The Acquisition Enables the Group to Expand Its Operations in the Field of Management of Payroll and Human Resources, in Which It Currently Operates Through Its Subsidiary, Michpal
Formula Systems announced that it had completed its acquisition of 100% of the outstanding shares of Unique Software Industries (“Unique”) for consideration consisting of NIS 49 million in cash, plus up to NIS 12 million of additional cash that may be paid during the four years following the closing of the acquisition, subject to Unique’s achievement of certain performance goals as defined by Formula.
Unique is a software development and services company, which during its 30 years of operations, has provided integrated solutions in the field of payroll, including pay-stubs, pension services management, education funds management, and software solutions for managing employee attendance.
This acquisition constitutes an additional strategic move towards the expansion of Formula’s operations in the field of payroll and human resources management in which it currently engages primarily through Michpal Micro Computers (1983) Ltd., a wholly-owned subsidiary that operates in the field of shelf software for payroll management and employee attendance.
Following the acquisition of Unique, Formula will begin operating in the complementary field of outsourced payroll services, in which it was not active until now, and will seek to penetrate the field of services bureaus, by way of expanding its present customer base.
Shimon Maimon, CEO of Unique Software Industries, commented: “I truly believe in Formula’s capabilities, as a leading group that brings together stable transaction management with a proven record growth strategy, to open up new opportunities for Unique to expand in a variety of areas in the field of payroll services and solutions by way of strengthening its ties with its customers.”
Guy Bernstein, Formula Systems’ CEO, remarked: “The acquisition of Unique serves as the latest in a series of strategic moves to increase our solutions offering and our market share in the field of payroll services, in which we have operated since our acquisition of Michpal in 2017. These moves have included:
- introduction of a new line of pension management software and services for Michpal’s customers (Michpal Pension, Michpal Pension Plus and Michpal 360);
- acquisition of Effective Solutions Ltd., a company specializing in providing advice to companies in the field of expense control and payroll monitoring and cost savings;
- introduction of a new services line providing consulting services regarding labor law, pension and benefits (Michpal Yeda); and
- our completion of financing by issuance of Series C debenture (in March 2019) in a total amount of NIS 300 million, which was intended in part to fund Formula’s continuing efforts to acquire companies from the fields of payroll, HR, time and attendance and pension reporting services, and to support the continued growth of our existing operations in such fields.
Unique’s activities are synergetic and complementary to Formula’s operations in the fields of payroll and HR management, and we estimate that its acquisition will lead to expanding our operations in these fields together with the broadening of Unique’s operations by capitalizing on Formula’s assets and transactional capabilities.”