Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | MAGIC SOFTWARE ENTERPRISES LTD. |
Trading Symbol | MGIC |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 49,099,305 |
Amendment Flag | false |
Entity Central Index Key | 0000876779 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 0-19415 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | Yahadut Canada 1 Street, |
Entity Address, City or Town | Or Yehuda |
Entity Address, Postal Zip Code | 6037501 |
Entity Address, Country | IL |
Title of 12(b) Security | Ordinary Shares, NIS 0.1 Par Value |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Firm ID | 1281 |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Yahadut Canada 1 Street |
Entity Address, City or Town | Or Yehuda |
Entity Address, Postal Zip Code | 6037501 |
Entity Address, Country | IL |
Contact Personnel Name | Asaf Berenstin |
City Area Code | +972 (3) |
Local Phone Number | 538 9243 |
Contact Personnel Email Address | asafb@magicsoftware.com |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 105,943 | $ 83,062 |
Short-term bank deposits | 751 | 3,904 |
Trade receivables (net of allowance for credit losses of $5,416 and $7,066 as of December 31, 2022 and 2023, respectively) | 108,385 | 118,126 |
Unbilled receivables and contract assets | 22,713 | 30,354 |
Other accounts receivable and prepaid expenses | 18,833 | 13,652 |
Total current assets | 256,625 | 249,098 |
LONG-TERM ASSETS: | ||
Deferred tax assets | 6,729 | 3,618 |
Right-of-use assets | 25,718 | 27,536 |
Other long-term receivables | 8,623 | 5,795 |
Property, plants and equipment, net | 7,988 | 8,338 |
Intangible assets, net | 50,658 | 52,057 |
Goodwill | 166,065 | 158,699 |
Total long-term assets | 265,781 | 256,043 |
Total assets | 522,406 | 505,141 |
CURRENT LIABILITIES: | ||
Short term debts | 28,941 | 20,755 |
Trade payables | 28,415 | 27,598 |
Accrued expenses and other accounts payable | 41,492 | 46,842 |
Current maturities of lease liabilities | 4,406 | 4,591 |
Put options for non-controlling interests | 18,252 | 27,172 |
Liability in respect of business combinations | 6,656 | 19,287 |
Deferred revenues and customer advances | 13,537 | 9,808 |
Total current liabilities | 141,699 | 156,053 |
LONG-TERM LIABILITIES: | ||
Long-term debt | 52,267 | 30,412 |
Long-term lease liabilities | 23,101 | 24,282 |
Liability in respect of business combinations | 1,049 | 5,376 |
Deferred tax liabilities | 11,610 | 10,686 |
Put options for non-controlling interests | 620 | 1,120 |
Employee benefit liabilities | 1,116 | 901 |
Total long-term liabilities | 89,763 | 72,777 |
COMMITMENTS AND CONTINGENCIES | ||
Magic Software Enterprises Ltd shareholders’ equity: | ||
Ordinary shares of NIS 1 par value - Authorized: 50,000,000 shares at, December 31, 2022 and 2023; Issued and Outstanding: 49,093,055 and 49,099,305 shares as of December 31, 2022 and 2023, respectively | 1,166 | 1,166 |
Additional paid-in capital | 182,607 | 182,031 |
Accumulated other comprehensive loss | (10,314) | (6,559) |
Retained earnings | 92,522 | 86,289 |
Total equity attributable to Magic Software Enterprises Ltd shareholders | 265,981 | 262,927 |
Non-controlling interests | 24,963 | 13,384 |
Total equity | 290,944 | 276,311 |
Total liabilities and equity | $ 522,406 | $ 505,141 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) $ in Thousands | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 ₪ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 ₪ / shares |
Statement of financial position [abstract] | ||||
Trade receivables, net of allowance (in Dollars) | $ | $ 7,066 | $ 5,416 | ||
Ordinary shares, par value (in New Shekels per share) | ₪ / shares | ₪ 1 | ₪ 1 | ||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||
Ordinary shares, shares issued | 49,099,305 | 49,093,055 | ||
Ordinary shares, shares outstanding | 49,099,305 | 49,093,055 |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Software services | $ 32,694 | $ 32,930 | $ 30,934 |
Maintenance and technical support | 33,999 | 34,762 | 36,149 |
Consulting services | 468,359 | 499,100 | 413,242 |
Total revenues | 535,052 | 566,792 | 480,325 |
Total cost of revenues | 382,065 | 411,437 | 347,331 |
Gross profit | 152,987 | 155,355 | 132,994 |
Research and development expenses, net | 10,328 | 10,090 | 8,995 |
Selling and marketing expenses | 44,500 | 46,857 | 38,147 |
General and administrative expenses | 40,811 | 37,552 | 31,222 |
Change in valuation of contingent consideration related to acquisitions | 240 | (906) | 2,507 |
Operating income | 57,108 | 61,762 | 52,123 |
Financial expenses | (9,227) | (4,993) | (3,802) |
Financial income | 4,901 | 1,392 | 113 |
Increase in valuation of consideration related to acquisitions | (290) | (744) | (2,817) |
Group’s share of earnings (losses) of a company accounted for at equity, net | (56) | ||
Income before taxes on income | 52,436 | 57,417 | 45,617 |
Taxes on income | 9,934 | 11,138 | 10,278 |
Net income | 42,502 | 46,279 | 35,339 |
Attributable to: | |||
Equity holders of the Company | 37,031 | 40,470 | 29,767 |
Non-controlling interests | 5,471 | 5,809 | 5,572 |
Net income | $ 42,502 | $ 46,279 | $ 35,339 |
Net earnings per share attributable to equity holders of the Company | |||
Basic earnings per share (in Dollars per share) | $ 0.75 | $ 0.82 | $ 0.61 |
Software services [Member] | |||
Revenues: | |||
Total cost of revenues | $ 11,730 | $ 10,701 | $ 12,182 |
Maintenance and technical support [Member] | |||
Revenues: | |||
Total cost of revenues | 3,238 | 3,494 | 4,144 |
Consulting services [Member] | |||
Revenues: | |||
Total cost of revenues | $ 367,097 | $ 397,242 | $ 331,005 |
Consolidated Statements of Pr_2
Consolidated Statements of Profit or Loss (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Diluted earnings per share | $ 0.75 | $ 0.82 | $ 0.61 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 42,502 | $ 46,279 | $ 35,339 |
Other comprehensive income (loss) net of tax effect: | |||
Foreign exchange differences on translation of foreign operations | (4,429) | (19,099) | 2,750 |
Total other comprehensive income (loss), net of tax | (4,429) | (19,099) | 2,750 |
Total comprehensive income | 38,073 | 27,180 | 38,089 |
Total comprehensive income attributable to: | |||
Equity holders of the Company | 33,276 | 24,647 | 31,594 |
Non-controlling interests | 4,797 | 2,533 | 6,495 |
Total comprehensive income | $ 38,073 | $ 27,180 | $ 38,089 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Share Capital | Additional paid-in capital | Retained earnings | Accumulated other Comprehensive Income (loss) | Non-controlling interests | Total |
Balance at Dec. 31, 2020 | $ 1,164 | $ 188,415 | $ 62,673 | $ 7,437 | $ 8,718 | $ 268,407 |
Balance (in Shares) at Dec. 31, 2020 | 49,035,055 | |||||
Net income | 29,767 | 5,572 | 35,339 | |||
Other comprehensive income (loss) | 1,827 | 923 | 2,750 | |||
Total comprehensive income | 29,767 | 1,827 | 6,495 | 38,089 | ||
Exercise of options | $ 1 | 40 | 41 | |||
Exercise of options (in Shares) | 38,000 | |||||
Dividend to Magic’s shareholders | (21,780) | (21,780) | ||||
Dividend to non-controlling interests in subsidiaries | (4,233) | (4,233) | ||||
Cost of share-based payment | 956 | 956 | ||||
Acquisition of subsidiaries | 719 | 719 | ||||
Settlement of put options over non-controlling interest | (5,364) | (1,279) | (6,643) | |||
Balance at Dec. 31, 2021 | $ 1,165 | 184,047 | 70,660 | 9,264 | 10,420 | 275,556 |
Balance (in Shares) at Dec. 31, 2021 | 49,073,055 | |||||
Net income | 40,470 | 5,809 | 46,279 | |||
Other comprehensive income (loss) | (15,823) | (3,276) | (19,099) | |||
Total comprehensive income | 40,470 | (15,823) | 2,533 | 27,180 | ||
Exercise of options | $ 1 | 1 | ||||
Exercise of options (in Shares) | 20,000 | |||||
Dividend to Magic’s shareholders | (24,841) | (24,841) | ||||
Dividend to non-controlling interests in subsidiaries | (4,170) | (4,170) | ||||
Cost of share-based payment | (56) | 2,135 | 2,079 | |||
Acquisition of subsidiaries | (721) | (133) | (854) | |||
Settlement of put options over non-controlling interest | (1,239) | 2,599 | 1,360 | |||
Balance at Dec. 31, 2022 | $ 1,166 | 182,031 | 86,289 | (6,559) | 13,384 | 276,311 |
Balance (in Shares) at Dec. 31, 2022 | 49,093,055 | |||||
Net income | 37,031 | 5,471 | 42,502 | |||
Other comprehensive income (loss) | (3,755) | (674) | (4,429) | |||
Total comprehensive income | 37,031 | (3,755) | 4,797 | 38,073 | ||
Exercise of options | 22 | 22 | ||||
Exercise of options (in Shares) | 6,250 | |||||
Dividend to Magic’s shareholders | (30,798) | (30,798) | ||||
Dividend to non-controlling interests in subsidiaries | (4,055) | (4,055) | ||||
Cost of share-based payment | (225) | 4,023 | 3,798 | |||
Non-controlling interests arising from initially consolidated companies | 3,644 | 3,644 | ||||
Acquisition of non-controlling interests | (67) | (3,199) | (3,266) | |||
Settlement of put options over non-controlling interest | 846 | 6,369 | 7,215 | |||
Balance at Dec. 31, 2023 | $ 1,166 | $ 182,607 | $ 92,522 | $ (10,314) | $ 24,963 | $ 290,944 |
Balance (in Shares) at Dec. 31, 2023 | 49,099,305 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 42,502 | $ 46,279 | $ 35,339 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,553 | 19,795 | 19,837 |
Cost of share-based payment | 3,798 | 2,079 | 956 |
Changes in value of short-term and long-term loans from banks and others and deposits, net | 1,533 | (1,686) | 71 |
Changes in deferred taxes, net | (3,238) | (3,904) | (3,080) |
Payments of deferred and contingent consideration related to acquisitions | (6,572) | (3,919) | (556) |
Capital gain from sale of property, plant and equipment | (42) | ||
Effect of exchange rate on of cash and cash equivalents held in currencies other than the functional currency | 285 | 3,747 | |
Amortization of premium and accrued interest on debt instruments at fair value through other comprehensive income | (114) | 76 | 96 |
Working capital adjustments: | |||
Trade receivables | 18,426 | (2,569) | (27,539) |
Accrued expenses and other accounts payable | (7,190) | (975) | 5,415 |
Other current and long-term accounts receivable | (5,586) | (1,934) | 263 |
Trade payables | 858 | 139 | 8,792 |
Deferred revenues | 3,779 | (513) | 4,080 |
Net cash provided by operating activities | 68,992 | 56,615 | 43,674 |
Cash flows from investing activities: | |||
Payments for business acquisitions, net of cash acquired (Appendix A) | (14,244) | (21,670) | (6,833) |
Loans to related party | 909 | (2,250) | |
Proceeds from sale of property, plant and equipment | 54 | ||
Payments to former shareholders of consolidated company | (583) | ||
Purchase of financial assets measured at fair value through other comprehensive income | (1,243) | ||
Cash paid in conjunction with deferred payments and contingent liabilities related to business combinations | (11,320) | (4,870) | (5,342) |
Purchase of intangible assets | (219) | ||
Purchase of property and equipment | (1,618) | (4,381) | (1,439) |
Redemption of marketable securities | 309 | ||
Investment in a company accounted for at equity | (498) | ||
Change in short-term and long-term deposits | 4,110 | 1,682 | (5,390) |
Capitalization of software development | (3,183) | (3,059) | (3,193) |
Net cash used in investing activities | (27,616) | (34,458) | (22,197) |
Cash flows from financing activities: | |||
Exercise of employees’ stock options | 22 | 1 | 41 |
Dividend paid to non-controlling interests | (4,055) | (4,170) | (4,233) |
Dividend to Magic’s shareholders | (30,798) | (24,841) | (21,780) |
Repayment of long-term loans from banks and others | (20,994) | (14,323) | (14,467) |
Receipt of long-term loans from banks and others | 49,465 | 30,703 | 25,558 |
Repayment of lease liabilities | (5,690) | (4,792) | (5,874) |
Cash paid due to exercise of put option by non-controlling interests | (5,243) | (854) | (511) |
Net cash used in financing activities | (17,293) | (18,276) | (21,266) |
Effect of exchange rate changes on cash and cash equivalents | (1,202) | (8,909) | (248) |
Increase (decrease) in cash and cash equivalents | 22,881 | (5,028) | (37) |
Cash and cash equivalents at beginning of year | 83,062 | 88,090 | 88,127 |
Cash and cash equivalents at end of year | 105,943 | 83,062 | 88,090 |
Fair value of assets acquired and liabilities assumed at the date of acquisition: | |||
Net assets, excluding acquired cash | (197) | (1,168) | 506 |
Intangible assets, net of deferred taxes | (8,281) | (13,552) | (4,817) |
Goodwill | (9,410) | (22,370) | (8,544) |
Deferred and contingent liabilities assumed in current year business combinations | 15,420 | 5,303 | |
Non-controlling interests | 3,644 | 719 | |
Cash paid in conjunction with acquisitions, net of acquired cash total | (14,244) | (21,670) | (6,833) |
Non-cash activities: | |||
Right-of-use asset recognized with corresponding lease liability | 2,787 | 6,349 | 2,801 |
Supplemental disclosure of cash flow activities: | |||
Income taxes | 15,886 | 14,457 | 13,050 |
Interest | $ 3,208 | $ 1,306 | $ 1,264 |
General
General | 12 Months Ended |
Dec. 31, 2023 | |
General [Abstract] | |
GENERAL | NOTE 1:- GENERAL Magic Software Enterprises Ltd., an Israeli company (“the Company” or “the Company”), is a global: (i) provider of proprietary application development and business process integration platforms that accelerate the planning, development, deployment and integration of on-premise, mobile and cloud business applications (“the Magic Technology”); (ii) provider of selected packaged vertical software solutions; and (iii) vendor of software services and IT outsourcing software services. Magic Technology enables enterprises to accelerate the process of delivering business solutions that meet current and future needs and allow customers to dramatically improve their business performance and return on investment. To complement its software products and to increase its traction with customers, the Company also offers a complete portfolio of software services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental IT professional outsourcing services. The Company reports its results on the basis of two reportable business segments: software services (which include proprietary and non-proprietary software solutions, maintenance and support and related services) and IT professional services (see Note 22 for further details). The Company’s principal markets are the United States, Israel, Europe and Japan (see Note 22). For information about the Company’s holdings in subsidiaries and affiliates, see Appendix to the consolidated financial statements. |
Material Accounting Policies
Material Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies [Abstract] | |
MATERIAL ACCOUNTING POLICIES | NOTE 2:- Material ACCOUNTING POLICIES The following accounting policies have been applied consistently in the financial statements for all periods presented, unless otherwise stated. 1) Basis of presentation of the financial statements These financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). Measurement basis: The Company’s consolidated financial statements are prepared on a cost basis, except for financial assets measured at fair value through other comprehensive income (“OCI”), provisions, employee benefit assets and liabilities, and financial assets and liabilities which are presented at fair value through profit or loss. (See Note 6). The Company has elected to present the profit or loss items using the function of expense method. 2) Use of estimates, judgments and assumptions: The preparation of the consolidated financial statements requires management to make estimates, judgments, and assumptions, that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities, revenues and expenses in the financial statements. Such judgments, estimates and assumptions are related, but not limited to liabilities in respect of business combinations, goodwill and intangible assets and their subsequent impairment analysis, determination of fair value of put options of non-controlling interests, legal contingencies, research and development capitalization as well as amortization periods, classification of leases as well as the determination of the lease term and the incremental borrowing rate, income tax uncertainties, share-based compensation, as well as the determination of revenue recognition from contracts accounted for based on the estimate of percentage of completion, identification of performance obligations and the determination of the transaction price as well as the standalone selling prices, and evaluating expected credit losses (“ECL”). The Company’s management believes that the estimates, judgments, and assumptions used, are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Changes in accounting estimates are reported in the period of the change in estimate. 3) Consolidated financial statements: The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (subsidiaries). Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Potential voting rights are considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. 4) Non-controlling interests Non-controlling interests in subsidiaries, represent the equity in subsidiaries not attributable, directly or indirectly, to a parent. Non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Profit or loss and components of other comprehensive income are attributed to the Company and to non-controlling interests. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statement of financial position. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as a change in equity by adjusting the carrying amount of the non-controlling interests with a corresponding adjustment of the equity attributable to equity holders of the Company less / plus the consideration paid or received. 