Formula Systems (1985) Ltd. operates as a decentralized IT holding company that manages a portfolio of software and IT service providers. The company's business model relies on acquiring and scaling specialized technology firms, allowing them to operate independently while benefiting from group-level strategic guidance and capital. Formula Systems generates revenue primarily through two streams: IT professional services and software product sales. IT professional services, which account for approximately 61% of total revenue, are driven largely by Matrix IT, Israel's leading IT services and system integration firm. Software product sales and related services contribute around 26% of revenue, led by Sapiens International, a major provider of core software solutions for the insurance industry, and Magic Software Enterprises, which specializes in application integration and low-code platforms. Geographically, the company has a strong footprint in Israel, North America, and Europe. By combining high-margin software product sales with stable, recurring revenue from long-term IT consulting and managed services, Formula Systems maintains a resilient competitive position in the global enterprise software and digital transformation markets.
