What Magic Software Enterprises does

Magic Software Enterprises, founded in 1983 and headquartered in Or Yehuda, Israel, is a global provider of low-code integration and application development platforms serving enterprise and mid-market customers across 50+ countries. Its core technology stack centers on Magic xpi, a code-free integration platform offering 100+ certified connectors and an in-memory middleware layer for cloud, on-premises, and hybrid deployments; Magic xpa, an Angular-based low-code application development platform; MagicTouch, a cloud-based data integration and analytics product with predictive insights; and FactoryEye, an Industry 4.0 smart manufacturing solution, supplemented by Magic EDI, Smart UX/PowWow Mobile, and managed cloud services. The company monetizes primarily through enterprise subscriptions and licensing, plus implementation and managed services delivered by direct field sales, certified system integrators (e.g., Prodware), and a strategic partner ecosystem spanning Microsoft, SAP, Oracle, Salesforce, IBM, and AWS. Magic Software has been a publicly traded subsidiary of Formula Systems (1985) Ltd. on Nasdaq and TASE under ticker MGIC; in February 2026 it completed a reverse triangular merger with Matrix IT Ltd., becoming a wholly owned private subsidiary of Matrix with a combined valuation of roughly $3.5–4B, while Magic reported FY2025 revenue of $626.3M, a 13% five-year CAGR, and a customer base exceeding 3,000 organizations across manufacturing, retail, healthcare, finance, education, and government verticals.

Name

Magic Software Enterprises

Legal name

Magic Software Enterprises Ltd.

Website

https://magicsoftware.com

Company type

Public

Founded year

1983

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Magic Software Enterprises is an Israel-based global provider of low-code integration and application development platforms (Magic xpi, Magic xpa, MagicTouch, FactoryEye) that connect enterprise systems, automate workflows, and modernize legacy environments for 3,000+ customers across 50+ countries, now operating as a private subsidiary of Matrix IT following its February 2026 merger.

Ownership category

akta.pro rank

Product category

Enterprise Integration & Low-Code Application Platforms

NAICS

Software Publishers (5132), Custom Computer Programming Services (541511), Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (51821)

SIC

Services-Prepackaged Software (7372), Services-Computer Programming Services (7371), Services-Computer Integrated Systems Design (7373)

akta.pro primary industry

Deployment, Automation & DevOps (build pipelines, contract deployment tools) (FSAPABAH)

akta.pro secondary industries

Smart Contract Frameworks & SDKs (developer kits, templates, standards) (FSAPABAB), Developer APIs & Node Access (RPC providers, node infrastructure APIs) (FSAPABAC)

Keywords

• Systems integration platform
• Low-code application development
• Enterprise software solutions
• Cloud data management
• Smart manufacturing software

Headquarters

HQ city

Or Yehuda

HQ country

Israel

HQ region

Middle East

Offices5 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Software Licensing and Subscriptions: Revenue from licensing Magic xpi integration platform, Magic xpa low-code development platform, MagicTouch cloud solutions, and FactoryEye smart manufacturing solutions. Primarily subscription-based with perpetual license options.
2. Professional Services: Implementation, consulting, and project management services to deploy Magic platforms. Includes managed cloud services, training, and technical support.
3. Cloud/SaaS Services: Cloud-native deployment options including Magic Cloud Service Operations with 24/7 monitoring, dedicated cloud architects, and managed services.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

Magic Software Enterprises develops and sells code-free integration and low-code application development platforms that connect enterprise business systems across cloud, on-premises, and hybrid deployments. Its portfolio includes the Magic xpi Integration Platform (with 100+ certified connectors), Magic xpa low-code application platform, MagicTouch cloud data management, and FactoryEye smart manufacturing solutions, sold primarily to enterprise customers with implementation and managed services.

Product overview

Magic Software Enterprises provides a comprehensive portfolio of integration and application development platforms. The core offerings include Magic xpi Integration Platform for system integration with 100+ pre-built connectors, Magic xpa for low-code application development, and MagicTouch for cloud-based data management and analytics. These platforms are complemented by industry-specific solutions such as FactoryEye for smart manufacturing (Industry 4.0) and Magic EDI for electronic data interchange. Additional capabilities include the Web Application Framework for Angular-based web apps, Smart UX (PowWow Mobile) for legacy modernization, and Magic Managed Cloud Services for cloud migration and operations. The products enable enterprises to achieve digital transformation through seamless integration, process automation, and rapid application development across cloud, on-premises, and hybrid environments.