5) Business combinations and goodwill: Business combinations are accounted for by applying the acquisition method. The cost of the acquisition is measured at the fair value of the consideration transferred on the acquisition date with the addition of non-controlling interests in the acquiree. In each business combination, the Company chooses whether to measure the non-controlling interests in the acquiree based on their fair value on the acquisition date or at their proportionate share in the fair value of the acquiree’s net identifiable assets. A put option granted by the Group to non-controlling interests is accounted for using the expected purchase approach under the presumption that the put option will be exercised, and therefore the parent effectively holds an interest in the subsidiary’s shares as if the put option had been exercised. A put option granted by the Group to non-controlling interests for which the consideration to be paid in cash or other financial asset is recognized as a liability in the amount of the present value of the option’s exercise price. Contingent consideration is recognized at fair value on the acquisition date and classified as a financial asset or liability in accordance with IFRS 9. Subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. Goodwill is initially measured at cost which represents the excess of the acquisition consideration and the amount of non-controlling interests over the net identifiable assets acquired and liabilities assumed. If the resulting amount is negative, the acquirer recognizes the resulting gain on the acquisition date. 6) Functional currency and presentation currency: The presentation currency of these financial statements is the U.S dollar (the “dollar”), since the Company believes that financial statements in U.S dollars provide more relevant information to its investors and users of the financial statements. Also, the dollar is the currency of the primary economic environment in which the Company and certain subsidiaries operate. Thus, the functional and reporting currency of the Company and certain subsidiaries is the dollar. The functional currency of each subsidiary represents the primary economic environment in which each subsidiary operates. 7) Revenue recognition: Revenue from contracts with customers is recognized when control of the promised goods or services are transferred to the customers. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). The Company enters into contracts that can include various combinations of products, software and professional services, as detailed below, which are generally distinct from each other and accounted for as separate performance obligations. The Company derives its revenues from licensing the rights to use its software (proprietary and non-proprietary), provision of related professional services, maintenance and technical support as well as from other software and IT professional services (either fixed price or based on time and materials). The Company sells its products primarily through direct sales force and indirectly through distributors and value-added resellers. The Company recognizes revenue when or as it satisfies a performance obligation by transferring software license or software related services to the customer, either at a point in time or over time. When the Company enters into a contract for the sale of a software license which does not require significant implementation services and the customer receives the rights to use the perpetual or term-based software license, the Company recognizes revenue from the sale of the software license at the time of delivery, when the customer receives control of the software license. The software license is considered a distinct performance obligation recognized at a point-in-time, as the customer can benefit from the software on its own or together with other readily available resources. Revenue from long-term contracts which involve significant implementation, customization, or integration of the Company’s software license to customer-specific requirements are considered as one performance obligation satisfied over-time. The underlying deliverable is owned and controlled by the customer and does not create an asset with an alternative use to the Company. The Company recognizes revenue of such contracts over time using cost inputs, which recognize revenue and gross profit as work is performed based on a ratio between actual costs incurred compared to the total estimated costs for the contract, to measure progress toward completion of its performance obligations. In addition, the Company provides professional services that do not involve significant customization to customer-specific specifications (typically staffing or consulting services). The revenue is recognized as the services are performed, either on a straight-line basis or based on the hours of services (time and material) that were provided to the customer, in accordance with the terms of the contracts. The Company’s revenues from post contract support are derived from annual maintenance contracts providing for unspecified upgrades for new versions and enhancements on a when-and-if-available basis for an annual fee, as well as technical support for software licenses previously sold. The right for an unspecified upgrade for new versions and enhancements on a when-and-if-available basis do not specify the features, functionality and release date of future product enhancements for the customer to know what will be made available and the general timeframe in which it will be delivered. The Company considers the post contract support performance obligation as a distinct performance obligation that is satisfied over time and recognized on a straight-line basis over the contractual period. Revenues from professional services, both related to software and IT professional services businesses consists of either fixed price or time and materials, are considered performance obligations that are satisfied over time and revenues are recognized as the services are provided. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Stand-alone selling prices of software licenses are typically estimated using the residual approach. Stand-alone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. When another party is involved in providing goods or services to the customer, the Company examines whether the nature of its promise is a performance obligation to provide the defined goods or services itself, which means the Company is a principal and therefore recognizes revenue in the gross amount of the consideration, or to arrange that another party provide the goods or services which means the Company is an agent and therefore recognizes revenue in the amount of the net commission. The Company is a principal when it controls the promised goods or services before their transfer to the customer. Indicators that the Company controls the goods or services before their transfer to the customer include, inter alia, as follows: the Company is responsible for fulfilling the promises in the contract; the Company has inventory risk before the goods or services are transferred to the customer; and the Company has discretion in setting the prices of the goods or services. Revenue from third-party sales is recorded at a gross or net amount according to certain indicators. The application of these indicators for gross and net reporting of revenue depends on the relative facts and circumstances of each sale. The Company pays commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales or profit goals. The Company expenses sales commissions as they are incurred when the amortization period would have been less than one year. In addition, generally, sales commissions which are paid upon contract renewal are commensurate with the initial commissions as the renewal amounts are substantially identical to the initial commission costs. During the years ended December 31, 2023 and 2022, no costs have been capitalized. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. 8) Income tax: Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity. ● Current taxes: The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date as well as adjustments required in connection with the tax liability in respect of previous years. ● Deferred taxes: Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes. Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Deductible carryforward losses and temporary differences for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that their utilization is probable. Taxes that would apply in the event of the disposal of investments in investees have not been considered in computing deferred taxes, as long as the disposal of the investments in investees is not probable in the foreseeable future. Also, deferred taxes that would apply in the event of distribution of earnings by investees as dividends have not been considered in computing deferred taxes, since the distribution of dividends does not involve an additional tax liability or since it is the Company’s policy not to initiate distribution of dividends from a subsidiary that would trigger an additional tax liability. Taxes on income that relate to distributions of an equity instrument and to transaction costs of an equity transaction are accounted for pursuant to IAS 12. Deferred taxes are offset if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority. ● Uncertain tax position: A provision for uncertain tax positions, including additional tax and interest expenses, is recognized when it is more likely than not that the Company will have to use its economic resources to pay the obligation. 9) Leases: The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration. i) The Company as lessee For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to twelve months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract. Leases which entitle employees to a company car as part of their employment terms are accounted for as employee benefits in accordance with the provisions of IAS 19 and not as subleases. On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company’s incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method. On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term. Following are the amortization periods of the right-of-use assets by class of underlying asset: Years Mainly Land and buildings 1-12 3 Motor vehicles 1-5 3 The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36. ii) Lease extension and termination options A non-cancelable lease term includes both the periods covered by an option to extend the lease when it is reasonably certain that the extension option will be exercised and the periods covered by a lease termination option when it is reasonably certain that the termination option will not be exercised. In the event of any change in the expected exercise of the lease extension option or in the expected non-exercise of the lease termination option, the Company remeasures the lease liability based on the revised lease term using a revised discount rate as of the date of the change in expectations. The total change is recognized in the carrying amount of the right-of-use asset until it is reduced to zero, and any further reductions are recognized in profit or loss. 10) Property, plant and equipment, net: Property, plant and equipment are measured at cost, including directly attributable costs, less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets at annual rates as follows: Years Software 3-5 (mainly 5) Computers and peripheral equipment 3-5 Office furniture and equipment 7-15 (mainly 7) Motor vehicles 7 Leasehold improvements are amortized using the straight-line method over the term of the lease (including option terms that are deemed to be reasonably assured) or the estimated useful life of the improvements, whichever is shorter. The useful life, the depreciation method and the residual value of an asset are reviewed at least each year-end (at the end of the year) and any changes are accounted for prospectively as a change in accounting estimate. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized. 11) Intangible assets: Separately acquired intangible assets are measured on initial recognition at cost, including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Expenditures relating to internally generated intangible assets, excluding capitalized development costs, are recognized in profit or loss when incurred. Intangible assets with a finite useful life are amortized over their useful life and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year end. Research and development expenditures Research expenditures incurred in the process of software development are recognized in profit or loss when incurred. An intangible asset arising from a software development project or from the development phase of an internal project is recognized if the Company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company’s intention to complete the intangible asset and use or sell it; the ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the ability to measure reliably the respective expenditure asset during its development. The Company establishes technological feasibility upon completion of a detailed program design or a working model. Capitalized software costs are measured at cost less any accumulated amortization and any accumulated impairment losses on a product-by-product basis. Amortization of capitalized software costs begin when development is complete, and the product is available for use or for sale. The Company considers a product to be available for use when the Company completes its internal validation of the product that is necessary to establish that the product meets its design specifications including functions, features, and technical performance requirements. Internal validation includes the completion of coding, documentation and testing that ensure bugs are reduced to a minimum. The internal validation of the product takes place a few weeks before the product is made available to the market. In certain instances, the Company enters into a short pre-release stage, during which the product is made available to a selected number of customers as a beta program for their own review and familiarization. Subsequently, the release is made generally available to customers. Once a product is considered available for use, the capitalization of costs ceases and amortization of such costs to “cost of sales” begins. Capitalized software costs are amortized on a product-by-product basis by the straight-line method over the estimated useful life of the software product (between 3-5 years). Research and development costs incurred in the process of developing product enhancements are generally charged to expenses as incurred. The Company assesses the recoverability of its capitalized software costs on a regular basis by assessing the net realizable value of these intangible assets based on the estimated future gross revenues from each product reduced by the estimated future costs of completing and disposing of it, including the estimated costs of performing maintenance and customer support over its remaining economical useful life using internally generated projections of future revenues generated by the products, cost of completion of products and cost of delivery to customers over its remaining economical useful life. During the years ended December 31, 2021, 2022 and 2023, no such unrecoverable amounts were identified. Other intangible assets Intangible assets excluding capitalized development costs are comprised mainly of customer-related intangible assets, backlogs, acquired technology and patent, and are amortized over their useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. The useful life of intangible assets is as follows: Years Customer relationships Up to 15 Acquired technology Up to 10 (mainly 5) The useful life of these assets is reviewed annually to determine whether their indefinite life assessment continues to be supportable. If the events and circumstances do not continue to support the assessment, the change in the useful life assessment from indefinite to finite is accounted for prospectively as a change in accounting estimate, and on that date the asset is tested for impairment. Commencing from that date, the asset is amortized systematically over its useful life. 12) Impairment of non-financial assets: The Company evaluates the need to record an impairment of non-financial assets (property, plant and equipment, capitalized software costs and other intangible assets, goodwill) whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated, at the acquisition date, to each of our cash-generating units that are expected to benefit from the synergies of the combination. The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment. Goodwill is tested for impairment by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the goodwill has been allocated. An impairment loss is recognized if the recoverable amount of the cash-generating unit (or group of cash-generating units) to which goodwill has been allocated is less than the carrying amount of the cash-generating unit (or group of cash-generating units). Any impairment loss is allocated first to goodwill. Impairment losses recognized for goodwill cannot be reversed in subsequent periods. During the years ended December 31, 2021, 2022 and 2023, no impairment loss was identified. 13) Financial instruments: The accounting policy for financial instruments in accordance with IFRS 9, “Financial Instruments” is as follows: 1. Financial assets Financial assets are measured upon initial recognition at fair value plus transaction costs that are directly attributable to the acquisition of the financial assets, except for financial assets measured at fair value through profit or loss in respect of which transaction costs are recorded in profit or loss. Impairment of financial assets: The Company evaluates at the end of each reporting period the loss allowance for financial debt instruments which are not measured at fair value through profit or loss. An impairment loss on debt instruments measured at amortized cost is recognized in profit or loss with a corresponding loss allowance that is offset from the carrying amount of the financial asset. The Company has short-term financial assets such as trade receivables in respect of which the Company applies a simplified approach in IFRS 9 and measures the loss allowance in an amount equal to the lifetime expected credit losses. Trade receivables include original invoiced amounts less an allowance for any potential uncollectible amounts and less invoiced amounts from maintenance and professional services contracts which haven’t been recognized yet . 