar to the already existing integration with. NET, making the Magic xpa platform even more robust. Along with that, Magic Software provided a new WS provider mechanism, built on Apache Axis2, enhancing the company's WCF based capabilities.

In April 2018 and for the third consecutive year, Magic Software's Magic xpa application development platform gained top market share in license sales in the Japanese market. According to the 'Market Research for Next Generation Extra-Rapid Development Tools in 2018' published by MIC Research Institute Ltd., the Magic xpa Application Platform grew 2% achieving a 41% share of the Japanese market.

In August 2018, Magic Software released Magic xpa 4.0 with its new Angular-based Web application framework that provides developers and Angular developers with the power to develop device-agnostic and feature-packed Web applications. Magic xpa 4.0 decouples the business logic from the presentation of the apps providing developers with the flexibility to use the Angular open-source platform with industry-standard state-of-the-art technologies, including HTML5, CSS, and JavaScript for designer-quality screens, while benefiting from the productivity, security, and scalability capabilities provided by the company's low-code development platform.

In addition, Magic Software further modernized its Integrated Development Environment (IDE) by moving toward a full-fledged Visual Studio-based studio, offering the company's users an even more intuitive and user-friendly experience.

During 2018, Magic xpa was listed in Gartner's Market Guide for Application Platforms report. In addition, Magic xpa was listed in the Forrester Wave for Mobile Low-Code Development Platforms.

Magic Software 2019 roadmap includes the release of a 64-bit edition of Magic xpa, featuring a full 64-bit runtime engine for Windows and Linux.

In 2020, Magic Software significantly enhanced its new Angular based web client capabilities, invested more resources in the overall product stability, provided GIT version control capability as an integral part of expanding its CI/CD overall capabilities, as well as enhanced its compare and merge functionality under its xpa 4.7 release.

In 2021 and during 2022, Magic Software moved its Magic xpa platform to be a cloud native platform deployed by a dockers container, thereby opening the door to its customer to take its applications to be full SaaS products.

AppBuilder Application Platform

AppBuilder, a platform the company acquired in December 2011, is a proprietary development environment used for managing, maintaining and reusing complicated applications needed by large businesses. It provides the infrastructure for enterprises worldwide, across several industries, with applications running millions of transactions daily on legacy systems. Enterprises using AppBuilder can build, deploy and maintain large-scale custom-built business applications for years without being dependent on any particular technology. The AppBuilder deployment environments include IBM mainframe, Unix, Linux and Windows. AppBuilder is intended to increase productivity and agility in the creation and deployment of enterprise class computing.

AppBuilder follows the 4GL development paradigm to help enterprises focus on the business needs and definition and overlook technical hurdles. AppBuilder developers define the business roles and prior to deployment the code is generated from the development environment to the required run time environment. Several large MSPs have utilized AppBuilder to build state of the art applications that are deployed through many large customers.

AppBuilder implements a model driven architecture approach to application development. It provides the ability to design an application at the business modeling level and generate forward to an application. AppBuilder has a platform-independent, business-rules language that enables generation to multiple platforms. It is possible to generate the client part of an application as Java and the server part as COBOL. As businesses change, the server part can be generated as Java without changing the application logic. Only a simple configuration option needs to be changed.

AppBuilder contains everything a development environment needs to create any type of simple or complex business application with platform-independent functionality, including system administration security controls for scope and permissions; migration, testing, and deployment functions; architecture-independent development; an integrated toolset for designing, developing, and deploying applications; object-based components managed from host, server, or client repositories; support for Java/J2EE, COBOL, C#, and C programming languages; an efficient, cross-platform code generation facility; ready-to-use business logic and libraries; a remote prepare facility for mainframe development; multiple language user interface support; and DBCS support.

Magic xpi Integration Platform

The company expects enterprises will require new technologies purpose-built to connect, analyze, manage, and normalize data anywhere it resides using modern, cloud-native architectures that can seamlessly be deployed in any IT environment.

Magic Software's Magic xpi integration platform (an evolution of its original and formerly branded iBOLT platform, launched in 2003) is a graphical, wizard-based code-free solution delivering fast and simple integration and orchestration of business processes and applications. Magic xpi allows businesses to more easily view, access, and leverage their mission-critical information, delivering true enterprise application integration, or EAI, business process management, or BPM, and SOA infrastructure. Increasing the usability and life span of existing legacy and other IT systems, Magic xpi allows fast EAI, development and customization of diverse applications, systems and databases, assuring rapid return on invested capital and time-to-market, increased profitability and customer satisfaction.

Magic xpi allows the integration and interoperability of diverse solutions, including legacy applications, in a quick and efficient manner. In January 2010, the company released Magic xpi 3.2 and since then the company has continued to develop the Magic xpi channel. The company entered into agreements with additional system integrators, consultancies and service providers, who acquired Magic xpi skills and offer Magic xpi licenses and related services to their customers. The company also offers special editions of Magic xpi with optimized and certified connectors for specific enterprise application vendor ecosystems, such as SAP, Oracle JD Edwards, Microsoft SharePoint and Salesforce.com. These special editions contain specific features and pricing tailored for these market sectors.

