Magic Announces Pricing of Offering of its Ordinary Shares

          Magic Announces Pricing of Offering of its Ordinary Shares

PR Newswire

OR YEHUDA, Israel, Feb. 28, 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.

The Company intends to use the net proceeds of the offering for general
corporate purposes, which may include, among other things, funding of its
working capital needs and funding of potential acquisitions.

The offering is expected to close on March 5, 2014, subject to customary
closing conditions. Barclays Capital Inc. and William Blair & Company, L.L.C.
are acting as joint book-running managers for the offering and Maxim Group LLC
and H.C. Wainwright & Co., LLC are acting as co-managers for the offering.

The offering of the shares is being conducted solely pursuant to a
registration statement previously filed with and subsequently declared
effective by the Securities and Exchange Commission, or SEC. Before you
invest, you should read the preliminary prospectus supplement relating to the
offering, which was filed with the SEC on February 27, 2014 and is available
on the SEC's website at http://www.sec.gov. A final prospectus supplement
relating to the offering will be filed with the SEC and will be available on
the SEC's website at http://www.sec.gov. Copies of the prospectus supplement
and accompanying base prospectus relating to this offering may be obtained,
when available, from Barclays Capital Inc., c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (888)
603-5847, email: Barclaysprospectus@broadridge.com.

This press release shall not constitute an offer to sell or a solicitation of
an offer to buy any of the securities described herein, nor shall there by any
sale of these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of such state or jurisdiction.

About Magic Software Enterprises
Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider
of mobile and cloud-enabled application development and business integration
platforms.

Forward-Looking Statements
Except for the historical information contained herein, the matters discussed
in this news release include forward-looking statements that may involve a
number of risks and uncertainties. Actual results may vary significantly based
upon a number of factors including, but not limited to, risks in product and
technology development, market acceptance of new products and continuing
product conditions, both here and abroad, release and sales of new products by
strategic resellers and customers, and other risk factors detailed in the
Company's most recent annual report and other filings with the Securities and
Exchange Commission. These forward-looking statements are made only as of the
date hereof, and the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise.

Magic is a registered trademark of Magic Software Enterprises Ltd. All other
product and company names mentioned herein are for identification purposes
only and are the property of, and might be trademarks of, their respective
owners.

Press Contact:

Amit Birk, VP M&A and General Counsel
Magic Software Enterprises
Tel: +972 (3) 538 9322
abirk@magicsoftware.com

SOURCE Magic Software Enterprises Ltd.
 
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