Differentiator

Problem solved

Functional benefit

Brands

• Magic xpi: Code-free, low maintenance integration platform that integrates business systems on cloud, on-premises or in hybrid deployments
• Magic xpa
• MagicTouch
• FactoryEye
• Magic EDI Service Platform
• Smart UX / PowWow Mobile

Products and services

• Magic xpi Integration Platform Code-free integration platform with 100+ pre-built certified connectors enabling enterprises to connect cloud, on-premises, and hybrid business systems, automate workflows, and achieve full information accessibility.
• Magic xpa Low Code Business Application Platform Low-code rapid application development platform enabling creation of cross-platform, single-page business applications using Angular for rich user experiences; supports develop-once-deploy-anywhere model.
• MagicTouch Cloud-based low-code platform with a 3-layer architecture (Integration Platform, Managed Services, Data Hub with Analytics) for connecting systems, managing structured and unstructured data, secure access control, and real-time insights.
• FactoryEye Smart Manufacturing Industry 4.0 smart manufacturing solution providing holistic, real-time operational intelligence for production environments, supporting continuous improvement and data-driven decision making.
• Magic EDI Service Platform Electronic Data Interchange service platform enabling standardized B2B document exchange and e-invoicing capabilities for enterprises.
• Smart UX (PowWow Mobile) Mobile application mobilization and modernization solution enabling enterprises to transform legacy systems into modern mobile experiences.
• Magic Professional Services Professional services including implementation, consulting, project management, training, and technical support to help enterprises deploy and operate Magic platforms.

Quantifiable outcome

• Michelman saved 60+ hours weekly with ROI achieved in under 10 months
• +4 more outcomes

Named customers17 records

Segments6 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration11 records

AI capability4 records

Feature6 records

Partnerships

Nine partnerships are on record, tiered core and strategic.

• MicrosoftcoreTechnology or IntegrationStrategic partnership providing certified connectors for Microsoft Dynamics 365, SharePoint, and Azure integration. Magic xpi maintains certified Microsoft integration capabilities.
• SAPcoreTechnology or IntegrationSAP-certified connectors for SAP ERP, SAP Business One, and S/4HANA integration. Magic xpi provides certified SAP connector for enterprise integration scenarios.
• SalesforcecoreTechnology or IntegrationCertified Salesforce integration connector enabling seamless CRM-ERP connectivity for enterprise customers.
• OraclecoreTechnology or IntegrationOracle integration capabilities including certified connectors for Oracle JD Edwards and other Oracle applications.
• IBMcoreTechnology or IntegrationIBM i (AS/400) integration capabilities for legacy system modernization. Magic xpi supports IBM i integration for enterprise customers.
• AWScoreTechnology or IntegrationMagic xpi and MagicTouch available on AWS Marketplace. Cloud-native deployment support for AWS infrastructure.
• Gradient CyberstrategicStrategic or Co-development PartnerStrategic partnership announced December 2024 to strengthen cybersecurity solutions for mid-market businesses. Joint go-to-market for enhanced security offerings.
• ProdwarecoreImplementation/ SI/ Consulting PartnerSystem integrator and implementation partner that recommended and deployed Magic xpi for CREED customer implementation. Regional expertise in Europe.
• Axiom Manufacturing SystemsstrategicStrategic or Co-development PartnerPartnership to revolutionize manufacturing data integration announced February 2025. Subsequently acquired by Magic Software in July 2025 to strengthen smart manufacturing capabilities.

Scale indicators9 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• MuleSoft (Salesforce): The category-leading enterprise iPaaS, now part of Salesforce. Competes head-on with Magic xpi on hybrid cloud integration and certified connectors to the same SAP, Salesforce, and Oracle systems.
• SnapLogic: iPaaS platform with visual data mapping and AI-assisted integration, competing for the same enterprise integration RFPs as Magic xpi, particularly around SAP and SaaS connectivity.
• Workato: iPaaS player focused on business-led integration and automation. Closely overlaps Magic's value proposition of code-free integration with strong enterprise governance and a connector marketplace.
• Tray.ai: General-automation and iPaaS platform targeting enterprise integration and workflow use cases. Overlaps Magic xpi and Magic xpa on visual integration and low-code automation.
• Boomi: Low-code iPaaS platform with broad connector coverage and a strong API management story. Directly comparable to Magic xpi in target market, integration-first positioning, and enterprise/mid-market GTM.

Broad incumbents

• Informatica: Data integration and data management leader. Overlaps with Magic Touch and Magic xpi on enterprise data integration, ETL, and cloud data workflows, particularly in large enterprise data-engineering programs.
• IBM App Connect: IBM's enterprise integration suite, including App Connect and the broader Cloud Pak for Integration, is a close competitor on hybrid integration and AS/400 / IBM i modernization projects that are core to Magic's installed base.
• Microsoft Power Platform: Microsoft's low-code and integration suite (Power Automate, Logic Apps, Power Apps) provides bundled integration and app-development capabilities to the same enterprise buyer that Magic sells to, competing on price and ecosystem.

Emerging players

• OutSystems: Low-code application development platform directly comparable to Magic xpa. Targets the same enterprise digital-transformation buyers and competes on cross-platform rapid application delivery.
• Appian: Low-code process automation and application platform. Overlaps with Magic xpa and Magic xpi on enterprise workflow automation, BPM, and rapid application development use cases.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/MagicSoftware
• Facebookfacebook.com/MagicSoftwareEnterprises
• LinkedInlinkedin.com/company/magic-software-enterprises

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries1 record

Funding overview

Funding rounds3 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A6 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Magic Software Enterprises