Data engineers, Extract-Transform-Load (ETL) developers, and citizen integrators have the ability to use the company's platform to ingest, transform and integrate data spanning departmental to enterprise scale workloads. These workloads include diverse and distributed data sources in multi-cloud, hybrid environments. The breadth and depth of the company's data integration capabilities accelerate the aggregation and processing of data to ready it for analytics, data science and enterprise reporting initiatives. Leveraging a simple graphical design experience, users can develop workloads across ETL, Extract-Load-Transform (ELT), real-time and streaming data integration patterns. The company's platform is designed to integrate structured and unstructured data across on-premises and cloud-native applications, databases, business intelligence tools, data modeling tools, data lakes, data warehouses, mainframes, messaging systems, file systems and IoT devices. The company's data-lake architecture allows data stewards and business analysts to create an authoritative single-source view of all business-critical data from internal and external sources across multiple data domains, including customers, locations, assets, and employees and many other domain types.

Magic Software's heritage as a veteran player in the integration market provides it with a differentiated understanding and ability to automate complex processes, and Magic Software has incorporated that expertise into the company's platform to enable the development of powerful business software. Magic xpi can leverage a complete stack of automation technologies, applying the right automation approach for each specific use case.

In March 2018, Magic Software released Magic xpi version 4.7 with a new OData Provider connector, Active Directory Federation Services (ADFS) support for the SharePoint Online (MOSS) connector, ability to write new connectors based on Magic xpa Application Platform's runtime technology and multiple features to improve programming productivity, such as visual indicators of data flow status and an enhanced monitor to provide an even more accurate bird's eye view of all running projects.

In October 2018, Magic Software announced that Magic xpi Integration Platform 4 achieved SAP-certified integration with SAP S/4HANA, enabling the company's customers to optimize business processes through automation across leading ERP, CRM, finance, and other enterprise systems using a single platform.

In February 2019, Magic Software released Magic xpi version 4.9 with a new REST client connector, ODATA connector enhancements, inherent UPSERT support in the data mapper, and built-in cloud support.

In August 2019, Magic Software released Magic xpi version 4.11, enabling access to remote connectors residing at another site, without the need for a VPN (aka 'Local Agent' capability). In addition, in the beginning of 2020 the company released the major released Magic xpi 4.12, which includes 64-bit support for the company's Run-Time engine as-well as integration with one of the industry's API management solutions suites. During 2019, the company also released additional features pursuant to customer requests.

In 2020, Magic Software enhanced the above Local Agent capability with more functionality, added additional connectors (e.g., OPC for manufacturing) and invested more resources in the overall product stability. In addition, Magic Software has added various features to the platform to expand its product offering, per customer requests and extended its offering adding EDI capabilities.

In 2021, Magic Software enhanced Magic xpi Local Agent capabilities with more functionalities, added additional connectors (e.g., OPC for manufacturing) and invested more resources in the overall product stability. In addition, Magic Software moved its Magic xpi platform to be a cloud native platform deployed by dockers container.

In 2022, Magic Software continued to expand its product offering with additional features, per customer requests. In March 2023 Magic Software launched Magic xpi Cloud Native, allowing shifting xpi integration projects to the cloud smoothly. The xpi Cloud Native environment configurations based on Kubernetes, focuses on scalability, security, and resilience. The deployment process is made effortless with the company's new 'Cloud Manager'. Cloud Manager interface hides all the complexities of cloud deployment and clustering and performs all the heavy lifting through easy to use and intuitive set of Rest API's. These APIs also bring agility and efficiency to organizations CI/CD practices via 'Continuous Deployment' capabilities.

Magic SmartUX

Magic SmartUX, a platform Magic Software acquired in April 2019, is a low-code development platform for mobilizing and modernizing enterprise business application designed for citizen to professional developers to rapidly design, build, analyze, and run cross-platform mobile business applications.

The Magic SmartUX platform addresses the three biggest challenges enterprises are facing in the road to Digital Transformation:

Multi-platform: end client devices are abundant and diverse, the company provides an omni-channel solution.

Many Systems of Record: over the years enterprise adopted (home grown and third party) solutions that scattered the business flow over many different system, Magic SmartUX enable the enterprise to expose complex business flows to modern technology with now changes and overhead to the existing working applications.

Talent Gap: Mobile and integration are the hardest skillsets for IT orgs to find, with the Magic SmartUX platform addressing Citizens Developers, the company allows any intern tech savvy individual to deliver complex and robust Mobile business application.

FactoryEye

On May 2019, Magic Software launched the release of FactoryEye, a proprietary high performance, low-code, flexible, cloud platform built specially for manufacturers based on a modern architecture enabling advanced manufacturing and organizational intelligence, real-time virtualizations and actionable insights for cross- organizational effectiveness and increased bottom line. Magic Software has hundreds of manufacturing customers, and drew on over 35 years of manufacturing experience to develop FactoryEye.

The product's intuitive and user-friendly workspace empower manufacturers by providing all the analysis the report they need in order to make faster and smarter decisions based on real time data and analytics. This translates into improved productivity, faster delivery times, and better control over the manufacturing processes, leading to increased customer satisfaction and higher profit margins. FactoryEye offers dozens of prebuilt connectors to a range of enterprise applications and MRP systems, such as SAP, JD Edwards, and Infor, as well as MES, CRM, and PLM systems. FactoryEye collects real-time data from existing machinery, operational and organizational systems and transforms it into actionable intelligence for immediate results and continuous improvement in the manufacturing process and operational efficiency. The solution brings the benefits of Industry 4.0 connectivity to mid-sized manufacturers in several industry verticals, including automotive parts, food & beverage, medical devices, metal processing, packaging, plastics & rubber specialty manufacturing and more.

