Software Company Magic Acquires Low Code Development Startup PowPow
Magic stated it expects the acquisition to "be accretive to earnings" within 18 to 24 months
Nasdaq and TASE-listed software company Magic Software Enterprises Ltd. has completed its acquisition of San Francisco-based low code development startup PowPow Inc., the company announced in a stock exchange filing Monday. The companies did not provide financial details, but one person who spoke to Calcalist on condition of anonymity put the sum at $15 to $20 million. Magic has a market capitalization of $447.84 million.
Israel-based Magic develops enterprise-grade application development and business process integration software for the IT industry. The acquisition will enable Magic to offer PowPow's development platform to its clients, Magic said, enabling them to "simplify and transfer existing business processes over cross-platform web and mobile apps."
Magic stated it expects the acquisition to "be accretive to earnings" within 18 to 24 months, following an investment in product localization and in sales and marketing efforts.
San Francisco. Photo: Bloomberg