Magix Integration, one of the remaining components of now-defunct IT group MGX, which failed spectacularly early last decade, is being bought out by a US-listed technology company.
Nasdaq-listed Magic Software Enterprises is bolstering its SA presence by acquiring 51% of Magix. Terms have not been disclosed.
A second company, Magix Security, will be spun off Magix and will operate as an independent company. Magix Integration already represents Magic in SA.
Magic has the option of increasing its stake in Magix to 75% over the coming year. The increased stake depends on revenue targets set for Magix.
“Magic has also stated its intent to make acquisitions in our region and we will be actively involved in finding suitable acquisition targets,” says Chris Hills director and co-founder of Magix Integration.
Hills is a former CEO of MGX, the highest-profile SA business failure following the pricking of the dot-com bubble in 2001. — Staff reporter, TechCentral
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