2. Financial liabilities a) Financial liabilities measured at amortized cost: Financial liabilities are initially recognized at fair value less transaction costs that are directly attributable to the issue of the financial liability. After initial recognition, the Company measures all financial liabilities at amortized cost using the effective interest rate method, except for financial liabilities at fair value through profit or loss. b) Financial liabilities measured at fair value through profit or loss: At initial recognition, the Company measures financial liabilities that are not measured at amortized cost at fair value. Transaction costs are recognized in profit or loss. After initial recognition, changes in fair value are recognized in profit or loss, except for put option granted to non-controlling interests. Put option granted to non-controlling interests: When the Company grants to non-controlling interests a put option to sell part or all of their interests in a subsidiary, during a certain period, even if such purchase obligation is conditional on the counterparty’s exercise of its contractual right to cause such redemption, if the put option agreement does not transfer to the Company any benefits incidental to ownership of the equity instrument (i.e. the Company does not have a present ownership in the shares concerned) then at the end of each reporting period the non-controlling interests (to which a portion of net profit attributable to non-controlling interests is allocated) are classified as a financial liability, as if such put-able equity instrument was redeemed on that date. The difference between the non-controlling interests carrying amount at the end of the reporting period and the present value of the liability is recognized directly in equity of the Company, under “Additional paid-in capital”. The Company remeasures the financial liability at the end of each reporting period based on the estimated present value of the consideration to be transferred upon the exercise of the put option. If the option is exercised in subsequent periods, the consideration paid upon exercise is treated as settlement of the liability. If the put option expires, the liability is settled and a portion of the investment in the subsidiary disposed of, without loss of control therein. 14) Fair value measurement: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - inputs other than quoted prices included within Level 1 that are observable directly or indirectly. Level 3 - inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data). All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement. 15) Provisions: A provision in accordance with IAS 37 is recognized when the Company has a present (legal or constructive) obligation as a result of a past event, it is expected to require the use of economic resources to clear the obligation and a reliable estimate has been made. Following are the types of provisions included in the financial statements: i. Legal claims: A provision for claims is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is more likely than not that an outflow of resources embodying economic benefits will be required by the Company to settle the obligation and a reliable estimate can be made of the amount of the obligation. ii. Contingent liability recognized in a business combination: A contingent liability in a business combination is measured at fair value upon initial recognition. In subsequent periods, it is measured at the higher of the amount initially recognized less, when appropriate, cumulative amortization, and the amount that would be recognized at the end of the reporting period in accordance with IAS 37. 16) Employee benefits: The Company maintains several employee benefit plans: i. Short-term employee benefits: Short-term employee benefits are benefits that are expected to be settled wholly before twelve months after the end of the annual repo |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Line Items] | |
BUSINESS COMBINATIONS | NOTE 3:- BUSINESS COMBINATIONS Current year acquisitions On June 8, 2023, the Company acquired 60% of K.M.T. (M.H.) Technologies Communication Computer Ltd. (“KMT”). KMT delivers a broad spectrum of ICT products, cloud platform, VoIP, technical support and planning and construction of computing. KMT was acquired for a total consideration of NIS 55,039 ($ 14,875). NIS 60 million was paid upon closing of which a payment of NIS 15 million is related to a contingent consideration depending on the future operating results achieved by KMT referring to years 2023-2025. If the future operating results will not be fully achieved, the seller will be required to return the whole or part of the contingent consideration. This contingent consideration was accounted for as a financial asset measured at its fair value as of the acquisition date of NIS 5 million ($1.4 million). The results of operations were included in the consolidated financial statements of the Company commencing June 30, 2023. Acquisition-related costs were immaterial. Unaudited pro forma condensed results of operations were not presented since they were not material to the Company’s consolidated statement of profit or loss. The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition: Net assets, excluding $632 of cash acquired $ 197 Intangible assets, net of deferred tax liabilities 8,281 Non-controlling interests (3,644 ) Goodwill 9,410 Total assets acquired $ 14,244 The goodwill from the acquisition of KMT is primarily attributable to potential synergy with Magic, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Previous year acquisitions a. On December 2, 2021, the Company entered into a Share Purchase Agreement (“the Agreement”) to acquire 50.1% of the outstanding share capital of Appush Ltd. (formerly known as Vidstart Ltd.) (“Appush”), a provider of a video advertising platform that offers personalized automated methods and real-time smart optimization, helping its clients achieve high yields in the competitive digital ecosystem, for $21,492. Of which, $11,042 was paid upon closing. The final closing and execution of the Agreement occurred on January 27, 2022. In addition, the Company paid $1.5 million as an advance payment for future acquisition of the remainder of Appush’s shares. According to the Agreement, the Company is obliged to purchase the remainder of Appush’s shares in stages until it will hold 100% of Appush’s shares on or before December 31, 2026. This obligation was accounted for as a financial liability measured at its fair value as of the acquisition date of $10,450. Beyond the $11,042 paid in 2021, the Company paid $239 in 2022 and $4,962 in 2023. The results of operations were included in the consolidated financial statements of the Company commencing January 27, 2022. The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition: Net liabilities, excluding $1,548 of cash acquired $ (2,762 ) Intangible assets, net of deferred tax liabilities 7,445 Goodwill 15,261 Total assets acquired $ 19,944 The goodwill from the acquisition of Appush is primarily attributable to potential synergy with Magic, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. b. On August 23, 2022, the Company acquired The Goodkind Group, LLC (“TGG”) for a total consideration of $11,629, subject to net working capital adjustments. Of which, $7,993 was paid upon closing. The remainder constitutes a deferred payment payable in 2023 and 2024. TGG provides permanent and temporary staffing needs in various sectors including: Information Technology, Accounting & Finance, Digital Media, Marketing, Human Resources, Financial Services. TGG specializes in customizing solutions and programs to their clients. With On-Site programs and sourcing models the Company solutions includes functions which differs from standard staffing companies. TGG provides assistance in the areas of compensation design and development, employee opinion surveys, employment policies and practices, performance management, regulatory and compliance issues and succession planning. The results of operations were included in the consolidated financial statements of the Company commencing August 23, 2022. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Net assets, excluding $147 of cash acquired $ 3,177 Customer relationships, net of deferred tax liabilities 3,901 Goodwill 4,404 Total assets acquired $ 11,482 The goodwill from the acquisition of TGG is primarily attributable to potential synergy with Magic, as well as certain intangible assets that do not qualify for separate recognition. c. On July 1, 2022, the Company acquired Intrabases SAS (“Intrabases”), a provider of IT professional services based in Nantes, France. The consideration of the transaction is comprised solely from a cash consideration in an amount of $3,428. The results of operations were included in the consolidated financial statements of the Company commencing July 1, 2022. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Net assets, excluding $447 of cash acquired $ 120 Customer relationships, net of deferred tax liabilities 1,054 Goodwill 1,807 Total assets acquired $ 2,981 The goodwill from the acquisition of Intrabases is primarily attributable to potential synergy with Magic, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. d. During 2022, the Company entered into two separate Asset Purchase Agreements which meet the definition of a business. Therefore, the Company deemed them as business combinations which were accounted for in accordance with IFRS 3. These aforementioned acquisitions are immaterial, both individually and in aggregate. The total consideration paid for these acquisitions was $1,753. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisitions: Net liabilities (308 ) Customer relationships, net of deferred tax liabilities 1,163 Goodwill 898 Total assets acquired $ 1,753 The goodwill from these acquisitions is primarily attributable to potential synergy with Magic, as well as certain intangible assets that do not qualify for separate recognition. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 4:- CASH AND CASH EQUIVALENTS December 31, 2022 2023 Balance nominated in USD $ 38,688 $ 57,653 Balance nominated in NIS 25,197 35,034 Balance nominated in other currencies 19,177 13,256 $ 83,062 $ 105,943 |
Other Accounts Receivable And P
Other Accounts Receivable And Prepaid Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Other Accounts Receivable And Prepaid Expenses [Abstract] | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | NOTE 5:- OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES The following table summarizes the composition of the Company’s other accounts receivable and prepaid expenses: December 31, 2022 2023 Prepaid expenses $ 4,262 $ 5,606 Government authorities 3,659 5,289 Related parties 3,077 3,178 Marketable securities and others 2,654 4,760 $ 13,652 $ 18,833 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 6:- FAIR VALUE MEASUREMENT In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. The Company’s financial assets and liabilities measured at fair value on a recurring basis, including accrued interest components, consisted of the following types of instruments as of December 31, 2022 and 2023: Fair value measurements December 31, 2023 Level 3 Total Assets: Assets in respect of business combinations $ 1,368 $ 1,368 $ 1,368 $ 1,368 Liabilities: Liability in respect of business combinations $ 6,175 $ 6,175 Put options of non-controlling interests 18,872 18,872 $ 25,047 $ 25,047 Fair value measurements December 31, 2022 Level 3 Total Liabilities: Liability in respect of business combinations $ 19,693 $ 19,693 Put options of non-controlling interests 28,292 28,292 $ 47,985 $ 47,985 There were no Level 1 or Level 2 instruments during neither of the reported periods. The movement in the contingent consideration in respect of the business combinations is as follows: December 31, 2022 2023 Opening balance $ 17,772 $ 19,693 Increase in contingent consideration due to acquisitions 10,670 - Payment of contingent consideration (8,547 ) (13,908 ) Increase in fair value of contingent consideration 119 880 Decrease in fair value of contingent consideration (1,025 ) (640 ) Foreign currency translation adjustments (598 ) (146 ) Amortization of interest and exchange rate 1,302 296 Closing balance $ 19,693 $ 6,175 The movement in the deferred consideration in respect of the business combinations is as follows: December 31, 2022 2023 Opening balance $ 2,755 $ 4,970 Increase in deferred consideration due to acquisitions 4,744 - Payment of deferred consideration (1,742 ) (3,757 ) Amortization of interest and exchange rate 74 62 Working (861 ) 255 Closing balance $ 4,970 $ 1,530 The financial assets and liabilities in the consolidated statements of financial position are classified by groups of financial instruments pursuant to IFRS 9: December 31, 2022 2023 Financial assets Financial assets at cost: Cash and cash equivalents $ 83,062 $ 105,943 Short-term bank deposits 3,904 751 Trade receivables, net 118,126 108,385 Marketable securities 757 2,316 Total financial assets at cost measured at cost: $ 205,849 $ 217,395 Financial assets at fair value through profit or loss: Assets in respect of business combinations $ - $ 1,368 Total financial assets $ 205,849 $ 218,763 Financial liabilities at fair value through equity: Put options of non-controlling interests $ 28,292 $ 18,872 Financial liabilities at fair value through profit or loss: Liability in respect of business combinations $ 24,663 $ 7,705 Financial liabilities measured at amortized cost: Loans from bank and financial institutions (short-term and long-term debts $ 51,167 $ 81,208 Lease liabilities 28,873 27,507 Total financial liabilities measured at amortized cost: $ 80,040 $ 108,715 Total financial and lease liabilities $ 132,995 $ 135,292 |
Property, Plants and Equipment,
Property, Plants and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plants and Equipment, Net [Abstract] | |
PROPERTY, PLANTS AND EQUIPMENT, NET | NOTE 7:- PROPERTY, PLANTS AND EQUIPMENT, NET Composition and movement: Software Motor Office Computers Leasehold Total Cost: Balance as of January 1, 2022 $ 1,623 $ 1,444 $ 3,839 $ 8,106 $ 3,725 $ 18,737 Additions during the year: Purchases 110 9 1,365 2,702 195 4,381 Acquisition of subsidiaries 4 - 55 112 8 179 Adjustments arising from translating financial statements of foreign operations (220 ) (181 ) (555 ) (1,668 ) 1,996 (628 ) Decreases during the year: Disposals (25 ) (2 ) (309 ) (632 ) (44 ) (1,012 ) Balance as of December 31, 2022 $ 1,492 $ 1,270 $ 4,395 $ 8,620 $ 5,880 $ 21,657 Accumulated depreciation: Balance as of January 1, 2022 $ 1,510 $ 1,240 $ 2,480 $ 6,594 $ 1,041 $ 12,865 Additions during the year: Depreciation 47 4 583 1,192 84 1,910 Disposals (23 ) (2 ) (284 ) (580 ) (41 ) (930 ) Adjustments arising from translating financial statements of foreign operations (135 ) (152 ) 104 (520 ) 177 (526 ) Balance as of December 31, 2022 $ 1,399 $ 1,090 2,883 $ 6,686 $ 1,261 $ 13,319 Depreciated cost at December 31, 2022 $ 93 $ 180 $ 1,512 $ 1,934 $ 4,619 $ 8,338 Software Motor vehicles Office furniture and equipment Computers and peripheral equipment Leasehold improvements Total Cost: Balance as of January 1, 2023 $ 1,492 $ 1,270 $ 4,395 $ 8,620 $ 5,880 $ 21,657 Additions during the year: Purchases 463 3 491 591 70 1,618 Acquisitions of subsidiaries 25 2 302 616 43 988 Adjustments arising from translating financial statements of foreign operations (22 ) (19 ) (255 ) (150 ) (136 ) (582 ) Decreases during the year: Disposals (3 ) (94 ) (52 ) (58 ) (7 ) (214 ) Balance as of December 31, 2023 $ 1,955 $ 1,162 $ 4,881 $ 9,619 $ 5,850 $ 23,467 Accumulated depreciation: Balance as of January 1, 2023 $ 1,399 $ 1,090 2,883 $ 6,686 $ 1,261 $ 13,319 Additions during the year: Depreciation 46 48 563 816 448 1,921 Disposals (3 ) (94 ) (51 ) (48 ) (7 ) (203 ) Acquisitions of subsidiaries 21 - 257 528 37 843 Adjustments arising from translating financial statements of foreign operations (36 ) (48 ) (46 ) (241 ) (30 ) (401 ) Balance as of December 31, 2023 $ 1,427 $ 996 3,606 $ 7,741 $ 1,709 $ 15,479 Depreciated cost at December 31, 2023 $ 528 $ 166 $ 1,275 $ 1,878 $ 4,141 $ 7,988 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 8:- INTANGIBLE ASSETS, NET Composition and movement: Capitalized Customer Acquired Others Total Cost: Balance as of January 1, 2022 $ 90,101 $ 86,651 $ 18,371 $ 637 $ 195,760 Capitalized development costs 3,059 - - - 3,059 Purchase of intangible asset - 219 - - 219 Acquisition of subsidiaries - 11,319 2,707 - 14,026 Adjustments arising from translating financial statements of foreign operations (103 ) (5,055 ) (1,030 ) (53 ) (6,241 ) Balance as of December 31, 2022 $ 93,057 $ 93,134 $ 20,048 $ 584 $ 206,823 Accumulated amortization and impairment: Balance as of January 1, 2022 $ 79,354 $ 54,494 $ 10,329 $ 193 $ 144,370 Amortization recognized in the year 3,817 7,865 1,797 95 13,574 Adjustments arising from translating financial statements of foreign operations - (2,930 ) (244 ) (4 ) (3,178 ) Balance as of December 31, 2022 $ 83,171 $ 59,429 $ 11,882 $ 284 $ 154,766 Amortized cost at December 31, 2022 $ 9,886 $ 33,705 $ 8,166 $ 300 $ 52,057 Capitalized Customer Acquired Others Total Cost: Balance as of January 1, 2023 $ 93,057 $ 93,134 $ 20,048 $ 584 $ 206,823 Capitalized development costs 3,183 - - - 3,183 Acquisition of subsidiaries - 7,704 - 1,706 9,410 Adjustments arising from translating financial statements of foreign operations (32 ) (1,172 ) (332 ) (13 ) (1,549 ) Balance as of December 31, 2023 96,208 99,666 19,716 2,277 217,867 Accumulated amortization and impairment: Balance as of January 1, 2023 $ 83,171 $ 59,429 $ 11,882 $ 284 $ 154,766 Amortization recognized in the year 3,545 7,925 1,712 291 13,473 Adjustments arising from translating financial statements of foreign operations - (864 ) (163 ) (3 ) (1,030 ) Balance as of December 31, 2023 86,716 66,490 13,431 572 167,209 Amortized cost at December 31, 2023 $ 9,492 $ 33,176 $ 6,285 $ 1,705 $ 50,658 During the years ended December 31, 2021, 2022 and 2023 the Company recognized amortization expenses related to intangible assets as follows: Year ended December 31, 2021 2022 2023 Cost of revenues $ 6,068 $ 5,405 $ 5,471 Selling and marketing expenses 6,968 8,169 8,002 $ 13,036 $ 13,574 $ 13,473 Intangible assets composition by reportable segment as of December 31, 2023: IT Software Total Capitalized Software development costs $ 788 $ 8,704 $ 9,492 Customer relationship 24,517 8,659 33,176 Acquired technology 1,439 4,846 6,285 Others 1,487 218 1,705 Total $ 28,231 $ 22,427 $ 50,658 The estimated future amortization expense of intangible assets as of December 31, 2023 is as follows: 2024 $ 13,136 2025 11,040 2026 9,011 2027 6,338 2028 and thereafter 11,133 $ 50,658 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
