3rd Jan 2008 07:00
Emblaze Ltd03 January 2008 Magic Software Announces Sale of AOD Subsidiary to Fortissimo Capital for $17M Ra'anana, Israel, January 03, 2008 - Emblaze Ltd. (LSE:BLZ) announces that MagicSoftware Enterprises Ltd. (NASDAQ: MGIC), a member of the Emblaze/Formula Groupand a leading provider of business integration and development technology,announced the sale of the entire share capital of its wholly owned subsidiary,Advanced Answers on Demand (AOD), to Fortissimo Capital for the sum of $17million in cash. The purchase price is payable in two installments that arepayable by the end of January 2008. AOD develops application software targeted at the long-term care industry,including retirement and continuing care facilities, home health andrehabilitation agencies. In addition, as part of the transaction, Magic Software has entered into a threeyears license agreement with AOD which will allow AOD to continue to resellMagic's portfolio of leading products. Magic expects to record a one-time capital gain of over $9M from the sale in thefourth quarter of 2007. Contribution to the Emblaze group is expected at approximately $2M in capitalgain. Guy Bernstein, CEO of the Emblaze Group, commented: "we are happy to close 2007with another successful transaction that is giving effect to our continuousefforts across all our group companies with the aim to streamline the activitiesand focus the companies on their core businesses. Following this transaction,Magic is much better positioned with over $30m in cash to dedicate resources toits strategic priorities and to focus on its core business of integration andapplication development platforms." NOTES TO EDITOR About Fortissimo Capital Fortissimo Capital is a special situations private equity fund investingprimarily in public and private technology companies that require a capitalinfusion to expand their business. Fortissimo Capital executes long terminvestments and seek to partner with management to facilitate growth andmaximize value. Fortissimo is backed by 15 financial institutions includinginsurance companies, banks and pension funds. For more information aboutFortissimo Capital, please visit www.ffcapital.com. About Magic Software Enterprises Magic Software Enterprises Ltd. (NASDAQ: MGIC) has been a leader in enterprise application development, deployment and integration technology for more than two decades. The company's service-oriented (SOA) platforms are used by companies worldwide to develop, maintain, and deploy both legacy and new business solutions, while integrating these applications across both internal and external, heterogeneous environments. Magic Software's platform-independent methodology lets companies achieve agility by quickly assembling composite applications, allowing programmers to create services and architects and business analysts to orchestrate and reuse these services to enable business processes. Through partnerships with industry leaders such as IBM and SAP and more than 2500 ISVs worldwide, Magic Software technology is used by more than 1.5 million customers around the globe. For more information on Magic Software Enterprises Ltd. and its products and services, visit www.magicsoftware.com. Magic Software is a subsidiary of the Formula Systems and Emblaze Group of companies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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