Magic Software Enterprises Ltd. (MGIC)

[midastouch017]

Magic Announces Pricing of Offering of its Ordinary Shares

Friday 28 February 2014

OR YEHUDA, Israel, Feb. 28, 2014 /PRNewswire/ -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) (the "Company"), a global provider of mobile and cloud-enabled application development and business integration platforms, announced today that it has priced an underwritten offering of 6,000,000 of its ordinary shares, pursuant to its existing shelf registration statement. Pursuant to the offering, the Company is selling the shares at a price to the public of $8.50 per share. The Company has also granted to the underwriters for the offering an option to purchase from it up to an additional 900,000 of its ordinary shares to cover over-allotments in connection with the offering. The Company's largest shareholder, Formula Systems (1985) Ltd., has agreed to purchase 700,000 ordinary shares in this offering at the public offering price. Formula Systems will, following completion of this offering, own approximately 45.9% of our ordinary shares, assuming no exercise of the underwriters' option to purchase additional ordinary shares.