GOODWILL | NOTE 9:- GOODWILL The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2023: IT Software Total As of January 1, 2022 $ 75,603 $ 71,200 $ 146,803 Business combinations 19,622 2,705 22,327 Measurement period adjustments (902 ) (176 ) (1,078 ) Foreign currency translation adjustments (4,326 ) (5,027 ) (9,353 ) As of January 1, 2023 $ 89,997 $ 68,702 $ 158,699 Business combinations 9,410 - 9,410 Foreign currency translation adjustments (959 ) (1,085 ) (2,044 ) As of December 31, 2023 $ 98,448 $ 67,617 $ 166,065 The Company performed annual impairment tests as of December 31, 2022 and 2023 and did not identify any impairment losses (see Note 2). The goodwill is allocated to both the IT Professional Services and Software Services segments, which represent the lowest level within the Company at which goodwill is monitored for internal management purposes. Impairment test of goodwill for the year ended on December 31, 2023: Impairment loss for goodwill is recognized if the recoverable amount of the goodwill is less than the carrying amount. The recoverable amount is the greater of fair value less costs of disposal, or value in use of the relevant reporting level (i.e. a CGU of a group of CGU’s). The Company performed an assessment for goodwill impairment for both of its segments, which is the level at which goodwill is monitored for internal management purposes and concluded that there is no impairment loss for the year ended December 31, 2023, based on the assumptions presented below: December 31, 2023 IT Software Carrying amount $ 187,183 $ 74,009 Weighted average cost of capital 15 % 13.9 % Terminal value growth rate 3 % 3 % Actual results may differ from those assumed in the Company’s valuation method. It is reasonably possible that the Company’s assumptions described above could change in future periods. If any of these were to vary materially from the Company’s plans, it may record impairment of goodwill allocated to this reporting unit in the future. Based on the Company’s abovementioned assessment as of December 31, 2023, no goodwill was determined to be impaired, since the fair value of the Company’s group of cash-generating units significantly exceeded their carrying amount. |
Short Term Debts
Short Term Debts | 12 Months Ended |
Dec. 31, 2023 | |
Short Term Debts [Abstract] | |
SHORT TERM DEBTS | NOTE 10:- SHORT TERM DEBTS December 31, 2023 Interest rate December 31, % Currency 2022 2023 Short-term loans from banks 3.4-6.8 NIS $ 2,449 $ 2,772 Current maturities of long-term loans from financial institutions and banks 2.1-7.2 NIS 9,310 11,226 Current maturities of long-term loans from banks 7.5-8.1 USD 8,908 13,209 Accrued interest on long term debt 2.6- 3.14 NIS 23 75 Accrued interest on long term debt 6.07 USD 65 1,659 $ 20,755 $ 28,941 |
Accrued Expenses and Other Acco
Accrued Expenses and Other Accounts Payable | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Accounts Payable [Abstract] | |
ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE | Note 11:- ACCRUED EXPENSES AND other accounts payable Accrued expenses and other accounts payable are comprised of the following as of the below dates: December 31, 2022 2023 Employees and payroll accruals $ 29,746 $ 27,460 Accrued expenses 10,239 9,296 Government authorities and other 6,857 4,736 Total $ 46,842 $ 41,492 |
Long Term Debts
Long Term Debts | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Debts [Abstract] | |
LONG TERM DEBTS | Note 12:- Long term DEBTS a. Long term liabilities to banks and others are comprised of the following as of the below dates: Linkage Interest December 31, basis rate 2022 2023 % Loans from banks and others NIS 2.12 – 7.2 $ 12,161 $ 29,010 Bank loans USD 3.4 – 8.1 36,408 47,634 Other long-term debts JPY 1.71 61 58 $ 48,630 $ 76,701 Less current maturities NIS, USD (18,218 ) (24,435 ) $ 30,412 $ 52,267 b. Maturity dates: December 31, 2022 2023 First year (Current maturities) $ 18,218 $ 24,435 Second year 10,043 18,731 Third year 9,818 14,617 Fourth year 5,000 15,037 Fifth year and thereafter 5,551 3,881 Total $ 48,630 $ 76,701 c. Financial Covenants: On March 27, 2023, the Company entered into a loan agreement with an Israeli bank, pursuant to which, the Company borrowed $20,000 for a four-year term (the “Bank Loan”). The Bank Loan will mature on March 27, 2027, and will be repaid in four (4) equal annual instalments of $6,052 (including interest) starting March 27, 2024. The Bank Loan bears interest at the rate SOFR + 3.38%. The interest is paid on a yearly basis. On June 7, 2023, the Company entered into a loan agreement with an Israeli bank, pursuant to which, the Company borrowed ILS 60,000 thousands for a five-year term (the “Bank Loan”). The Bank Loan will mature on May 7, 2028, and will be repaid in five (5) equal annual instalments of ILS 12,000 thousands (not including interest) starting May 7, 2024. The Bank Loan bears an interest rate of prime + 0.92% per annum, payable in two semi-annual payments. These two Bank Loans, which may be prepaid under certain circumstances, are subject to various financial covenants which mainly consist of the following: Under the terms of the Loans, the Company has undertaken to maintain the following financial covenants, as they will be expressed in its consolidated financial statements, as described: a. The Company’s total equity shall not be lower than $150 million (one hundred and fifty million U.S. Dollars) at all times; b. The ratio of the Company’s total financial debts less cash, short-term deposits and short-term marketable securities to the total assets will not exceed 30%; c. The ratio of the Company’s total financial debts less cash, short-term deposits and short-term marketable securities to the annual EBITDA will not exceed 3.25 to 1. As of December 31, 2023, the Company was in compliance with the financial covenants. |
Related Parties Transactions
Related Parties Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Parties Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | Note 13:- RELATED PARTies TRANSACTIONS Agreements with controlling shareholder and its affiliates: The Company has in effect agreements with affiliated companies pursuant to which the Company has rendered services amounting to approximately $5,615, $6,990, and $3,678, in aggregate for the years ended December 31, 2021, 2022 and 2023, respectively and acquired services amounting to approximately $2,639, $3,088 and $3,371 for the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2022 and 2023, the Company had trade and other receivables balances due to its related parties in amount of approximately $8,519 and $5,494, respectively. In addition, as of December 31, 2022 and 2023, the Company had trade payables balances due from its related parties in amount of approximately $124 and $322, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | Note 14:- LEASES The Company leases substantially all of its office space and vehicles under operating leases. The Company’s leases have original lease periods expiring between 2024 and 2034. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancellable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. In July 2020, the Company entered into a lease agreement for new corporate offices for the Company in Or Yehuda, Israel. The lease expires in June 2033, with an option by the Company to extend for an additional 10-years term. The Company deemed this option as reasonably certain to be renewed. The Company has several leased offices in the United States, with expiry dates varying between 2024 and 2026, with renewal options varying between 2024 and 2029. In November 2021, one of the Company’s subsidiaries in Israel entered into a lease agreement for new corporate offices. The lease commenced in July 2022 with a lease term through 2029, with an option to terminate the lease after a 4-year term following a 12-month notice in advance, and an option to renew the lease to an additional 5-year term, through 2034. The Company deemed this option as reasonably certain to be renewed. Under IFRS 16, all leases with durations greater than 12 months, including non-cancellable operating leases, are now recognized on the statement of financial position. The aggregated present value of lease agreements is recorded as a long-term asset titled operating lease right-of-use assets. The corresponding lease liabilities are classified between operating lease liabilities which are current and long-term. Maturity analysis of undiscounted future lease payments for lease liabilities: December 31, 2023 2024 $ 5,309 2025 4,367 2026 3,265 2027 2,561 2028 2,086 2029 and thereafter 15,663 Total undiscounted cash flows $ 33,251 Less imputed interest (5,744 ) Present value of lease liabilities $ 27,507 a. Information on leases: Year ended December 31, 2022 2023 Expenses relating to operating lease costs $ 1,930 $ 2,225 Expenses relating to short-term leases $ 109 $ 62 Expenses relating to variable lease payments $ 2,753 $ 2,872 Total cash outflow for leases $ 4,792 $ 5,159 The following is a summary of weighted average remaining lease terms and discount rates for all of the Company’s operating leases: December 31, 2023 Weighted average remaining lease term (years) 11.80 Weighted average discount rate 3.89 % b. Disclosures in respect of right-of-use assets: Buildings Motor Total Cost: Balance as of January 1, 2022 $ 33,241 $ 3,505 $ 36,746 Additions during the year: New leases 4,881 1,468 6,349 Modification of leases 589 89 678 Adjustments for indexation 947 95 1,042 Adjustments arising from translating financial statements of foreign operations (1,228 ) 7 (1,221 ) Acquisition of subsidiaries 2,714 40 2,754 Disposals during the year: Termination of leases (692 ) (333 ) (1,025 ) Balance as of December 31, 2022 $ 40,452 $ 4,871 $ 45,323 Accumulated depreciation: Balance as of January 1, 2022 11,943 1,523 13,466 Additions during the year: Depreciation 3,151 1,169 4,320 Adjustments arising from translating financial statements of foreign operations 665 29 694 Disposals during the year: Termination of leases (509 ) (184 ) (693 ) Balance as of December 31, 2022 15,250 2,537 17,787 Depreciated cost at December 31, 2022 $ 25,202 $ 2,334 $ 27,536 Buildings Motor Total Cost: Balance as of January 1, 2023 $ 40,452 $ 4,871 $ 45,323 Additions during the year: New leases 1,150 1,575 2,725 Modification of leases 910 66 976 Adjustments for indexation 871 72 943 Adjustments arising from translating financial statements of foreign operations 37 212 249 Acquisition of subsidiaries 62 - 62 Disposals during the year: Termination of leases (298 ) (378 ) (676 ) Balance as of December 31, 2023 $ 43,184 $ 6,418 $ 49,602 Accumulated depreciation: Balance as of January 1, 2023 15,250 2,537 17,787 Additions during the year: Depreciation 3,689 1,470 5,159 Adjustments arising from translating financial statements of foreign operations 929 428 1,357 Disposals during the year: Termination of leases (192 ) (227 ) (419 ) Balance as of December 31, 2023 19,676 4,208 23,884 Depreciated cost at December 31, 2023 $ 23,508 $ 2,210 $ 25,718 |
Share Based Payments
Share Based Payments | 12 Months Ended |
Dec. 31, 2023 | |
Share Based Payments [Abstract] | |
SHARE BASED PAYMENTS | Note 15:- SHARE BASED PAYMENTS a. Stock Option Plans of the Company: Under the Company’s 2007 Stock Option Plan, as amended (“the 2007 Plan”), options may be granted to employees, officers, directors and consultants of the Company and its subsidiaries. Pursuant to the original 2007 Stock Option Plan, which is valid until August 1, 2027, the Company reserved 2,750,000 Ordinary shares for issuance. As of December 31, 2023, an aggregate of 952,500 Ordinary shares of the Company are available for future grants under the 2007 Plan. Each option granted under the 2007 Plan is exercisable for a period of ten years from the date of the grant of the option. The exercise price for each option is determined by the Board of Directors and set forth in the Company’s award agreement. Unless determined otherwise by the Board of Directors, the option exercise price shall be equal to or higher than the share market price at the grant date. The options generally vest over 3-4 years. Any option that is forfeited or canceled before expiration becomes available for future grants under the 2007 Plan. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the accelerated method over the requisite service period of each of the awards. The Company accounts for forfeitures as they occur. The Company uses the Binomial option-pricing model (“the Binomial model”) to estimate the fair value for any options granted. The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. The fair value of each option granted using the Binomial model, was estimated on the date of grant with the following assumptions: expected volatility was based upon actual historical stock price movements and was calculated as of the grant dates for different periods, since the Binomial model can be used for different expected volatilities for different periods. The risk-free interest rate was based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the contractual term of the options. The expected term of options granted was derived from the output of the option valuation model and represented the period of time that options granted were expected to be outstanding. Estimated forfeitures were based on actual historical pre-vesting forfeitures. Since dividend payments are applied to reduce the exercise price of the option, the effect of the dividend protection was reflected by using an expected dividend assumption of zero. No grants were made to employees or directors in 2022 and 2023. A summary of employee option activity under the 2007 Plan as of December 31, 2023 and changes during the year ended December 31, 2023 are as follows: Number Weighted Weighted Aggregate Outstanding at January 1, 2023 26,250 $ 0.91 5.95 $ 397 Exercised (6,250 ) 3.51 Forfeited (20,000 ) - Outstanding at December 31, 2023 - $ - - $ - Exercisable at December 31, 2023 - $ - - $ - The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on December 31, 2023. This amount is changed based on the market value of the Company’s Ordinary shares. Total intrinsic value of options exercised during the years ended December 31, 2022 and 2023 was $344 and $61 respectively. b. Stock Option Plan of Comm-IT Solutions: Under the Comm-IT Solutions’ 2022 Stock Option Plan, (“Comm-IT Solutions 2022 Plan”), options may be granted to employees, officers, directors and consultants of the Company and its subsidiaries. Pursuant to Comm-IT Solutions 2022 Plan, Comm-IT Technology Solutions Ltd. (“Comm-IT Solutions”) In December 2022, Magic’s Israeli subsidiary, Comm-IT Technology Solutions Ltd., awarded 12 of its senior officers 4,028 options to purchase 4,028 shares of Comm-IT Solutions, at an exercise price ranging between $0.28-$1,822. 827 of the options fully vested upon their grant, whereas the vesting of the remainder of the options are subject to Comm-IT Solutions and its subsidiaries meeting certain EBITDA targets to be achieved by one of the years 2023-2024. In 2023, CommIT fully achieved plan EBITDA targets. Subject to the achievement of the EBITDA targets, as well as the officers continued employment with Comm-IT Solutions throughout 2027, the options will vest at certain points in time throughout the years 2024 to 2027. A summary of employee option activity under the Comm-IT Solutions 2022 Plan as of December 31, 2023 and changes during the year ended December 31, 2023 are as follows: Number Weighted Weighted Aggregate Outstanding at January 1, 2023 4,028 $ 264.67 7.94 $ 7,499 Granted - - Outstanding at December 31, 2023 4,028 256.79 6.94 7,276 Exercisable at December 31, 2023 1,847 $ 27.72 6.93 $ 3,760 As of December 31, 2023, there was $1,465 of total unrecognized compensation cost related to non-vested options, which is expected to be recognized in full over a weighted average period of 1.1 years. The options outstanding as of December 31, 2023, have been separated into exercise price categories, as follows: Exercise price Options Weighted Options Weighted In $ 0.28 3,238 6.92 1,736 $ 0.28 455 297 6.99 111 455 1,822 493 6.99 - - 4,028 6.94 1,847 $ 27.72 The fair value of the options granted in 2022 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2022 Share price $2,110 Contractual life 8 years Expected exercise factor 1.5 Dividend yield 0% Expected volatility (weighted average) 41% Risk-free interest rate 3.28%-3.65% Fair value of option at the grant date $1,078-$2,126 c. Cost of share-based payment: During the years ended December 31 2021, 2022 and 2023 the Company share-based payment expense under the 2007 plan and CommIT Solution 2022 amounted to $956, $2,079 and $3,798, respectively, as follows: Year ended December 31, 2021 2022 2023 Selling and marketing expenses $ 956 $ (56 ) $ (225 ) General and administrative expenses - 2,135 4,023 $ 956 $ 2,079 $ 3,798 |
Employee Benefit Liabilities
Employee Benefit Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Liabilities [Abstract] | |
EMPLOYEE BENEFIT LIABILITIES | NOTE 16:- EMPLOYEE BENEFIT LIABILITIES Employee benefits consist of post-employment benefits and termination benefits. a) Post-employment benefits According to the labor laws and Severance Pay Law in Israel, the Israeli companies in the Group are required to pay compensation to an employee upon dismissal or retirement or to make current contributions in defined contribution plans pursuant to section 14 to the Severance Pay Law, as specified below. These liabilities are accounted for as a post-employment benefit. The computation of the employee benefit liability is made according to the current employment contract based on an employee’s salary and employment term which establish the entitlement to receive the compensation. The post-employment employee benefits are normally financed by contributions classified as a defined benefit plan or as a defined contribution plan, as detailed below. 1) Defined contribution plans Section 14 of the Severance Pay Law, 1963 applies to part of the compensation payments, pursuant to which the fixed contributions paid into pension funds and/or policies of insurance companies release the Company from any additional liability to employees for whom said contributions were made. These contributions and contributions for benefits represent defined contribution plans. Severance expenses for the years 2021, 2022 and 2023 were $5,267, $7,078 and $5,464, respectively. 2) U.S. employees defined contribution plan The Company’s U.S. Subsidiaries have a 401(k) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The U.S. Subsidiary matches up to 3% of employee contributions up to the plan with no limitation. 3) Defined benefit plans The Company accounts for that part of the payment of compensation that is not covered by contributions in defined contribution plans, as above, as a defined benefit plan for which an employee benefit liability is recognized and for which the Company deposits amounts in central severance pay funds and in qualifying insurance policies. b) Composition of defined benefit plans is as follows: December 31, 2022 2023 Defined benefit obligation $ 2,476 $ 2,665 Fair value of plan assets (1,575 ) (1,549 ) Net defined benefit liability $ 901 $ 1,116 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17:- COMMITMENTS AND CONTINGENCIES a. Guarantees and Collaterals: As of December 31, 2023, the Company has provided performance bank guarantees as security for the performance of various contracts with customers as well as to secure future payments in respect of lease agreements in the amount of $1,776 and $902, respectively. As of December 31, 2023, the Company has restricted bank deposits of $728 in favor of the issuing banks. b. From time to time, the Company and/or its subsidiaries are subject to legal, administrative and regulatory proceedings, claims, demands and investigations in the ordinary course of business, including claims with respect to intellectual property, contracts, employment and other matters. The Company accrues a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. These accruals are reviewed and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Lawsuits have been brought against the Company in the ordinary course of business. The Company intends to defend itself vigorously against those lawsuits. In September 2016, an Israeli software company, that was previously involved in an arbitration proceeding with us in 2015 and won damages from us of $2.4 million, filed a lawsuit seeking damages of NIS 34,106 against the Company and one its subsidiaries. This lawsuit was filed as part of an arbitration proceeding. In the lawsuit, the software company claimed that warning letters that the Company sent to its clients in Israel and abroad, warning those clients against the possibility that the conversion procedure offered by the software company may amount to an infringement of the Company’s copyrights (the “Warning Letters”), as well as other alleged actions, have caused the software company damages resulting from loss of potential business. The lawsuit is based on rulings given in the 2015 arbitration proceeding in which it was allegedly ruled that the Warning Letters constituted a breach of a non-disclosure agreement (NDA) signed between the parties. The Company rejected the claims by the Israeli software company and moved to dismiss the lawsuit entirely. In July 2021, an arbitrator assigned to the case rendered his decision and determined that the Company should pay the plaintiffs damages in the amount of $1.6 million, which was paid in August 2021 and included in the Company’s results of operations for the year ended December 31, 2021. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