The addition of FactoryEye to Magic Software's software portfolio allows Magic Software to provide to its new and existing manufacturing clients, with a comprehensive Industry 4.0 digital transformation solution and aligns with Magic Software strategy of enhancing its portfolio with enterprise grade technologies.

In addition to offering a dynamic cloud-based software solution, FactoryEye manufacturing consultants work with customers to harmonize their systems and fit the right tools for their needs. Consultants analyze business processes for what is working, formulate a plan to add what is missing from existing systems and create sprints to deliver immediate results. A dynamic cycle of data collection and analysis allows for continuous improvement and flexibility in the optimization process.

Magic Software has built a new website for FactoryEye, as well as blogs, whitepapers, e-books public relations activities, exhibitions and events, round tables and on-line campaigns , all in the purpose of increasing the awareness of this new offering and benefits for mid-sized manufacturers.

FactoryEye brings the benefits of Industry 4.0 to mid-sized manufacturing companies, with an easy, affordable, and flexible approach that does not require changing existing systems and infrastructure. This Industry 4.0 solution captures vast amounts of production data, transforms it into actionable intelligence, and empowers workers, managers and executives to make informed decisions in real-time.

In addition, the company continues to market Magic Software's application and integration products. These products continue to provide value and convenience for the company's customers as low code options to integrate their disparate systems.

Magic Software Vertical software solutions

Clicks

Magic Software Roshtov subsidiary has approximately three decades of proven experience based on its proprietary comprehensive core software solution for medical record information management systems, using in the design and management of patient-file for managed care and large-scale healthcare providers. The platform, which can be tailor-made to the specific needs of the healthcare provider, is connected to the clinical, administrative and financial data base system, residing at the provider's central computer, and allows immediate analysis of complex data with potentially real-time feedback to meet the specific needs of physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals and consumers.

All of the company's clients that buy or subscribe to the company's Clicks software solution also enter into software support agreements with the company for maintenance and support of their medical record management systems. In addition to immediate software support in the event of problems, these agreements allow clients to access new releases covered by support agreements. In addition, each client has 12-hour access, six days a week (6 hours on Friday) to the applicable call-center support teams.

The company employs a team of 35 research and development specialists that together with the company's clients create a future where the health care system works to improve the well-being of individuals and communities. Roshtov's proven ability to innovate has led to be an industry leading architectures and a breadth and depth of solutions and services.

Leap

The company implements revenue management and monetization solutions in mobile, wireline, broadband, MVNO/E, payments, e-commerce, M2M / Internet of Things, mobile money, cable, cloud and content markets under the brand name of Leap. The company's Leap solutions lower the total cost of ownership (TCO) for telecom, content and payment service providers.

FTS works with telecommunications, content and payment service providers globally to help them manage complex transactions and relationships with greater flexibility and independence. Analyzing transactions from a business standpoint, FTS offers end-to-end and add-on telecom billing, charging, policy control and payments solutions to customers worldwide, and services both growing and major providers.

FTS targets mid to lower level tier service providers, supporting their BSS needs with end-to-end, turnkey billing and other BSS projects. In addition, FTS offers upper-tiers of service providers with BSS and monetization solutions for specific needs, including policy control and charging solutions, M2M billing, billing for content services, MVNE/MVNO billing, mobile money software solutions, payment and mobile financial services solutions and others.

The company's Leap offering is consisted of:

Leap BCCF (Business Control and Charging Function) - a proprietary packaged software solution which serves as the underlying foundation of the company's Leap products and solutions. Leap BCCF enables service providers to handle the aspects of event processing, from defining the system's business logic, through importing events and formatting, to charging and executing business rules. With Leap BCCF, new services are deployed on the fly, and strategic business rules are formulated more easily, ensuring real-time responses to both service and customer-related events and providing a baseline for policy control.

Leap Billing 6.3 - a convergent charging, billing and customer care solution that realizes substantial reductions in OPEX and CAPEX while increasing customer satisfaction and retention. Leap Billing software's flexibility and ease of use enables the service providers' billing platform to work more at the speed of marketing by offering new marketing plans or services in a rapid time-to-market.

Leap Policy Control - Leap Policy Control is an integrated charging and policy control solution (a full PCC solution based on PCRF & online/offline charging). Compliant with the 3GPP's Diameter policy control standard, Leap Policy Control provides traffic and subscriber management strategies. Leap Policy Control gives operators the power to monitor usage in real time and, using fully configurable business rules, define how they manage network resources, applications, and subscribers - in real time - while generating revenue from personalized mobile applications, content and services. Leap Policy Control can be implemented as a stand-alone solution or as part of a larger BSS project implementation.

FTS Express - FTS express is an all-in-one software appliance for online charging, billing, AAA, balance management, customer care, policy control and interconnect, designed for entry-level operations of MVNOs, LTE, VoIP, ISP, broadband, IPTV and more.

The following is a sample of the monetization solutions offered by FTS: end-to-end, turnkey billing and customer care solutions; convergent, online charging and billing; policy control and charging; MVNO/E billing; billing for content; interconnect billing; M2M / IoT billing; broadband and multi-play billing; mobile money solutions; e-commerce and m-commerce solutions; payments and mobile payments solutions; smart revenue sharing and partner management solutions; and billing service bureau.

FTS's solutions are delivered via cloud, on-premises or in a fully managed-services mode and are backed by the company's Israel and Bulgaria-based experienced professional services support team.

