Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that the Company has obtained a NIS 120 million (approximately $31.5 million) loan from an Israeli institutional corporation. After taking the loan, the Company will have total cash of approximately $92.5 million (net cash of ~ $60 million). The proceeds from the loan will be used to support the growth of the Company's existing business and for potential acquisitions. The unsecured loan is payable in 7 equal annual payments with the final payment due on November 2, 2023 and bears a fixed interest rate of 2.60% per year (unlinked), payable in two semi-annual payments. The loan, which may be prepaid under certain circumstances, is subject to various customary financial covenants and a negative pledge.
"We are pleased to partner with a leading Israeli institution on this financing, taking advantage of the attractive rates that were offered," stated Asaf Berenstin, CFO of Magic Software Enterprises, Ltd. "Having already spent approximately $21 million this year on the acquisition of Roshtov Software Industries Ltd., this financing will give us the flexibility to further grow our digital transformation business and add value to our shareholders by enriching our solutions for mobile, integration, cloud and IoT, both organically and through additional acquisitions."
About Magic Software Enterprises Ltd.
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Stephanie Myara | PR Manager
Magic Software Enterprises
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SOURCE Magic Software Enterprises Ltd.