EQUITY | Note 18:- equity a. The Ordinary shares of the Company are listed on the NASDAQ Global Select Market in the United States and are traded on the Tel-Aviv Stock Exchange in Israel. b. Accumulated other comprehensive loss: December 31, 2022 2023 Accumulated foreign currency translation adjustments (6,585 ) (10,340 ) Accumulated unrealized gain on derivative instruments, net 26 26 Total other comprehensive income (loss) $ (6,559 ) $ (10,314 ) c. Dividend distribution policy On August 9, 2017, the Company’s Board of Directors decided to amend the dividend distribution policy announced in 2012. According to the Company’s amended policy, each year the Company will distribute a dividend of up to 75% of its annual distributable profits. The Company’s Board of Directors may at its discretion and at any time, change, whether as a result of a one-time decision or a change in policy, the rate of dividend distributions and/or decide not to distribute a dividend, all at its discretion. On March 8, 2021, the Company declared a dividend distribution of $0.21 per share ($10,297 in the aggregate) which was paid on April 7, 2021. On August 12, 2021, the Company declared a dividend distribution of $0.23 per share ($11,480 in the aggregate) which was paid on September 14, 2021. On March 2, 2022, the Company declared a dividend distribution of $0.216 per share ($10,612 in the aggregate) which was paid on April 7, 2022. On August 11, 2022, the Company declared a dividend distribution of $0.29 per share ($14,237 in the aggregate) which was paid on September 13, 2022. On March 9, 2023, the Company declared a dividend distribution of $0.3 per share ($14.7 million in the aggregate) which was paid on April 20, 2023. On August 14, 2023, the Company declared a dividend distribution of $0.327 per share ($16.1 million in the aggregate) which was paid on September 13, 2023. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax [Abstract] | |
INCOME TAX | Note 19:- INCOME tax a. Israeli taxation: 1) Corporate tax rate in Israel Taxable income of Israeli companies was generally subject to corporate tax at the rate of 23% in 2022 and 2023. Some of our Israeli subsidiaries are eligible for certain tax benefits, as described below. 2) Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 (the “Law”): Amendment 73 to the law: In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years) 2016, which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the 2017 Amendment”) was published and was pending the publication of regulations, in May 2017 regulations were promulgated by the Finance Ministry to implement the “Nexus Principles” based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Following the publication of the regulations the 2017 Amendment became fully effective. According to the 2017 Amendment, a Preferred Technological Enterprise, as defined in the 2017 Amendment, with total consolidated revenues less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A—a tax rate of 7.5%). In order to qualify as a Preferred technological enterprise certain criterion must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenues derived from exports. The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a Special Preferred Technology Enterprise (“SPTE”) (an enterprise for which, among others, total consolidated revenues of its parent company and all subsidiaries is at least NIS 10 billion) and will thereby enjoy a reduced corporate tax rate of 6% on PTI regardless of the company’s geographic location within Israel. In addition, a SPTE will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefited Intangible Assets” to a related foreign company if the Benefited Intangible Assets were either developed by the Special Preferred Technology Enterprise or acquired from a foreign company on or after January 1, 2017. Starting from 2017 under Amendment 73 to the Investment Law, part of the Company’s taxable income in Israel is entitled to a preferred 12% tax rate. Since 2019, under SPTE the tax rate for part of the Company’s taxable income in Israel has been reduced to a 6% corporate tax rate. One of Company’s Israeli subsidiaries has elected to apply the new incentives regime under the Amendment to their industrial activity in Israel, subject to meeting its requirements, starting in 2011. In 2015, the Company transitioned to the preferred enterprise track entitling it to a preferred 16% tax rate under Amendment 73 to the Investment Law. Amendment 74 to the Encouragement Law: On November 15, 2021, the Economic Efficiency Law (Legislative Amendments for Achieving Budget Targets for the 2021 and 2022 Budget Years), 2021 (the “Economic Efficiency Law”), was enacted. This Law establishes a temporary order allowing Israeli companies to release tax-exempt earnings (“trapped earnings” or “accumulated earnings”) accumulated until December 31, 2020, through a mechanism established for a reduced corporate income tax rate applicable to those earnings (the “Temporary Order”). In addition to the reduced corporate income tax (CIT) rate, Article 74 to the Encouragement Law was amended whereby effective from August 15, 2021, for any dividend distribution (including a dividend as per Article 51B to the Encouragement Law) by a company which has trapped earnings, there will be a requirement to allocate a portion of that distribution to the trapped earnings. The tax-exempt income is attributable to certain Group members’ previous status as “Approved Enterprise” and “Benefited Enterprise”. Such tax-exempt income cannot be distributed to shareholders without subjecting the Company to payable income taxes. If dividends are distributed from previous tax-exempt profits, the Company will be liable for income tax at the rate applicable to its profits from the Approved Enterprise in at the tax rate enacted in the year in which the income was earned. According to the Temporary Order, the reduction of CIT will apply to earnings that are released (with no requirement for an actual distribution) within a period of one year from the date of enactment of the Temporary Order. The reduction in the CIT is dependent on the proportion of the trapped earnings that are released in relation to the total trapped earnings, and on the applicable CIT rate in the years the earnings were generated. Consequently, the larger the proportion of the trapped earnings that are released, the lower the tax in respect of the distribution. The minimum tax rate is 6%. Further, a company that elects to pay a reduced CIT is required to invest in its industrial enterprise a designated amount in accordance with the Economic Efficiency Law within a period of five years commencing from the tax year in which the election is made. The designated investment should be utilized for the acquisition of production assets, and/or investments in research and development and/or compensation to additional new employees. In November 2022, the Company elected to benefit from the Temporary Order and filed its application for the Temporary Order and paid the required reduced CIT as per the provisions of the Economic Efficiency Law in respect of its total accumulated tax-exempt earnings amounting to NIS 25,022 (approximately $7,100), and accordingly recognized a tax expense of NIS 2,502 (approximately $711). As of December 31, 2022, all the trapped earnings were released. The Company and its subsidiaries have received final tax assessments (or assessments that are deemed final) through the year 2018. Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969: The Company qualifies as an Industrial Company within the meaning of the Law for the Encouragement of Industry (Taxes), 1969 (the “Industrial Encouragement Law”). The Industrial Encouragement Law defines an “Industrial Company” as a company that is resident in Israel and that derives at least 90% of its income in any tax year, other than income from defense loans, capital gains, interest and dividends, from an enterprise whose major activity in a given tax year is industrial production. Under the Industrial Encouragement Law, the Company is entitled to amortization of the cost of purchased know-how and patents over an eight-year period for tax purposes as well as accelerated depreciation rates on equipment and buildings. Eligibility for the benefits under the Industrial Encouragement Law is not subject to receipt of prior approval from any governmental authority. 3) Foreign Exchange Regulations: Under the Foreign Exchange Regulations, the Company and one of its Israeli subsidiaries calculate their tax liability in U.S. dollars according to certain orders. The tax liability, as calculated in U.S. dollars is translated into NIS according to the exchange rate as of December 31 of each year. 4) Income tax on non-Israeli subsidiaries Non-Israeli subsidiaries are taxed according to the tax laws in their respective domiciles of residence. If earnings are distributed to Israel in the form of dividends or otherwise, the Company may be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding tax rates. Neither Israeli income taxes, foreign withholding taxes nor deferred income taxes were provided in relation to undistributed earnings of the non-Israeli subsidiaries. This is because the Company intends to permanently reinvest undistributed earnings in the foreign subsidiaries in which those earnings arose. If these earnings were distributed in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and non-Israeli withholding taxes. As of December 31, 2023, the Company had $27,134 of cash and cash equivalents that are currently held outside of Israel that would be subject to income taxes if distributed as dividends. However, a determination of the amount of the unrecognized deferred tax liability for temporary difference related to those undistributed earnings of foreign subsidiaries is not practicable due to the complexity of the structure of our group of subsidiaries for tax purposes and the difficulty of projecting the amount of future tax liability. 5) Net operating loss carried forward: As of December 31, 2023, two Israeli subsidiaries of the Company had operating loss carryforwards of $9,874 (mainly F.T.S Formula Telecom Solutions, Ltd. which accounts for $9,225), which can be carried forward to offset against taxable income in the future for an indefinite period. One of the Company’s subsidiaries in England had estimated total available tax loss carryforwards of $3,684 as of December 31, 2023, which can be carried forward to offset against future taxable income. Two of the Company’s subsidiaries in U.S. had estimated total available tax loss carryforwards of $13,898 as of December 31, 2023, which can be carried forward to offset against future taxable income. 6) Presentation of net deferred tax assets and liabilities, in the consolidated statements of financial position: December 31, 2022 2023 Deferred taxes assets $ 3,618 $ 6,729 Deferred tax liabilities (10,686 ) (11,610 ) $ (7,068 ) $ (4,881 ) 7) Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2022 2023 Deferred tax liabilities: Intangible assets $ 12,311 $ 13,789 Reserves and allowances 1,142 530 Right-of-use assets 5,133 5,169 Gross deferred tax liabilities $ 18,586 $ 19,488 Deferred tax assets: Carry-forwards losses $ 349 $ 3,668 Intangible assets 540 1,495 Reserves and allowances 5,628 4,054 Lease liabilities 5,001 5,390 Gross deferred tax assets $ 11,518 $ 14,607 Net deferred tax liabilities $ (7,068 ) $ (4,881 ) 8) Income tax (tax benefit) consist of the following: Year ended December 31, 2021 2022 2023 Current: Domestic $ 7,847 $ 11,368 $ 11,108 Foreign 6,123 6,304 5 13,970 17,672 11,113 Deferred taxes: Domestic (1,149 ) (1,318 ) (1,588 ) Foreign (2,543 ) (5,216 ) 409 (3,692 ) (6,534 ) (1,179 ) Taxes on income $ 10,278 $ 11,138 $ 9,934 9) Theoretical tax: The following table presents reconciliation between the theoretical tax expense, assuming that all income was taxed at statutory tax rates, and the actual income tax expense, as recorded in the Company’s consolidated statements of profit or loss: Year ended December 31, 2021 2022 2023 Income before income taxes, as per the statement of operations $ 45,617 $ 57,417 $ 52,436 Statutory tax rate in Israel 23 % 23 % 23 % Tax computed at the statutory tax rate 10,494 13,205 12,060 Tax adjustment in respect of different tax rates 283 (1,756 ) (1,345 ) Deferred taxes on losses for which deferred taxes were not created (80 ) (511 ) (2,764 ) Tax-deductible costs, not included in the accounting costs (1,041 ) (2,680 ) - Non-deductible expenses and tax expenses in respect of prior years, net 1,001 2,670 534 Uncertain tax positions and other (379 ) 210 1,448 Taxes on income $ 10,278 $ 11,138 $ 9,934 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | NOTE 20:- REVENUE RECOGNITION Remaining performance obligations represent contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. The aggregate amount of consideration allocated to performance obligations either not satisfied or partially unsatisfied was approximately $105.8 million as of December 31, 2023. The Company expects to recognize approximately 68% in 2024 from remaining performance obligations as of December 31, 2023, and the remainder thereafter. Remaining performance obligations include the remaining non-cancelable, committed and fixed portion of these contracts for their entire duration; the remaining performance obligations related to professional services contracts that are on a time and materials basis were excluded, as the Company elected to apply the practical expedient in accordance with IFRS 15. Contract balances The following table provides information about trade receivables, unbilled receivables, contract assets, and contract liabilities (deferred revenues) from contracts with customers (in thousands): December 31, 2022 2023 Trade receivables (net of allowance for credit losses of $5,416 and $7,066 at December 31, 2022 and 2023, respectively) $ 118,126 $ 108,385 Unbilled receivables 26,114 15,953 Contract assets 4,240 6,760 Long-term unbilled receivables *) 2,548 2,240 Long-term trade receivables *) 735 1,029 Deferred revenues (short-term contract liabilities) $ 9,808 $ 13,537 *) Included in Other long-term receivables in the consolidated statements of financial position. An analysis of past due but not impaired trade receivables with reference to reporting date: Past due trade receivables with aging of Neither Up to 30 31-60 61-90 91-120 Over 121 Total Unpaid Allowance Total trade December 31, 2022 $ 67,793 $ 24,150 $ 16,869 $ 12,863 $ 4,125 $ 13,311 $ 139,111 $ (15,569 ) $ (5,416 ) $ 118,126 December 31, 2023 $ 71,545 $ 30,191 $ 7,065 $ 3,407 $ 1,801 $ 15,818 $ 129,826 $ (14,375 ) $ (7,066 ) $ 108,385 Trade receivables are recorded when the right to consideration becomes unconditional, and an invoice is issued to the customer. Billing terms and conditions generally vary by contract type. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. Unbilled receivables relate to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to its fulfilled obligations. Contract assets relate to unbilled receivables, which represent revenue recognized on arrangements for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date, and the right to consideration is generally subject to milestone completion, client acceptance or factors other than the passage of time. Deferred revenues represent contract liabilities, and include unearned amounts received under contracts with customers and not yet recognized as revenues. During the year ended December 31, 2023, the Company recognized $9,808 that was included in deferred revenues (short-term contract liability) balance at December 31, 2022. Revenue by timing of revenue recognition was as follows: Year ended December 31, 2021 2022 2023 Products and services transferred over time $ 449,391 $ 533,862 $ 502,358 Products transferred at a point in time 30,934 32,930 32,694 480,325 566,792 535,052 |
Selected Statements of Income D
Selected Statements of Income Data | 12 Months Ended |
Dec. 31, 2023 | |
Selected Statements of Income Data [Abstract] | |
