Magic Software Signs Agreement in Australia
Magic Software Enterprises has signed an agreement with Magic Consulting Australia (MCA), its exclusive distributor in Australia since 1994, to form Magic Software Australia (MSA). Under the terms of the joint venture agreement, which became effective July 1, Magic will own 51 percent of MSA. MCA will control the remaining shares of the new subsidiary, which has assumed full responsibility for all marketing and sale of Magic products in Australia, as well as New Zealand.MSA will focus on both the e-commerce and AS/400 markets and has signed a contract with one Australian fashion retailer to develop an e-commerce solution. Magic also expects to expand upon the already sizable client base of MCA in Australia and leverage existing MCA partnerships. One such partnership is with Divergent, a leading supplier of point-of-sale and retail applications to Australia’s retail industry."The decision to enter into this joint venture agreement with MCA is consistent with Magic’s overall strategy to acquire partners in markets where it is believed there is strong growth potential," said Jack Dunietz, Chief Executive Officer of Magic. "Australia has the advantages of being the site for the 2000 Olympics, as well as exporting approximately 70 percent of its products to the Asian-Pacific region, which is progressing nicely in its economic recovery. We anticipate strong growth from this region."Last December, Magic acquired a majority interest in all Magic business and R&D activities in Japan as part of an agreement signed with Wacom Co. Ltd., Magic’s exclusive distributor in Japan for the past 10 years. Magic further strengthened its presence in Asia in May 1999, when it increased its holdings in Magic Software Thailand from 40 percent to 70 percent.For more information, contact Magic at (949) 250-1718, x 220, or visit http://www.magic-sw.com/.