HR Pulse

HR Pulse is a proprietary platform that creates and customizes software applications for HCM, with the goal to combine technology with effective processes, to facilitate the collection, analysis and interpretation of quality data about people, their jobs and their performance, to enhance HCM decision making, resulting in increased organizational efficiency and effectiveness. HR Pulse addresses four distinct functional areas with the ability to also work as one consolidated system: performance and goal management; development management; talent management and succession planning; and compensation and merit review.

The company's offering includes customizable 'out of the box' HCM SaaS Solutions, such as Pilat Frist and Pilat Professional, that provides a menu of templates that can be used to affordably and expeditiously create customized HCM solutions for companies. The HR Pulse platform promotes the building and implementation of solutions that address broader business challenges as well. Such offerings include 360-degree feedback, employee surveys, leadership and management development, coaching and job evaluation.

Hermes Cargo

Hermes Air Cargo Management System is a proprietary, state-of-the-art, packaged software solution for managing air cargo ground handling. The company's Hermes Solution covers all aspects of cargo handling, from physical handling and cargo documentation through customs, seamless EDI communications, dangerous goods and special handling, tracking and tracing, security and billing. Over the last 10 years Hermes systems have been implemented in over 70 terminals on five continents, providing efficient and accurate handling of more than 5 million tons of freight annually. Customers benefit through faster processing and more accurate billing, reporting and ultimately enhanced revenue. Customers include independent ground handlers, airlines with a cargo arm, hubs belonging to an individual airline or those catering to a number of airlines transiting cargo to additional destinations. The Hermes Solution is delivered on a licensed or fully hosted basis.

Hermes systems are built with the specific needs of air cargo handlers and airlines in mind and are amongst the most versatile and sophisticated around. Hermes Solutions are focused on maximizing customer profits by streamlining ground handling processes and employing built-in best practices to reduce handling errors. Hermes team of cargo experts carry out a full business analysis, listen to the company's customers' requirements, suggest additional functionality and work with them to deliver an air cargo management solution that is streamlined around their processes and customized to their needs. Hermes works with everyone from smaller cargo handlers to large airlines all over the world and counts Menzies Aviation, WFS (FRA), Luxair, Etihad Airport Services and Frankfurt Cargo Services among their customers.

Nativ

Offered by Magic Software's Menarva Ltd subsidiary, Nativ is the leading system for efficient management of all types of rehabilitation centers. Selected by many of the largest rehabilitation and treatment centers in Israel, Nativ serves as a comprehensive solution, the largest and most specialized and equipped system in Israel, with all the capabilities required for operating all aspects of organizations engaged in rehabilitation and treatment. professional software and IT services. From rehabilitation programs to recruitment, Nativ enables control of all levels of rehabilitation bodies, including monitoring detailed rehabilitation plans, finance, collection, account management, recruitment, working hours, asset management, employment and medical files.

In addition, Nativ also contains many integral interfaces, including the Israel's Ministry of Health's suppliers portal, Israel's Ministry of Welfare's suppliers portal, rent transfers from the Israel's Ministry of Housing, accounting systems, payroll systems and more. The system produces a wide range of reports, including a receipt report from Israel's Ministry of Health, Welfare, Economy and Security, comprehensive and detailed information divided into units and services, a detailed living allowance report, patient report, condition report, emergency report and more.

Menarva has extensive experience gained in its work over the past 10 years with dozens of clients in Israel, an experience that has given rise to in-depth insights into the field of rehabilitation. Nativ is supported by the cloud and allows connection at any time and from any place for maximum efficiency, including a mobile application for continuous monitoring of field personnel in real time.

Nativ offers maximum survivability, due to the need for high reliability and comprehensive information security, all infrastructure is owned by Menarva and the system complies with all standards and guidelines of Israel's Privacy Protection Authority, including ISO standards: Standard 9001 for Quality Control, and Standard 27001 for information systems development.

Magic Software Product Development

Magic Software place considerable emphasis on research and development in order to improve and expand the functionality of the company's technologies and to develop new applications. The company's future success depends upon the company's ability to maintain the company's technological leadership, to enhance the company's existing products and to introduce new commercially viable products addressing the needs of the company's customers on a timely basis. The company also intends to support emerging technologies as they are introduced in the same way the company has supported new technologies in the past. The company will continue to devote a significant portion of the company's resources to research and development.

Magic Software Product-Related Services

Professional Services. Magic Software offer fee-based consulting services in connection with installation assurance, application audits and performance enhancement, application migration and application prototyping and design. Consulting services are aimed at generating both additional revenues and ensuring successful implementation of Magic xpa, Appbuilder, Magic xpi, Magic BusinessEye, SmartUX and FactoryEye projects through knowledge transfer. As part of management efforts to focus on license sales, the company's intention is to provide such activities as a complementary service to the company's customers and partners. The availability of effective consulting services is an important factor in achieving widespread market acceptance.

Services are offered as separately purchased add-on packages or as part of an overall software development and deployment technology framework. Over the last several years, the company has built upon its established global presence to form business alliances with the company's MSPs that use its technology to develop solutions for their customers, and distributors to deliver successful solutions in focused market sectors.

Maintenance. The company offers its customers annual maintenance contracts providing for unspecified upgrades and new versions and enhancements for the company's products on a when-and-if-available basis for an annual fee.

Customer Support. The company's in-house technical support group provides training and post-sale support.