SELECTED STATEMENTS OF INCOME DATA | NOTE 21:- SELECTED STATEMENTS OF INCOME DATA a. Research and development costs, net: Year ended December 31, 2021 2022 2023 Total costs $ 12,188 $ 13,149 $ 13,511 Less - capitalized software costs (3,193 ) (3,059 ) (3,183 ) Research and development, net $ 8,995 $ 10,090 $ 10,328 b. Selling and marketing expenses: Year ended December 31, 2021 2022 2023 Salary and related expenses $ 26,100 $ 33,474 $ 31,188 Advertising expenses 2,522 2,676 2,802 Cost of share-based payment 956 (56 ) (225 ) Others 8,569 10,763 10,735 Total selling and marketing expenses $ 38,147 $ 46,857 $ 44,500 c. General and administrative expenses: Year ended December 31, 2021 2022 2023 Salary and related expenses 24,072 $ 21,492 $ 27,425 Subcontractors 3,842 5,335 4,726 Cost of share-based payment - 2,135 4,023 Others 3,308 8,590 4,637 Total general and administrative expenses 31,222 $ 37,552 $ 40,811 d. The following table provides detailed breakdown of the Company’s financial income and expenses: Year ended December 31, 2021 2022 2023 Financial expenses: Interest expenses on loans and borrowings 615 1,743 5,039 Interest expenses attributed to leases 719 691 964 Bank charges, negative foreign exchange differences and other financial expenses 2,468 2,559 3,224 3,802 4,993 9,227 Financial income: Interest income attributed to bank deposits 36 305 1,166 Interest income from deposits, positive foreign exchange differences and other financial income 77 1,087 3,735 113 1,392 4,901 Financial expenses, net $ 3,689 $ 3,601 $ 4,326 e. Earnings per share: The following table presents the computation of basic and diluted net earnings per share for the Company: Year ended December 31, 2021 2022 2023 Numerator: Net income attributable to Magic shareholders $ 29,767 $ 40,470 $ 37,031 Denominator: Basic earnings per share - weighted average shares outstanding 49,055,082 49,089,044 49,095,760 Effect of dilutive securities 44,972 42,267 2,660 Diluted earnings per share – adjusted weighted average shares outstanding 49,100,054 49,131,311 49,098,420 Basic and diluted net earnings per share 0.61 0.82 0.75 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
OPERATING SEGMENTS | Note 22: - operating segments a. The Company reports its results on the basis of two reportable business segments: software services (which include proprietary and non-proprietary software technology) and IT professional services. T he Company’s chief operating decision maker is the Chief Executive Officer who makes operating decisions, assesses performance and allocates resources on a consolidated basis. The Company evaluates segment performance based on revenues and operating income of each segment. The accounting policies of the operating segments are the same as those described in the summary of material accounting policies. Headquarters’ general and administrative costs have not been allocated between the different segments. Software services The Company develops markets, sells and supports a proprietary and none proprietary application platform, software applications, business and process integration solutions and related services. IT professional services The Company offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. There are no significant transactions between the two segments. b. The following is information about reported segment results of operation: Software IT Unallocated Total 2021 Total revenues $ 95,589 $ 384,736 - $ 480,325 Expenses 74,863 347,712 5,627 428,202 Operating income (loss) $ 20,726 $ 37,024 $ (5,627 ) $ 52,123 Depreciation and amortization $ 10,619 $ 8,846 $ 372 $ 19,837 2022 Total revenues $ 99,374 $ 467,418 $ - $ 566,792 Expenses 72,115 427,446 5,469 505,030 Operating income (loss) $ 27,259 $ 39,972 $ (5,469 ) $ 61,762 Depreciation and amortization $ 10,321 $ 9,102 $ 372 $ 19,795 2023 Total revenues $ 92,906 $ 442,146 $ - $ 535,052 Expenses 71,863 400,949 5,132 477,944 Operating income (loss) $ 21,043 $ 41,197 $ (5,132 ) $ 57,108 Depreciation and amortization $ 9,717 $ 10,432 $ 404 $ 20,553 c. The Company’s business is divided into the following geographic areas: United States, Israel, Europe, Japan and other regions. Total revenues are attributed to geographic areas based on the location of the customers. The following table presents total revenues classified according to geographical destination for the years ended December 31 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 United States $ 254,342 $ 308,485 $ 250,842 Israel 180,462 205,258 214,129 Europe 30,085 39,247 55,180 Japan 11,443 10,121 10,847 Other 3,993 3,681 4,054 Total revenues $ 480,325 $ 566,792 $ 535,052 d. The Company’s long-lived assets are located as follows: December 31, 2021 2022 2023 United States $ 76,369 $ 82,325 $ 77,120 Israel 138,071 148,819 158,144 Europe 4,423 7,885 7,596 Japan 5,543 4,696 4,222 Other 2,939 2,905 3,347 $ 227,345 $ 246,630 $ 250,429 e. The Company does not allocate its assets or liabilities to its reportable segments; accordingly, asset or liabilities information by reportable segments is not presented. f. In 2022 and 2023, the Company had one major customer, included in the IT professional services segment, which accounted for 15% and 11.2% of the Company revenues, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 23:- SUBSEQUENT EVENTS On April 4, 2024, the Company acquired Theoris, Inc. (“Theoris”), a U.S. based full-services company, specializes in IT staffing and recruiting, for a total consideration of $12.5 million, of which $10 million was paid upon closing and the remaining $2.5 million was payable in two equal installments following the first- and second-year anniversaries. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation of the financial statements | 1) Basis of presentation of the financial statements These financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). Measurement basis: The Company’s consolidated financial statements are prepared on a cost basis, except for financial assets measured at fair value through other comprehensive income (“OCI”), provisions, employee benefit assets and liabilities, and financial assets and liabilities which are presented at fair value through profit or loss. (See Note 6). The Company has elected to present the profit or loss items using the function of expense method. |
Use of estimates, judgments and assumptions | 2) Use of estimates, judgments and assumptions: The preparation of the consolidated financial statements requires management to make estimates, judgments, and assumptions, that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities, revenues and expenses in the financial statements. Such judgments, estimates and assumptions are related, but not limited to liabilities in respect of business combinations, goodwill and intangible assets and their subsequent impairment analysis, determination of fair value of put options of non-controlling interests, legal contingencies, research and development capitalization as well as amortization periods, classification of leases as well as the determination of the lease term and the incremental borrowing rate, income tax uncertainties, share-based compensation, as well as the determination of revenue recognition from contracts accounted for based on the estimate of percentage of completion, identification of performance obligations and the determination of the transaction price as well as the standalone selling prices, and evaluating expected credit losses (“ECL”). The Company’s management believes that the estimates, judgments, and assumptions used, are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Changes in accounting estimates are reported in the period of the change in estimate. |
Consolidated financial statements | 3) Consolidated financial statements: The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (subsidiaries). Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Potential voting rights are considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. |
Non-controlling interests | 4) Non-controlling interests Non-controlling interests in subsidiaries, represent the equity in subsidiaries not attributable, directly or indirectly, to a parent. Non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Profit or loss and components of other comprehensive income are attributed to the Company and to non-controlling interests. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statement of financial position. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as a change in equity by adjusting the carrying amount of the non-controlling interests with a corresponding adjustment of the equity attributable to equity holders of the Company less / plus the consideration paid or received. |
Business combinations and goodwill | 5) Business combinations and goodwill: Business combinations are accounted for by applying the acquisition method. The cost of the acquisition is measured at the fair value of the consideration transferred on the acquisition date with the addition of non-controlling interests in the acquiree. In each business combination, the Company chooses whether to measure the non-controlling interests in the acquiree based on their fair value on the acquisition date or at their proportionate share in the fair value of the acquiree’s net identifiable assets. A put option granted by the Group to non-controlling interests is accounted for using the expected purchase approach under the presumption that the put option will be exercised, and therefore the parent effectively holds an interest in the subsidiary’s shares as if the put option had been exercised. A put option granted by the Group to non-controlling interests for which the consideration to be paid in cash or other financial asset is recognized as a liability in the amount of the present value of the option’s exercise price. Contingent consideration is recognized at fair value on the acquisition date and classified as a financial asset or liability in accordance with IFRS 9. Subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. Goodwill is initially measured at cost which represents the excess of the acquisition consideration and the amount of non-controlling interests over the net identifiable assets acquired and liabilities assumed. If the resulting amount is negative, the acquirer recognizes the resulting gain on the acquisition date. |
Functional currency and presentation currency | 6) Functional currency and presentation currency: The presentation currency of these financial statements is the U.S dollar (the “dollar”), since the Company believes that financial statements in U.S dollars provide more relevant information to its investors and users of the financial statements. Also, the dollar is the currency of the primary economic environment in which the Company and certain subsidiaries operate. Thus, the functional and reporting currency of the Company and certain subsidiaries is the dollar. The functional currency of each subsidiary represents the primary economic environment in which each subsidiary operates. |
Revenue recognition | 7) Revenue recognition: Revenue from contracts with customers is recognized when control of the promised goods or services are transferred to the customers. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). The Company enters into contracts that can include various combinations of products, software and professional services, as detailed below, which are generally distinct from each other and accounted for as separate performance obligations. The Company derives its revenues from licensing the rights to use its software (proprietary and non-proprietary), provision of related professional services, maintenance and technical support as well as from other software and IT professional services (either fixed price or based on time and materials). The Company sells its products primarily through direct sales force and indirectly through distributors and value-added resellers. The Company recognizes revenue when or as it satisfies a performance obligation by transferring software license or software related services to the customer, either at a point in time or over time. When the Company enters into a contract for the sale of a software license which does not require significant implementation services and the customer receives the rights to use the perpetual or term-based software license, the Company recognizes revenue from the sale of the software license at the time of delivery, when the customer receives control of the software license. The software license is considered a distinct performance obligation recognized at a point-in-time, as the customer can benefit from the software on its own or together with other readily available resources. Revenue from long-term contracts which involve significant implementation, customization, or integration of the Company’s software license to customer-specific requirements are considered as one performance obligation satisfied over-time. The underlying deliverable is owned and controlled by the customer and does not create an asset with an alternative use to the Company. The Company recognizes revenue of such contracts over time using cost inputs, which recognize revenue and gross profit as work is performed based on a ratio between actual costs incurred compared to the total estimated costs for the contract, to measure progress toward completion of its performance obligations. In addition, the Company provides professional services that do not involve significant customization to customer-specific specifications (typically staffing or consulting services). The revenue is recognized as the services are performed, either on a straight-line basis or based on the hours of services (time and material) that were provided to the customer, in accordance with the terms of the contracts. The Company’s revenues from post contract support are derived from annual maintenance contracts providing for unspecified upgrades for new versions and enhancements on a when-and-if-available basis for an annual fee, as well as technical support for software licenses previously sold. The right for an unspecified upgrade for new versions and enhancements on a when-and-if-available basis do not specify the features, functionality and release date of future product enhancements for the customer to know what will be made available and the general timeframe in which it will be delivered. The Company considers the post contract support performance obligation as a distinct performance obligation that is satisfied over time and recognized on a straight-line basis over the contractual period. Revenues from professional services, both related to software and IT professional services businesses consists of either fixed price or time and materials, are considered performance obligations that are satisfied over time and revenues are recognized as the services are provided. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Stand-alone selling prices of software licenses are typically estimated using the residual approach. Stand-alone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. When another party is involved in providing goods or services to the customer, the Company examines whether the nature of its promise is a performance obligation to provide the defined goods or services itself, which means the Company is a principal and therefore recognizes revenue in the gross amount of the consideration, or to arrange that another party provide the goods or services which means the Company is an agent and therefore recognizes revenue in the amount of the net commission. The Company is a principal when it controls the promised goods or services before their transfer to the customer. Indicators that the Company controls the goods or services before their transfer to the customer include, inter alia, as follows: the Company is responsible for fulfilling the promises in the contract; the Company has inventory risk before the goods or services are transferred to the customer; and the Company has discretion in setting the prices of the goods or services. Revenue from third-party sales is recorded at a gross or net amount according to certain indicators. The application of these indicators for gross and net reporting of revenue depends on the relative facts and circumstances of each sale. The Company pays commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales or profit goals. The Company expenses sales commissions as they are incurred when the amortization period would have been less than one year. In addition, generally, sales commissions which are paid upon contract renewal are commensurate with the initial commissions as the renewal amounts are substantially identical to the initial commission costs. During the years ended December 31, 2023 and 2022, no costs have been capitalized. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. |
Income tax | 8) Income tax: Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity. ● Current taxes: The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date as well as adjustments required in connection with the tax liability in respect of previous years. ● Deferred taxes: Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes. Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Deductible carryforward losses and temporary differences for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that their utilization is probable. Taxes that would apply in the event of the disposal of investments in investees have not been considered in computing deferred taxes, as long as the disposal of the investments in investees is not probable in the foreseeable future. Also, deferred taxes that would apply in the event of distribution of earnings by investees as dividends have not been considered in computing deferred taxes, since the distribution of dividends does not involve an additional tax liability or since it is the Company’s policy not to initiate distribution of dividends from a subsidiary that would trigger an additional tax liability. Taxes on income that relate to distributions of an equity instrument and to transaction costs of an equity transaction are accounted for pursuant to IAS 12. Deferred taxes are offset if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority. ● Uncertain tax position: A provision for uncertain tax positions, including additional tax and interest expenses, is recognized when it is more likely than not that the Company will have to use its economic resources to pay the obligation. |
Leases | 9) Leases: The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration. i) The Company as lessee For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to twelve months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract. Leases which entitle employees to a company car as part of their employment terms are accounted for as employee benefits in accordance with the provisions of IAS 19 and not as subleases. On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company’s incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method. On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term. Following are the amortization periods of the right-of-use assets by class of underlying asset: Years Mainly Land and buildings 1-12 3 Motor vehicles 1-5 3 The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36. ii) Lease extension and termination options A non-cancelable lease term includes both the periods covered by an option to extend the lease when it is reasonably certain that the extension option will be exercised and the periods covered by a lease termination option when it is reasonably certain that the termination option will not be exercised. In the event of any change in the expected exercise of the lease extension option or in the expected non-exercise of the lease termination option, the Company remeasures the lease liability based on the revised lease term using a revised discount rate as of the date of the change in expectations. The total change is recognized in the carrying amount of the right-of-use asset until it is reduced to zero, and any further reductions are recognized in profit or loss. |
