Formula Systems
An Israeli publicly traded technology holding company whose subsidiaries provide software, information technology, and digital services.
Last updated August 26, 2026
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Overview
Formula Systems is an Israeli technology holding company established in 1985 by brothers Dan Goldstein and Gad Goldstein. Headquartered in Or Yehuda, the company has historically built its business by founding, acquiring, developing, and holding interests in software and information-technology companies rather than by marketing a single consumer-facing product line. Its portfolio has included businesses involved in enterprise software, software engineering, information-systems integration, financial-services technology, modernization of legacy systems, and related professional services. The company originated from Dan Goldstein's earlier software activity. After leaving academic research in the early 1980s, he established Formula Software Solutions, serving Israeli organizations including Egged and Mekorot. He subsequently worked with his brother Gad to establish Formula Systems and related technology ventures. During its formative period, Formula developed a position as a technology-oriented holding company and supported a range of Israeli software enterprises, several of which later became publicly traded or independently recognized businesses. A significant stage in Formula's expansion came in 1998, when it acquired control of the Mashov Group. The transaction brought a broad collection of technology assets into the group, including Magic Software Enterprises, Walla!, Paradigm Geophysical, Babylon, and other businesses. This portfolio approach gave Formula exposure to multiple software and technology niches while also making the company an important participant in Israel's emerging technology market. In 2005, Dan Goldstein reorganized the group by separating younger start-up holdings from Formula Systems through a spin-off into Mashov Computers, which was renamed Formula Vision. He then sold his interest in Formula Systems to the Emblaze Group and focused on developing the separated start-up portfolio. Emblaze held 33.6% of Formula in 2006. In late 2010, Polish software company Asseco acquired a 50.2% controlling stake in Formula Systems, bringing the Israeli holding company into the Asseco group while preserving its public-market presence. Formula's portfolio has changed over time. Companies associated with the group at different points have included Magic Software Enterprises, Matrix IT, Sapiens International Corporation, BluePhoenix Solutions, Crystal Systems, Liraz, Sivan, New Applicom, Sintec, and nextSource. Around fiscal 2010, Formula retained majority interests in three publicly traded companies: Sapiens International Corporation, Magic Software Enterprises, and Matrix. These holdings illustrate the company's core model: maintaining strategic ownership of specialized technology businesses while allowing subsidiaries to operate as distinct companies. The Formula Systems brand is therefore best understood as an investment and operating platform within the information-technology sector. Its economic and strategic profile depends substantially on the performance, ownership structure, and business direction of its subsidiaries. The company is listed in both the United States and Israel, while its controlling relationship with Asseco connects it to a wider European technology-services group. Detailed current portfolio composition, management information, and corporate website details are not established by the supplied reference material.
History
Formula Systems was founded in Israel in 1985 by brothers Dan Goldstein and Gad Goldstein. Its origins lay in Dan Goldstein's earlier software business, Formula Software Solutions, which served organizations such as Egged and Mekorot. The founders developed Formula Systems as a technology-oriented holding company, using it to establish, develop, and invest in software and information-technology businesses. Through the late 1980s and 1990s, Formula built a portfolio that included companies such as BluePhoenix, Wiztech, Matrix, and Sapiens International Corporation. Several of these businesses later became publicly traded or operated as significant independent technology companies. This portfolio-building approach distinguished Formula from a conventional software vendor: the parent company concentrated on ownership, capital allocation, and strategic development across multiple technology businesses. In 1998, Formula acquired control of the Mashov Group. The transaction expanded its holdings and brought businesses including Magic Software Enterprises, Walla!, Paradigm Geophysical, and Babylon into the wider group. The enlarged portfolio covered different parts of the software and technology landscape and strengthened Formula's position in Israel's technology sector. A major restructuring occurred in 2005. Dan Goldstein separated younger start-up holdings from Formula Systems by spinning them off under Mashov Computers, which he renamed Formula Vision. He then sold his interest in Formula Systems to the Emblaze Group and devoted his attention to the separated start-up businesses. Emblaze was reported to own 33.6% of Formula in 2006. In late 2010, Asseco, a Polish software company and part of Asseco Group, acquired a 50.2% stake in Formula Systems. This created a controlling relationship while Formula remained a public company with shares traded on the Nasdaq Global Select Market and the Tel Aviv Stock Exchange. Around fiscal 2010, Formula retained majority interests in Sapiens International Corporation, Magic Software Enterprises, and Matrix. Formula's portfolio has changed over time, and historical holdings have included Crystal Systems, Liraz, Sivan, New Applicom, Sintec, nextSource, and BluePhoenix Solutions in addition to the companies mentioned above. The company's history is consequently characterized by acquisitions, spin-offs, public-market participation, and the management of specialized software subsidiaries. The supplied reference material does not establish a complete current portfolio, current executive roster, or current corporate website.