The company offers online support systems for its MSPs and end users, providing them with the ability to instantaneously enter, confirm and track support requests through the Internet. These systems support MSPs and end-users worldwide. As part of this online support, the company offers Support Knowledge Base tools providing the full range of technical notes and other documentation, including technical papers, product information, and answers to most common customer queries and known issues that have already been reported.

Training. The company conducts formal and organized training on the company's development tools and packaged software solutions. The company develops courses, pertaining to the company's principal products and provide trainer and student guidebooks. Course materials are available both in traditional, classroom courses and as web-based training modules, which can be downloaded and studied at the student's own pace and location. The courses and course materials are designed to accelerate the learning process, using an intensive technical curriculum in an atmosphere conducive to productive training.

Magic Software IT Services

The core of the company's growth strategy is to serve as a one-stop-shop for the company's clients, helping them accelerate their digital transformation to enhance competitiveness, grow profitability and deliver sustainable stakeholder value. The company uses its deep industry and functional expertise to help clients capture more growth and solve a diverse set of business challenges, including identifying and developing new products and services; improving sales and customer experience; optimizing cost structures; maximizing human performance; harnessing data to improve decision-making; mitigating risk and enhancing security; shaping and delivering value from large-scale cloud migrations; and digitizing manufacturing and operations with smart, connected products and platforms.

The company helps its clients use technology to build their digital core to drive enterprise-wide transformation-such as moving them to the cloud, leveraging data and artificial intelligence, and embedding security and sustainability across the enterprise; by transforming their operations; and by accelerating their revenue growth. The company leverages its scale and global footprint, innovation capabilities, and strong ecosystem partnerships, together with the company's platforms, including to consistently deliver tangible value for the company's clients.

The company's IT services offerings consist of a variety of professional services that can be grouped into integration and other IT services. The company's integration services include:

Infrastructure analysis, design and delivery - management of complex, tailor-made projects and telecom infrastructure projects in wireless and wire-line, as well as IT consulting services, mainly for the defense and public sectors.

Technology consulting and implementation services - planning and execution of end-to-end, large-scale, complex solutions in networking, cyber security, command & control and high performance transaction systems.

Application development - The company specializes in end-to-end projects that feature an array of technologies, from development and implementation of concepts for startups to overall responsibility for the development of systems for large enterprises. The company's development services include development of on-premise, mobile and cloud applications, as well as Embedded and real time software development.

Magic Software is a talent- and innovation-led organization with approximately 4,161 people as of December 31, 2022, who serve the company's clients at any given time and whose skills and specialization are a significant source of competitive differentiation. With approximately 3,500 experts, the majority of whom are in the U.S, Israel and Europe; and hundreds of projects gone live in a variety of advanced technologies, the company has developed significant expertise and accumulated vast experience in integration projects. Such projects are typically more complex and require a high level of industry knowledge and highly skilled professionals. The company's integration expertise, as well as the company's global reach allows the company to deliver comprehensive, value added services to its customers. The company's IT services customers include major global telecoms, OEMs and engineering, furnish and installation service companies.

Strategic Consulting and Outsourcing Services

Magic Software provides a broad range of IT consulting services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, cloud computing, as well as supplemental outsourcing services. The company's wholly-owned subsidiaries, Fusion Solutions LLC, Xsell Resources Inc., Allstates Consulting Services LLC, Futurewave Systems, Inc., NetEffects, Inc, OnTarget Group, Inc, the CommIT Group, Infinigy Solutions LLC., The Goodkind Group LLC., EnableIT LLC, Comblack Ltd. and Shavit Software (2009) Ltd. provide advanced IT consulting and outsourcing services to a wide variety of companies including Fortune 1000 companies. The company's technical personnel generally supplement the in-house capabilities of the company's customers. The company's approach is to make available a broad range of technical personnel to meet the requirements of the company's customers rather than focusing on specific specialized areas. The company has extensive knowledge of and have worked with virtually all types of wireless and wireline telecom infrastructure technologies, as well as in the areas of infrastructure design and delivery, application development, project management, technology planning and implementation services. The company's consulting partners come from a wide range of industries, including finance, insurance, government, health care, logistics, manufacturing, media, retail and telecommunications. With an experienced team of recruiters in the telecom and IT areas and with a substantial and a growing database of telecom talent, the company can rapidly respond to a wide range of requirements with well qualified candidates. The company's customer list includes major global telecoms, OEMs and engineering, furnish and installation service companies. The company has built long-term relationships with the company's customers by providing expert telecom talent. The company provides individual consultants for contract and contract-to-hire assignments, as well as candidates for full time placement. In addition, the company configures teams of technical consultants for assigned projects at the company's customers' sites.

Michpal

Michpal, an Israeli registered company, is a developer of proprietary, on-premise payroll software solution for processing traditional payroll stubs to Israeli enterprises and payroll service providers. Michpal also developed several complementary modules such as attendance reporting, which are sold to its customers for additional fees. As of December 31, 2022, Michpal group served more than 8,000 customers, most of which are long-term customers.

As part of its payroll software solution, Michpal allows the preparation of employee paychecks, pay statements, supporting journals, summaries, and management reports and supports monthly and year-end regulatory and legislative payroll tax statements and other forms such as payroll social and income taxes, to its clients and their employees. In addition, Michpal enables its clients to connect to certain major enterprise resource planning, or ERP, applications with a certified connector.

In January 2018, Michpal released its new product and a new service line - 'Michpal Pension' and 'Michpal PensionPlus', respectively.