Property, plant and equipment, net | 10) Property, plant and equipment, net: Property, plant and equipment are measured at cost, including directly attributable costs, less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets at annual rates as follows: Years Software 3-5 (mainly 5) Computers and peripheral equipment 3-5 Office furniture and equipment 7-15 (mainly 7) Motor vehicles 7 Leasehold improvements are amortized using the straight-line method over the term of the lease (including option terms that are deemed to be reasonably assured) or the estimated useful life of the improvements, whichever is shorter. The useful life, the depreciation method and the residual value of an asset are reviewed at least each year-end (at the end of the year) and any changes are accounted for prospectively as a change in accounting estimate. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized. |
Intangible assets | 11) Intangible assets: Separately acquired intangible assets are measured on initial recognition at cost, including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Expenditures relating to internally generated intangible assets, excluding capitalized development costs, are recognized in profit or loss when incurred. Intangible assets with a finite useful life are amortized over their useful life and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year end. Research and development expenditures Research expenditures incurred in the process of software development are recognized in profit or loss when incurred. An intangible asset arising from a software development project or from the development phase of an internal project is recognized if the Company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company’s intention to complete the intangible asset and use or sell it; the ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the ability to measure reliably the respective expenditure asset during its development. The Company establishes technological feasibility upon completion of a detailed program design or a working model. Capitalized software costs are measured at cost less any accumulated amortization and any accumulated impairment losses on a product-by-product basis. Amortization of capitalized software costs begin when development is complete, and the product is available for use or for sale. The Company considers a product to be available for use when the Company completes its internal validation of the product that is necessary to establish that the product meets its design specifications including functions, features, and technical performance requirements. Internal validation includes the completion of coding, documentation and testing that ensure bugs are reduced to a minimum. The internal validation of the product takes place a few weeks before the product is made available to the market. In certain instances, the Company enters into a short pre-release stage, during which the product is made available to a selected number of customers as a beta program for their own review and familiarization. Subsequently, the release is made generally available to customers. Once a product is considered available for use, the capitalization of costs ceases and amortization of such costs to “cost of sales” begins. Capitalized software costs are amortized on a product-by-product basis by the straight-line method over the estimated useful life of the software product (between 3-5 years). Research and development costs incurred in the process of developing product enhancements are generally charged to expenses as incurred. The Company assesses the recoverability of its capitalized software costs on a regular basis by assessing the net realizable value of these intangible assets based on the estimated future gross revenues from each product reduced by the estimated future costs of completing and disposing of it, including the estimated costs of performing maintenance and customer support over its remaining economical useful life using internally generated projections of future revenues generated by the products, cost of completion of products and cost of delivery to customers over its remaining economical useful life. During the years ended December 31, 2021, 2022 and 2023, no such unrecoverable amounts were identified. Other intangible assets Intangible assets excluding capitalized development costs are comprised mainly of customer-related intangible assets, backlogs, acquired technology and patent, and are amortized over their useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. The useful life of intangible assets is as follows: Years Customer relationships Up to 15 Acquired technology Up to 10 (mainly 5) The useful life of these assets is reviewed annually to determine whether their indefinite life assessment continues to be supportable. If the events and circumstances do not continue to support the assessment, the change in the useful life assessment from indefinite to finite is accounted for prospectively as a change in accounting estimate, and on that date the asset is tested for impairment. Commencing from that date, the asset is amortized systematically over its useful life. |
Impairment of non-financial assets | 12) Impairment of non-financial assets: The Company evaluates the need to record an impairment of non-financial assets (property, plant and equipment, capitalized software costs and other intangible assets, goodwill) whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated, at the acquisition date, to each of our cash-generating units that are expected to benefit from the synergies of the combination. The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment. Goodwill is tested for impairment by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the goodwill has been allocated. An impairment loss is recognized if the recoverable amount of the cash-generating unit (or group of cash-generating units) to which goodwill has been allocated is less than the carrying amount of the cash-generating unit (or group of cash-generating units). Any impairment loss is allocated first to goodwill. Impairment losses recognized for goodwill cannot be reversed in subsequent periods. During the years ended December 31, 2021, 2022 and 2023, no impairment loss was identified. |
Financial instruments | 13) Financial instruments: The accounting policy for financial instruments in accordance with IFRS 9, “Financial Instruments” is as follows: 1. Financial assets Financial assets are measured upon initial recognition at fair value plus transaction costs that are directly attributable to the acquisition of the financial assets, except for financial assets measured at fair value through profit or loss in respect of which transaction costs are recorded in profit or loss. Impairment of financial assets: The Company evaluates at the end of each reporting period the loss allowance for financial debt instruments which are not measured at fair value through profit or loss. An impairment loss on debt instruments measured at amortized cost is recognized in profit or loss with a corresponding loss allowance that is offset from the carrying amount of the financial asset. The Company has short-term financial assets such as trade receivables in respect of which the Company applies a simplified approach in IFRS 9 and measures the loss allowance in an amount equal to the lifetime expected credit losses. Trade receivables include original invoiced amounts less an allowance for any potential uncollectible amounts and less invoiced amounts from maintenance and professional services contracts which haven’t been recognized yet . 2. Financial liabilities a) Financial liabilities measured at amortized cost: Financial liabilities are initially recognized at fair value less transaction costs that are directly attributable to the issue of the financial liability. After initial recognition, the Company measures all financial liabilities at amortized cost using the effective interest rate method, except for financial liabilities at fair value through profit or loss. b) Financial liabilities measured at fair value through profit or loss: At initial recognition, the Company measures financial liabilities that are not measured at amortized cost at fair value. Transaction costs are recognized in profit or loss. After initial recognition, changes in fair value are recognized in profit or loss, except for put option granted to non-controlling interests. Put option granted to non-controlling interests: When the Company grants to non-controlling interests a put option to sell part or all of their interests in a subsidiary, during a certain period, even if such purchase obligation is conditional on the counterparty’s exercise of its contractual right to cause such redemption, if the put option agreement does not transfer to the Company any benefits incidental to ownership of the equity instrument (i.e. the Company does not have a present ownership in the shares concerned) then at the end of each reporting period the non-controlling interests (to which a portion of net profit attributable to non-controlling interests is allocated) are classified as a financial liability, as if such put-able equity instrument was redeemed on that date. The difference between the non-controlling interests carrying amount at the end of the reporting period and the present value of the liability is recognized directly in equity of the Company, under “Additional paid-in capital”. The Company remeasures the financial liability at the end of each reporting period based on the estimated present value of the consideration to be transferred upon the exercise of the put option. If the option is exercised in subsequent periods, the consideration paid upon exercise is treated as settlement of the liability. If the put option expires, the liability is settled and a portion of the investment in the subsidiary disposed of, without loss of control therein. |
Fair value measurement: | 14) Fair value measurement: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - inputs other than quoted prices included within Level 1 that are observable directly or indirectly. Level 3 - inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data). All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement. |
Provisions | 15) Provisions: A provision in accordance with IAS 37 is recognized when the Company has a present (legal or constructive) obligation as a result of a past event, it is expected to require the use of economic resources to clear the obligation and a reliable estimate has been made. Following are the types of provisions included in the financial statements: i. Legal claims: A provision for claims is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is more likely than not that an outflow of resources embodying economic benefits will be required by the Company to settle the obligation and a reliable estimate can be made of the amount of the obligation. ii. Contingent liability recognized in a business combination: A contingent liability in a business combination is measured at fair value upon initial recognition. In subsequent periods, it is measured at the higher of the amount initially recognized less, when appropriate, cumulative amortization, and the amount that would be recognized at the end of the reporting period in accordance with IAS 37. |
Employee benefits | 16) Employee benefits: The Company maintains several employee benefit plans: i. Short-term employee benefits: Short-term employee benefits are benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services. These benefits include salaries, paid annual leave, paid sick leave, recreation and social security contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered by an employee and a reliable estimate of the amount can be made. ii. Post-employment benefits: The plans are normally financed by contributions to insurance companies and classified as defined contribution plans or as defined benefit plans. Magic and its Israeli subsidiaries (as defined with respect to their Israeli employee contribution plans pursuant to section 14 of Israel’s Severance Pay Law, 1963 (the “Severance Pay Law”)) pay fixed contributions to those plans and will have no legal or constructive obligation to pay further contributions if the fund into which those contributions are paid does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods. Contributions to the defined contribution plan in respect of severance or retirement pay are recognized as an expense when contributed concurrently with performance of the employee’s services. Magic and its Israeli subsidiaries also operate a defined benefit plan in respect of severance or retirement pay to their Israeli employees pursuant to the Severance Pay Law. According to the Severance Pay Law, employees are entitled to severance pay upon dismissal or retirement. In respect of its severance pay obligation to certain of its employees, the Company makes current deposits in pension funds and insurance companies (the “plan assets”). Plan assets comprise assets held by a long-term employee benefit fund or qualifying insurance policies. Plan assets are not available to the Company’s own creditors and cannot be returned directly to the Company. The liability for employee benefits shown in the statement of financial position reflects the present value of the defined benefit obligation, less the fair value of the plan assets. Remeasurements of the net liability are recognized in other comprehensive income in the period in which they occur. |
Share-based payment | 17) Share-based payment: The Company’s senior management are entitled to remuneration in the form of equity-settled share-based payment transactions. The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value is determined using an acceptable option pricing model. The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting period until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether the market condition is satisfied, provided that all other vesting conditions (service and/or performance) are satisfied. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the accelerated method over the requisite service period of each of the awards. The Company accounts for forfeitures as they occur. |
Concentration of credit risk | 18) Concentration of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, trade receivables and foreign currency derivative contracts. The majority of the Company’s cash and cash equivalents, bank deposits and other financial instruments are invested with major banks in Israel, the United States and across Europe. Management believes that these financial instruments are held in financial institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. Cash and cash equivalents and short-term deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, these banks deposits may be redeemed upon demand and therefore bear minimal risk. The Company’s trade receivables are generally derived from sales to large organizations located mainly in Israel, North America, Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers using a reliable outside source to determine payment terms and credit limits which are approved based on the size of the customer and to date has not experienced any material losses. In certain circumstances, Magic and its subsidiaries may require letters of credit or other collateral or additional guarantees. The Company maintains an allowance for credit losses based upon management’s experience and estimate of collectability of each outstanding invoice. The allowance for credit losses is determined with respect to specific debts or which collection is doubtful. The risk of collection associated with accounts receivable is mitigated by the diversity and number of customers. |
Liquidity risk | 19) Liquidity risk: Liquidity risk arises from managing the Company’s working capital as well as from financial expenses and principal payments of the Company’s debt instruments. Liquidity risk consists of the risk that the Company will have difficulty in fulfilling obligations relating to financial liabilities. The Company’s policy is to ascertain constant cash adequacy needed for settling its liabilities when due. For this purpose, the Company aims to hold cash balances (or adequate credit lines) that will meet anticipated demands. Magic and its subsidiaries examine cash flow forecasts on a monthly basis as well as information regarding cash balances. As of the reporting date, these forecasts indicate that the Company can expect sufficient liquid sources for covering its entire liabilities under reasonable assumptions. |
