Magic Software has signed up to buy CoreTech Consulting Group, a provider of e-business professional services in North America. The acquisition will give Magic greater clout in North America, with access to CoreTech’s client base.
The decision to acquire Philadelphia-based CoreTech is in line with the company’s strategy to expand in the North American market. Magic has cultivated a growing pipeline of business, but has lacked the human resources to complement it. Buying CoreTech, which was founded in 1992 and has more than 200 employees, will help solve this problem.
“CoreTech’s ability to interact with well-established Fortune 500 and middle-market companies on large projects, as well as its sizable professional employee base, will give us a more immediate and profitable foothold in North America,” said Jack Dunietz, chief executive officer of Magic.
CoreTech is expected to add immediately to the revenues from Magic’s North American operations.
“CoreTech looks forward to the much larger portfolio of products, clients and partner relationships that the association with Magic will bring,” added David Moore, chief executive officer of CoreTech.
CoreTech’s clients include SmithKline Beecham, Towers Perrin, Cellular One, Paine Webber, SunTrust, Credit Suisse, Pfizer, and many more. CoreTech, which has been named in Deloitte & Touche’s ‘Fast 500’, is based in suburban Philadelphia, Pennsylvania, and has offices on the East Coast.
Magic Software Enterprises, a member of the Formula Group (Nasdaq: FORTY), develops, markets and supports software development and deployment technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems.
Magic technology, applications and professional services are available in approximately 50 countries. The Company’s North American subsidiary is in Irvine, California.