- 2010
Asseco becomes the controlling shareholder
[1]Asseco acquired a 50.2% stake in Formula Systems, integrating the company into the broader Asseco group structure.
- 2006
Emblaze holds 33.6% of Formula Systems
[1]The Emblaze Group was reported to own a substantial minority interest in Formula Systems.
- 2005
Start-up holdings are spun off
[1]Younger start-up companies were separated under Mashov Computers, later renamed Formula Vision, as part of a group reorganization.
- 1998
Control of the Mashov Group is acquired
[1]Formula Systems acquired control of the Mashov Group, adding several software and technology businesses to its holdings.
- 1985
Formula Systems is founded
[1]Dan Goldstein and Gad Goldstein established Formula Systems in Israel after Dan's earlier software-services activity.
Products and positioning
A publicly traded Israeli technology holding company focused on building and managing a portfolio of software and information-technology businesses.
Enterprise software and IT services
Magic Software Enterprises
Magic Software Enterprises is one of the major technology companies associated with Formula Systems. It develops software and provides information-technology services. Formula's historical portfolio included a majority interest in Magic, reflecting the holding company's emphasis on software engineering and enterprise technology businesses rather than consumer products.
Information-technology services
Matrix IT
Matrix is an Israeli information-technology company that formed part of Formula Systems' portfolio. Its business category includes software development, systems integration, consulting, and technology services. Around fiscal 2010, Formula was reported to retain a majority interest in Matrix.
Enterprise software
Sapiens International Corporation
Sapiens International Corporation is a software company associated with Formula Systems and focused on enterprise applications, particularly software used by financial-services organizations. Around fiscal 2010, Formula retained a majority interest in Sapiens, making it one of the group's principal public technology holdings.
Legacy-system modernization software
BluePhoenix Solutions
BluePhoenix Solutions was among the technology companies historically developed or held within the Formula ecosystem. It was associated with software engineering and the modernization or transformation of legacy information systems. The supplied material does not establish its current relationship with Formula Systems.
Brand decisions
2010
Asseco acquires a controlling interestM&ABackground
Formula Systems remained a public technology holding company with a portfolio of software businesses, while Asseco was expanding its position in the software industry.
Action taken
Asseco acquired 50.2% of Formula Systems.
Aftermath
Formula became controlled by Asseco while continuing to trade on Nasdaq and the Tel Aviv Stock Exchange.
Ownership stake acquired. 50.2% (Late 2010)
2005
Separation of younger start-up holdingsStrategyBackground
The group contained both established technology holdings and younger start-up companies requiring a different ownership and development structure.
Action taken
Formula separated the younger start-ups under Mashov Computers, which was subsequently renamed Formula Vision.
Aftermath
Dan Goldstein sold his Formula Systems interest to Emblaze and focused on the separated start-up portfolio.
1998
Acquisition of Mashov Group controlM&ABackground
Formula Systems was expanding its technology holding-company model and sought broader exposure to software and information-technology businesses.
Action taken
The company acquired control of the Mashov Group and added its technology assets to the Formula portfolio.
Aftermath
The transaction broadened Formula's holdings and brought businesses such as Magic Software Enterprises into the group.
Recent events
Formula Systems announces agreement to acquire Zap Group[2]
Reported:
Formula Systems announced that it had signed an agreement to acquire full ownership of Zap Group from Apax Partners for NIS 240 million in cash, subject to adjustments and conditions including approval by the Israel Competition Authority.
Sources2 sources
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