Magic Software Enterprises is an Israeli-founded IT company that operates two businesses: proprietary low-code software platforms and IT professional services. The professional services business is the larger of the two, representing roughly 82% of revenue, and includes IT consulting, cloud services, DevOps, cybersecurity, infrastructure design, and staff augmentation, delivered primarily to Fortune 1000 companies in the U.S. and large enterprises in Israel. The software business, while smaller at roughly 18% of revenue, generates significantly higher margins (~64% gross margin vs. ~22% for services) and centers on low-code platforms — Magic xpa for application development, Magic xpi for enterprise integration, and AppBuilder for large enterprise application development. These platforms are sold to corporate IT departments and to independent software vendors who build their own vertical products on top of Magic's technology. Magic also sells several packaged vertical software products built on its own platforms. The company grows through a combination of organic expansion and bolt-on acquisitions of IT services firms, primarily in the U.S. and Israel. Cloud services and AI consulting are current growth priorities. In March 2025, Magic announced a non-binding agreement to merge with Matrix IT, Israel's largest IT services company — both are controlled by Formula Systems — which would create a combined entity with over $2B in revenue and delist Magic from NASDAQ and the Tel Aviv Stock Exchange.