William Blair analyst Maggie Nolan last night downgraded Magic Software (MGIC) to Market Perform from Outperform without a price target after the company announced its intent to merge with Matrix I.T Ltd. The stock consideration to be paid is based on the relative valuations of both companies with the exchange ratio determined to be 31.125% and 68.875%, meaning Magic shareholders will hold 31.125% of outstanding shares of Matrix and existing Matrix shareholders will hold 68.875% of outstanding shares immediately following the merger, the analyst tells investors in a research note.
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Read More on MGIC:
- Magic Software downgraded to Market Perform from Outperform at William Blair
- Magic Software Reports Strong Q4 and 2024 Financial Results
- Magic Software Announces Proposed Merger with Matrix I.T Ltd.
- Magic Software reports Q4 non-GAAP EPS 24c vs. 24c last year
- Magic Software sees FY25 revenue $593M-$603M