In November 2018, Michpal expanded its business through the acquisition of an 80% share interest in Effective Solutions Ltd., an Israeli company that provides consulting services in the fields of operational cost savings and procurement, as well as salary control and monitoring. The two companies have launched, in November 2018, a new service called 'Michpal YEDA', adopted by more than 50% of Michpal's customers, which allows clients to consult with team of experienced professionals, including employment attorneys and HR experts, with respect to payroll, labor, pensions, social security and employee income tax matters.

In January 2019, Michpal launched a supplement service line, 'Michpal 360', specially tailored for payroll service providers, allowing them to offer their clients to digitally report their employees' pension fund payments to their respective pension funds as required by law.

In November 2019, Michpal completed its second acquisition, acquiring all of the share capital of Unique Software Industries, an Israeli 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. The acquisition constituted an additional strategic move towards the expansion of the company's operations in the field of payroll and human resources management in which the company engages primarily through the Michpal group. Following the acquisition of Unique, the company started operating in the complementary field of outsourced payroll services, in which the company was not active and will allow the company to penetrate the field of services bureaus, by way of expanding the company's customer base.

In May 2020, Michpal completed the acquisition of 70% of the share capital of Liram Finance Software Ltd, a provider of proprietary integrated specialized management systems in the field of financial accounting, taxation and compliance, for accounting professionals (accountants and tax consultants), bookkeepers, controllers, and CFOs, giving its clients, for more than 35 years, complete confidence in their actions and decisions. Liram's solutions include specialized financial software solutions for preparation and reporting of financial statements, tax declarations, single-entry and double-entry bookkeeping. fixed asset management and depreciation calculations (under the brand name Ram-Nihul).

In 2021, Liram launched its 'RamPlus 360' platform, which is a modular platform offering a wide range of Liram's software solutions under one integrated working environment (on-premise or online). The new platform has already proven its efficacy during the COVID-19 crisis by enabling financial professionals to continue their work offsite and provide crucial real-time and personalized service to their clients even during the COVID-19 lockdown period, while saving time and preventing errors. The acquisition of Liram is a strategic step towards the expansion of Michpal's operations in the field of payroll, human resources and financial management and compliance.

In January 2022, Michpal launched its digital employee payroll portal - for employer and employee. The portal allows employees 24X7 access to view their pay stubs and payroll tax history, update their profile information, such as their mailing address, phone number, and email address, get notification directly from their employer on every monthly salary payment and extract administrative reports, including employee's monthly attendance reports.

In February 16, 2022, Michpal acquired 70% of the share capital of Formally Smart Form System Ltd. ('Formally'). Formally is an Israeli-based company and the creator of Formally Smart Form platform - a central server platform for managing knowledge and work processes, and for producing digital forms combined with a legally-binding eSignature technology allowing customers to create impressive documents in minutes and get them signed in a snap. Formally offers a variety of proprietary computerized and advanced tools for managing business processes trusted by Israel's largest financial, banking, and insurance enterprises. Its 'no-code' platform, allows to convert outdated forms into a digital process for any company freeing IT teams from ongoing maintenance issues and enables employees across the organization to deliver new digital products quickly and efficiently.

InSync

InSync is a U.S. based national supplier of employees to Vendor Management Systems (VMS) Workforce Management Program accounts. InSync specializes in providing professionals in the following areas: Accounting and Finance, Administrative, Customer Service, Clinical, Scientific and Healthcare, Engineering, Manufacturing and Operations, Human Resources, IT Technology, LI/MFG, and Marketing and Sales. With an experienced team of IT recruiters, InSync can rapidly respond to a wide range of requirements with well-qualified candidates. InSync supports more than 30 VMS program customers with employees in over 40 states.

Zap Group

Zap Group, is Israel's largest group of consumer websites which manages more than 20 leading consumer websites from diverse content worlds with a total of more than 17 million visits per month, including Zap Price Comparison website, Zap Yellow Pages (the largest business index in Israel) and Zap Rest (Israel's restaurants index). Zap Group, an Israeli private company, provides a variety of digital advertising solutions for its customers (small and medium businesses in Israel) and an access to an E-commerce platform to allow them engage with their consumers. Zap Group serves over 400,000 listed businesses on its platforms; approximately 16,000 of them are paying customers.

The websites managed and offered by Zap Group offer consumers a user-friendly search experience with a variety of advanced tools, which enable them to make educated purchase decisions in the best and most informed way.

Digital Solutions

Zap Group provides a variety of digital advertising solutions for its customers (small and medium businesses in Israel) and an access to an E-commerce platform that allows them to engage with their consumers. Zap Group regularly seeks to develop attractive digital solutions, which it believes to have market potential for small and medium businesses and their end user. All of Zap Group's investments in this area have been proven, where the company can leverage the company's experience to enhance product positioning and increase market penetration. The company provides its management and technical and financial expertise, marketing experience to help bring these products to market.

E-commerce Solutions

Zap Group provides an E-commerce platform for approx. 1,500 large, medium and small businesses, which operates stores in Israel. The platform, both website and application, allow end users to compare prices of the various stores for over 1.2 million products in 650 categories. The platform provides to more than 120 million visiting end users annually, 300,000 reviews of stores and products and 5,000 quality guides (videos and articles), which allow them to engage through the platform directly with stores for the purchase of a certain product they looked at through the platform.

In 2021, Zap Group launched a new website for car sellers and buyers, which provides a marketplace where buyers can explore on one website various options for buying a second-hand car (B2C). The platform allows the buyer to compare prices, specs, financing, peripheral services, accessories and overall packages. The online, real-time supply availability enables transparency, and also provides the buyer an aggregated view of specific sellers and agencies, and direct contact with a large pool of sellers.

In December 2022, Zap Group concluded the acquisition of 51% of the outstanding share capital of N.C Marketing and Advertising Ltd. (also known as 'Safra digital marketing') and 51% of the outstanding share capital of Marcomit Ltd. ('Marcomit'). Safra digital marketing is an Israeli company specializing in social media services, including Facebook, Instagram and Tik-tok. Marcomit is an Israeli company specializing in digital branding for large enterprises, including advanced branding materials for media and digital advertising.

Digital Platforms

Zap Group provides digital advertising platforms and services through 18 websites for medium and small businesses in 1,600 business categories in Israel, including doctors, lawyers, and other service and product providers. The platform, both website and application allow end users to contact directly with the service provider. The platform provides to more than 50 million visiting end users annually, 200,000 reviews 2,000 quality guides (videos and articles), 300 price lists, and 700 forums with more than 1.5 million expert explanations.

Zap Group also provides its customers other digital services, such as Search Engine Marketing (Pay Per Click Google and Facebook campaigns) and Search Engine Optimization for their websites. In addition, Zap Group provides website design services, creation of new websites on various tools (ZAP-X), management of social media, online business cards (GMB), and big data services.

Restaurants and Events

Zap Group provides digital advertising platforms and services for more than 17,000 restaurants listed and provides services for social events. Approximately 2,500 of them are paying customers. The platform, both website and application allow end users to directly contact the restaurant for table ordering, ordering of delivery or take away, to post visit reviews or explore the restaurant menu, photo gallery and other content, such as articles, etc. The platform provides to more than 30 million visiting end users annually, approximately two million food deliveries, 200,000 reviews, 5,000 food and culinary articles (videos and articles), and more than 0.5 million push updates annually.

Other

Zap Group provides a digital advertising platform for domestic travel and hospitality businesses in Israel. The platform- both website and application- allows end users to order directly from the provider (hotel, guesthouse or attraction service provider). The platform provides access to approximately 1,200 vacation and leisure locations, and to millions of visiting end users annually.

Affiliated Company

TSG

TSG is a global high technology company engaged in high-end technical solutions for protecting the safety of national borders, improving data gathering mechanisms, and enhancing communications channels for military, homeland security and civilian organizations.

TSG operates primarily in the defense and homeland security arenas. The nature of military and homeland security actions in recent years, including low intensity conflicts and ongoing terrorist activities, as well as budgetary pressures to focus on leaner but more technically advanced forces, have caused a shift in the defense and homeland security priorities for many of TSG's major customers. As a result, TSG believes there is a continued demand in the areas of command, control, communications, computer and intelligence (C4I) systems, intelligence, surveillance and reconnaissance (ISR) systems, intelligence gathering systems, border and perimeter security systems, cyber-defense systems. There is also a continuing demand for cost effective logistic support and training and simulation services. TSG's synergistic approach of finding solutions that combine elements of its various activities positions it to meet evolving customer requirements in many of these areas.

TSG tailors and adapts its technologies, integration skills, market knowledge and operationally-proven systems to each customer's individual requirements in both existing and new platforms. By upgrading existing platforms with advanced technologies, TSG provides customers with cost-effective solutions, and its customers are able to improve their technological and operational capabilities within limited budgets.

TSG markets its systems and products either as a prime contractor or as a subcontractor to various governments and defense and homeland security contractors worldwide. In Israel, TSG sells its defense, intelligence and homeland security systems and products mainly to the IMOD, which procures all equipment for the Israeli Defense Force (IDF).

In 2022, TSG acquired 51% of the outstanding share capital of E.P.R. Systems Ltd. Headquartered in Israel, E.P.R has over 20 years of experience and serves more than 100 local authorities in Israel. E.P.R offers comprehensive software solutions for municipal institutions primarily to manage all their billing and collection operations for all types of revenues, including taxes, fees and levies and several innovative extension modules. Additionally, E.P.R offers a full scope of expert implementation, application management and hosting services, enabling municipal institutions to execute their digital and business strategies. In accordance with the purchase agreement, TSG may acquire additional 9% of the outstanding share capital of E.P.R. during the first 12 months following the closing based on the 51% closing date deal value. In January 2023, TSG exercise its right and acquired the additional 9% of the outstanding share capital of E.P.R.

TSG's offerings include:

Command & Control Solutions

TSG offers sophisticated and innovative command and control solutions that support military and civilian sectors on land, air and sea. TSG provides a variety of Command & Control solutions ranging from strategic battlefield management to tactical and special operations forces. TSG systems cover all echelons of management, from national and regional levels down to the operational and tactical levels. Its systems are field proven and used by military forces, security services and public safety organizations worldwide.

Intelligence, Surveillance and Knowledge Management Solutions

TSG Intelligence solutions for security agencies and defense forces meet the demand for accurate and timely intelligence, based on multiple sources and sensors. TSG unique technologies cover the entire life-cycle of intelligence from acquisition to fusion, analysis, distribution, target management and more. TSG's Knowledge Management solutions provide public sector bodies with the capacity to effectively manage their organizational data, support decision making and follow-up.

Telecommunication& IT Management Solutions

TSG has extensive experience in developing and integrating telecommunications and IT solutions and tools such as Operations Support Systems (OSS), Contact Centers, Back Office Optimization and Value-Added Services (VAS) that are tailored to meet the requirements of multiple applications. Leveraging deep know-how in telecommunications, TSG provides wide-ranging offering suitable for public and private sector organizations.

Cyber Security Solutions & Services

TSG provides cutting-edge security services and solutions to government and private sectors, including secure critical infrastructure and financial institutions in cyber space. TSG cyber solutions, Cyber Security Center (CSC), Security Training, Security Investigations and Security Engineering support the establishment of a safe, secure and reliable work environment and cover, among other things, Security Engineering, Digital Forensics, Computer emergency response teams (CERT), Mobile Security, and Training.

Homeland Security Solutions (HLS)

TSG's field proven homeland security solutions maximize safety and security while minimizing threats. TSG provide its clients with paramount technologies ranging from emergency management and Chemical, biological, radiological and nuclear defense (CBRN) systems, to rescue& special operations and smart and safe city solutions.

Supporting Tools

TSG offers a variety of supporting system and solutions, providing dynamic and customizable field proven applications for in the following verticals: facility management, recording and debriefing systems, trainers and simulators, and mapping engines.

Competition

Matrix's Competitive Landscape

Matrix's principal competitors in the domestic Israeli market are Israeli IT services companies and systems integrators such as: Hilan Ltd., Malam-Team, One-1, Kyndryl, Aman, the Elad Group, Yael, SQLink, Emet Computing, AllCloud, Emet, LogOn, Abra-it, and HMS. In addition, in recent years, large accounting and advisory firms such as Deloitte and E&Y have expanded their service portfolio to include managed services and consulting in the fields of BI, Cybersecurity, ERP and CRM. In some cases, Matrix competes with IBM, Accenture, Oracle and the large accounting and advisory accounting firms. Matrix's international competitors in the Israeli marketplace include Microsoft, IBM, HP and Oracle. The main competitors with respect to infrastructure solutions include One-1, Malam-Team and Emet Computing. With respect to cloud services, competitors include All Cloud, DoIT, Google, Microsoft and Amazon Web Services. Matrix competitors with respect to training are the training centers of the Technion, IITC, HackerU, Ness Technologies, SQLink and Sela.

Magic Software's Competitive Landscape

The company's main competitors fall into two categories: providers of custom software and customer software solutions that address, or are developed to address, some of the use cases that can be addressed by applications developed on the company's platform; and (2) providers of low-code development platforms, such as Microsoft, Salesforce.com, ServiceNow, OutSystems, Appien and Mendix.

Among the company's competitors are IBM, Informatica, TIBCO, MuleSoft, Jitterbit, Talend, Dell-Boomi, Scribe and Software AG. Companies, such as CA and IBM have tools that compete directly with AppBuilder.

Michpal's Competitive Landscape

With respect to Michpal, the market in which it operates is very fragmented and among its competitors in the Israeli market in which it operates are mainly Hilan, MalamTeam, Tamal, Synel, Oketz systems and others.

Seasonality

Even though not significantly reflected in the company's financial results, traditionally, the first and third quarters of the fiscal year (year ended December 2022) have tended to be slower quarters for some of the company's subsidiaries and its affiliated companies and the industries in which they operate. The first quarter usually reflects a decline following a highly active fourth quarter during which companies seek to complete transactions and projects and utilize budgets before the end of the fiscal year. The relatively slower third quarter reflects reduced activities during the summer months in many of the regions where the company's customers are located and also reflects the Jewish national holidays in Israel.

In addition, the company's quarterly results are influenced by the number of working days in each period in Israel. For example, during the Jewish holidays period (typically at the end of the third quarter and beginning of the fourth quarter or at the end of the first quarter and beginning of the second quarter), when the number of working days is lower, the company tends to see a decrease in its revenues.

Intellectual Property Rights

The company has registrations for the mark 'Sapiens' in the U.K., Benelux, Germany, France, Italy Switzerland, Israel, and the European Union.

Magic Software has obtained trademark registrations in South Africa, Canada, China, Israel, the Netherlands (Benelux), Switzerland, Thailand, Japan, the United Kingdom and the United States. The initial terms of the registration of its trademarks range from 10 to 20 years and are renewable thereafter. Magic Software's use and registration of its trademarks do not ensure that it would have superior rights to others that may have registered or used identical or related marks on related goods or services. Magic Software has registered a copyright for its software in the United States and Japan. In addition, it has registered copyrights for some of its manuals in the United States and has acquired an International Standard Book Number (ISBN) for some of its manuals. Magic Software's copyrights expire 70 years from date of first publication.

Regulatory Impact

Matrix's business is also affected by changes in regulations of the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Commodity Futures Trading Commission, the National Futures Association, the Federal Energy Regulatory Commission, with respect to requirements relating to Know Your Customer, Customer Identification Programs, Anti-Money Laundering and Fraud Prevention.

Several of the products sold by TSG for commercial aviation applications are subject to flight safety and airworthiness standards of the U.S. Federal Aviation Administration (FAA) and similar civil aviation authorities in Israel, Europe, and other countries.

Research and Development

The company's research and development expenses, net, were $72.1 million in 2022.

History

Formula Systems (1985) Ltd. was founded in 1985. The company was incorporated under the laws of the state of Israel in 1985.