Reclassification of prior years presentation | 20) Reclassification of prior years presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Changes in accounting policies – initial adoption of new financial reporting and accounting standards | 21) Changes in accounting policies – initial adoption of new financial reporting and accounting standards: 1. Amendment to IAS 1, “Presentation of Financial Statements”: In January 2020, the IASB issued an amendment to IAS 1, “Presentation of Financial Statements” regarding the criteria for determining the classification of liabilities as current or non-current (“the Original Amendment”). In October 2022, the IASB issued a subsequent amendment (“the Subsequent Amendment”). According to the Subsequent Amendment: ● Only financial covenants with which an entity must comply on or before the reporting date will affect a liability’s classification as current or non-current. ● In respect of a liability for which compliance with financial covenants is to be evaluated within twelve months from the reporting date, disclosure is required to enable users of the financial statements to assess the risks related to that liability. The Subsequent Amendment requires disclosure of the carrying amount of the liability, information about the financial covenants, and the facts and circumstances at the end of the reporting period that could result in the conclusion that the entity may have difficulty in complying with the financial covenants. According to the Original Amendment, the conversion option of a liability affects the classification of the entire liability as current or non-current unless the conversion component is an equity instrument. The Original Amendment and Subsequent Amendment are both effective for annual periods beginning on or after January 1, 2024 and must be applied retrospectively. Early adoption is permitted. The above amendments are not expected to have a material impact on the Company’s consolidated financial statements. 2. Amendments to IAS 7, “Statement of Cash Flows”, and IFRS 7, “Financial Instruments: Disclosures”: In May 2023, the IASB issued amendments to IAS 7, “Statement of Cash Flows”, and IFRS 7, “Financial Instruments: Disclosures” (“the Amendments”) to address the presentation of liabilities and the associated cash flows arising out of supplier finance arrangements, as well as disclosures required for such arrangements. The disclosure requirements in the Amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The Amendments are effective for annual reporting periods beginning on or after January 1, 2024. Early adoption is permitted but will need to be disclosed. The Company believes that the Amendments are not expected to have a material impact on its consolidated financial statements. 3. Amendments to IAS 21, “The Effects of Changes in Foreign Exchange Rates”: In August 2023, the IASB issued “Amendments to IAS 21: Lack of Exchangeability (Amendments to IAS 21, “The Effects of Changes in Foreign Exchange Rates”)” (“the Amendments”) to clarify how an entity should assess whether a currency is exchangeable and how it should measure and determine a spot exchange rate when exchangeability is lacking. The Amendments set out the requirements for determining the spot exchange rate when a currency lacks exchangeability. The Amendments require disclosure of information that will enable users of financial statements to understand how a currency not being exchangeable affects or is expected to affect the entity’s financial performance, financial position and cash flows. The Amendments apply for annual reporting periods beginning on or after January 1, 2025. Earlier adoption is permitted, in which case, an entity is required to disclose that fact. When applying the Amendments, an entity should not restate comparative information. Instead, if the foreign currency is not exchangeable at the beginning of the annual reporting period in which the Amendments are first applied (the initial application date), the entity should translate affected assets, liabilities and equity as required by the Amendments and recognize the differences as of the initial application date as an adjustment to the opening balance of retained earnings and/or to the foreign currency translation reserve, as required by the Amendments . The Company believes that the Amendments are not expected to have a material impact on its consolidated financial statements. |
Material Accounting Policies (T
Material Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies [Abstract] | |
Schedule of Right-of-Use Assets by Class of Underlying Asset | Following are the amortization periods of the right-of-use assets by class of underlying asset: Years Mainly Land and buildings 1-12 3 Motor vehicles 1-5 3 |
Schedule of Estimated Useful Life of the Assets at Annual Rates | Depreciation is calculated on a straight-line basis over the estimated useful life of the assets at annual rates as follows: Years Software 3-5 (mainly 5) Computers and peripheral equipment 3-5 Office furniture and equipment 7-15 (mainly 7) Motor vehicles 7 |
Schedule of Useful Life of Intangible Assets | The useful life of intangible assets is as follows: Years Customer relationships Up to 15 Acquired technology Up to 10 (mainly 5) |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
K.M.T. (M.H.) Technologies Communication Computer Ltd [Member] | |
Business Combinations (Tables) [Line Items] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities | The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition: Net assets, excluding $632 of cash acquired $ 197 Intangible assets, net of deferred tax liabilities 8,281 Non-controlling interests (3,644 ) Goodwill 9,410 Total assets acquired $ 14,244 |
Share Purchase Agreement [Member] | |
Business Combinations (Tables) [Line Items] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities | The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition: Net liabilities, excluding $1,548 of cash acquired $ (2,762 ) Intangible assets, net of deferred tax liabilities 7,445 Goodwill 15,261 Total assets acquired $ 19,944 |
Goodkind Group, LLC [Member] | |
Business Combinations (Tables) [Line Items] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Net assets, excluding $147 of cash acquired $ 3,177 Customer relationships, net of deferred tax liabilities 3,901 Goodwill 4,404 Total assets acquired $ 11,482 |
IT Professional Services [Member] | |
Business Combinations (Tables) [Line Items] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Net assets, excluding $447 of cash acquired $ 120 Customer relationships, net of deferred tax liabilities 1,054 Goodwill 1,807 Total assets acquired $ 2,981 |
Asset Purchase Agreements [Member] | |
Business Combinations (Tables) [Line Items] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisitions: Net liabilities (308 ) Customer relationships, net of deferred tax liabilities 1,163 Goodwill 898 Total assets acquired $ 1,753 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule Of Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | December 31, 2022 2023 Balance nominated in USD $ 38,688 $ 57,653 Balance nominated in NIS 25,197 35,034 Balance nominated in other currencies 19,177 13,256 $ 83,062 $ 105,943 |
Other Accounts Receivable And_2
Other Accounts Receivable And Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Accounts Receivable And Prepaid Expenses [Abstract] | |
Schedule of Other Accounts Receivable And Prepaid Expenses | The following table summarizes the composition of the Company’s other accounts receivable and prepaid expenses: December 31, 2022 2023 Prepaid expenses $ 4,262 $ 5,606 Government authorities 3,659 5,289 Related parties 3,077 3,178 Marketable securities and others 2,654 4,760 $ 13,652 $ 18,833 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Fair Value Measurement [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis, including accrued interest components, consisted of the following types of instruments as of December 31, 2022 and 2023: Fair value measurements December 31, 2023 Level 3 Total Assets: Assets in respect of business combinations $ 1,368 $ 1,368 $ 1,368 $ 1,368 Liabilities: Liability in respect of business combinations $ 6,175 $ 6,175 Put options of non-controlling interests 18,872 18,872 $ 25,047 $ 25,047 Fair value measurements December 31, 2022 Level 3 Total Liabilities: Liability in respect of business combinations $ 19,693 $ 19,693 Put options of non-controlling interests 28,292 28,292 $ 47,985 $ 47,985 |
Schedule of Liabilities in Respect of the Business Combinations | The movement in the contingent consideration in respect of the business combinations is as follows: December 31, 2022 2023 Opening balance $ 17,772 $ 19,693 Increase in contingent consideration due to acquisitions 10,670 - Payment of contingent consideration (8,547 ) (13,908 ) Increase in fair value of contingent consideration 119 880 Decrease in fair value of contingent consideration (1,025 ) (640 ) Foreign currency translation adjustments (598 ) (146 ) Amortization of interest and exchange rate 1,302 296 Closing balance $ 19,693 $ 6,175 |
Schedule of Deferred Consideration in Respect of the Business Combinations | The movement in the deferred consideration in respect of the business combinations is as follows: December 31, 2022 2023 Opening balance $ 2,755 $ 4,970 Increase in deferred consideration due to acquisitions 4,744 - Payment of deferred consideration (1,742 ) (3,757 ) Amortization of interest and exchange rate 74 62 Working (861 ) 255 Closing balance $ 4,970 $ 1,530 |
Schedule of Financial Assets and Liabilities in the Consolidated Statements of Financial Position | The financial assets and liabilities in the consolidated statements of financial position are classified by groups of financial instruments pursuant to IFRS 9: December 31, 2022 2023 Financial assets Financial assets at cost: Cash and cash equivalents $ 83,062 $ 105,943 Short-term bank deposits 3,904 751 Trade receivables, net 118,126 108,385 Marketable securities 757 2,316 Total financial assets at cost measured at cost: $ 205,849 $ 217,395 Financial assets at fair value through profit or loss: Assets in respect of business combinations $ - $ 1,368 Total financial assets $ 205,849 $ 218,763 Financial liabilities at fair value through equity: Put options of non-controlling interests $ 28,292 $ 18,872 Financial liabilities at fair value through profit or loss: Liability in respect of business combinations $ 24,663 $ 7,705 Financial liabilities measured at amortized cost: Loans from bank and financial institutions (short-term and long-term debts $ 51,167 $ 81,208 Lease liabilities 28,873 27,507 Total financial liabilities measured at amortized cost: $ 80,040 $ 108,715 Total financial and lease liabilities $ 132,995 $ 135,292 |
Property, Plants and Equipmen_2
Property, Plants and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plants and Equipment, Net [Abstract] | |
Schedule of the Composition and Movement | Composition and movement: Software Motor Office Computers Leasehold Total Cost: Balance as of January 1, 2022 $ 1,623 $ 1,444 $ 3,839 $ 8,106 $ 3,725 $ 18,737 Additions during the year: Purchases 110 9 1,365 2,702 195 4,381 Acquisition of subsidiaries 4 - 55 112 8 179 Adjustments arising from translating financial statements of foreign operations (220 ) (181 ) (555 ) (1,668 ) 1,996 (628 ) Decreases during the year: Disposals (25 ) (2 ) (309 ) (632 ) (44 ) (1,012 ) Balance as of December 31, 2022 $ 1,492 $ 1,270 $ 4,395 $ 8,620 $ 5,880 $ 21,657 Accumulated depreciation: Balance as of January 1, 2022 $ 1,510 $ 1,240 $ 2,480 $ 6,594 $ 1,041 $ 12,865 Additions during the year: Depreciation 47 4 583 1,192 84 1,910 Disposals (23 ) (2 ) (284 ) (580 ) (41 ) (930 ) Adjustments arising from translating financial statements of foreign operations (135 ) (152 ) 104 (520 ) 177 (526 ) Balance as of December 31, 2022 $ 1,399 $ 1,090 2,883 $ 6,686 $ 1,261 $ 13,319 Depreciated cost at December 31, 2022 $ 93 $ 180 $ 1,512 $ 1,934 $ 4,619 $ 8,338 Software Motor vehicles Office furniture and equipment Computers and peripheral equipment Leasehold improvements Total Cost: Balance as of January 1, 2023 $ 1,492 $ 1,270 $ 4,395 $ 8,620 $ 5,880 $ 21,657 Additions during the year: Purchases 463 3 491 591 70 1,618 Acquisitions of subsidiaries 25 2 302 616 43 988 Adjustments arising from translating financial statements of foreign operations (22 ) (19 ) (255 ) (150 ) (136 ) (582 ) Decreases during the year: Disposals (3 ) (94 ) (52 ) (58 ) (7 ) (214 ) Balance as of December 31, 2023 $ 1,955 $ 1,162 $ 4,881 $ 9,619 $ 5,850 $ 23,467 Accumulated depreciation: Balance as of January 1, 2023 $ 1,399 $ 1,090 2,883 $ 6,686 $ 1,261 $ 13,319 Additions during the year: Depreciation 46 48 563 816 448 1,921 Disposals (3 ) (94 ) (51 ) (48 ) (7 ) (203 ) Acquisitions of subsidiaries 21 - 257 528 37 843 Adjustments arising from translating financial statements of foreign operations (36 ) (48 ) (46 ) (241 ) (30 ) (401 ) Balance as of December 31, 2023 $ 1,427 $ 996 3,606 $ 7,741 $ 1,709 $ 15,479 Depreciated cost at December 31, 2023 $ 528 $ 166 $ 1,275 $ 1,878 $ 4,141 $ 7,988 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Composition and Movement | Composition and movement: Capitalized Customer Acquired Others Total Cost: Balance as of January 1, 2022 $ 90,101 $ 86,651 $ 18,371 $ 637 $ 195,760 Capitalized development costs 3,059 - - - 3,059 Purchase of intangible asset - 219 - - 219 Acquisition of subsidiaries - 11,319 2,707 - 14,026 Adjustments arising from translating financial statements of foreign operations (103 ) (5,055 ) (1,030 ) (53 ) (6,241 ) Balance as of December 31, 2022 $ 93,057 $ 93,134 $ 20,048 $ 584 $ 206,823 Accumulated amortization and impairment: Balance as of January 1, 2022 $ 79,354 $ 54,494 $ 10,329 $ 193 $ 144,370 Amortization recognized in the year 3,817 7,865 1,797 95 13,574 Adjustments arising from translating financial statements of foreign operations - (2,930 ) (244 ) (4 ) (3,178 ) Balance as of December 31, 2022 $ 83,171 $ 59,429 $ 11,882 $ 284 $ 154,766 Amortized cost at December 31, 2022 $ 9,886 $ 33,705 $ 8,166 $ 300 $ 52,057 Capitalized Customer Acquired Others Total Cost: Balance as of January 1, 2023 $ 93,057 $ 93,134 $ 20,048 $ 584 $ 206,823 Capitalized development costs 3,183 - - - 3,183 Acquisition of subsidiaries - 7,704 - 1,706 9,410 Adjustments arising from translating financial statements of foreign operations (32 ) (1,172 ) (332 ) (13 ) (1,549 ) Balance as of December 31, 2023 96,208 99,666 19,716 2,277 217,867 Accumulated amortization and impairment: Balance as of January 1, 2023 $ 83,171 $ 59,429 $ 11,882 $ 284 $ 154,766 Amortization recognized in the year 3,545 7,925 1,712 291 13,473 Adjustments arising from translating financial statements of foreign operations - (864 ) (163 ) (3 ) (1,030 ) Balance as of December 31, 2023 86,716 66,490 13,431 572 167,209 Amortized cost at December 31, 2023 $ 9,492 $ 33,176 $ 6,285 $ 1,705 $ 50,658 |
Schedule of Amortization Expenses Related to Intangible Assets | During the years ended December 31, 2021, 2022 and 2023 the Company recognized amortization expenses related to intangible assets as follows: Year ended December 31, 2021 2022 2023 Cost of revenues $ 6,068 $ 5,405 $ 5,471 Selling and marketing expenses 6,968 8,169 8,002 $ 13,036 $ 13,574 $ 13,473 |
Schedule of Intangible Assets Composition by Reportable Segment | Intangible assets composition by reportable segment as of December 31, 2023: IT Software Total Capitalized Software development costs $ 788 $ 8,704 $ 9,492 Customer relationship 24,517 8,659 33,176 Acquired technology 1,439 4,846 6,285 Others 1,487 218 1,705 Total $ 28,231 $ 22,427 $ 50,658 |
Schedule of Estimated Future Amortization of Intangible Assets | The estimated future amortization expense of intangible assets as of December 31, 2023 is as follows: 2024 $ 13,136 2025 11,040 2026 9,011 2027 6,338 2028 and thereafter 11,133 $ 50,658 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
Schedule of Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2023: IT Software Total As of January 1, 2022 $ 75,603 $ 71,200 $ 146,803 Business combinations 19,622 2,705 22,327 Measurement period adjustments (902 ) (176 ) (1,078 ) Foreign currency translation adjustments (4,326 ) (5,027 ) (9,353 ) As of January 1, 2023 $ 89,997 $ 68,702 $ 158,699 Business combinations 9,410 - 9,410 Foreign currency translation adjustments (959 ) (1,085 ) (2,044 ) As of December 31, 2023 $ 98,448 $ 67,617 $ 166,065 |
Schedule of Assessment for Goodwill Impairment | The Company performed an assessment for goodwill impairment for both of its segments, which is the level at which goodwill is monitored for internal management purposes and concluded that there is no impairment loss for the year ended December 31, 2023, based on the assumptions presented below: December 31, 2023 IT Software Carrying amount $ 187,183 $ 74,009 Weighted average cost of capital 15 % 13.9 % Terminal value growth rate 3 % 3 % |
Short Term Debts (Tables)
Short Term Debts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short Term Debts [Abstract] | |
Schedule of Short Term Debts | December 31, 2023 Interest rate December 31, % Currency 2022 2023 Short-term loans from banks 3.4-6.8 NIS $ 2,449 $ 2,772 Current maturities of long-term loans from financial institutions and banks 2.1-7.2 NIS 9,310 11,226 Current maturities of long-term loans from banks 7.5-8.1 USD 8,908 13,209 Accrued interest on long term debt 2.6- 3.14 NIS 23 75 Accrued interest on long term debt 6.07 USD 65 1,659 $ 20,755 $ 28,941 |
Accrued Expenses and Other Ac_2
Accrued Expenses and Other Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Accounts Payable [Abstract] | |
Schedule of Accrued Expenses and Other Accounts Payable | Accrued expenses and other accounts payable are comprised of the following as of the below dates: December 31, 2022 2023 Employees and payroll accruals $ 29,746 $ 27,460 Accrued expenses 10,239 9,296 Government authorities and other 6,857 4,736 Total $ 46,842 $ 41,492 |
Long Term Debts (Tables)
Long Term Debts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Debts [Abstract] | |
Schedule of Long Term Liabilities | Long term liabilities to banks and others are comprised of the following as of the below dates: Linkage Interest December 31, basis rate 2022 2023 % Loans from banks and others NIS 2.12 – 7.2 $ 12,161 $ 29,010 Bank loans USD 3.4 – 8.1 36,408 47,634 Other long-term debts JPY 1.71 61 58 $ 48,630 $ 76,701 Less current maturities NIS, USD (18,218 ) (24,435 ) $ 30,412 $ 52,267 |
Schedule of Maturity Dates | Maturity dates: December 31, 2022 2023 First year (Current maturities) $ 18,218 $ 24,435 Second year 10,043 18,731 Third year 9,818 14,617 Fourth year 5,000 15,037 Fifth year and thereafter 5,551 3,881 Total $ 48,630 $ 76,701 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities | Maturity analysis of undiscounted future lease payments for lease liabilities: December 31, 2023 2024 $ 5,309 2025 4,367 2026 3,265 2027 2,561 2028 2,086 2029 and thereafter 15,663 Total undiscounted cash flows $ 33,251 Less imputed interest (5,744 ) Present value of lease liabilities $ 27,507 |
Schedule of Information on leases | Information on leases: Year ended December 31, 2022 2023 Expenses relating to operating lease costs $ 1,930 $ 2,225 Expenses relating to short-term leases $ 109 $ 62 Expenses relating to variable lease payments $ 2,753 $ 2,872 Total cash outflow for leases $ 4,792 $ 5,159 |
Schedule of Weighted Average Remaining Lease Terms | The following is a summary of weighted average remaining lease terms and discount rates for all of the Company’s operating leases: December 31, 2023 Weighted average remaining lease term (years) 11.80 Weighted average discount rate 3.89 % |
Schedule of Right-of-Use Assets | Disclosures in respect of right-of-use assets: Buildings Motor Total Cost: Balance as of January 1, 2022 $ 33,241 $ 3,505 $ 36,746 Additions during the year: New leases 4,881 1,468 6,349 Modification of leases 589 89 678 Adjustments for indexation 947 95 1,042 Adjustments arising from translating financial statements of foreign operations (1,228 ) 7 (1,221 ) Acquisition of subsidiaries 2,714 40 2,754 Disposals during the year: Termination of leases (692 ) (333 ) (1,025 ) Balance as of December 31, 2022 $ 40,452 $ 4,871 $ 45,323 Accumulated depreciation: Balance as of January 1, 2022 11,943 1,523 13,466 Additions during the year: Depreciation 3,151 1,169 4,320 Adjustments arising from translating financial statements of foreign operations 665 29 694 Disposals during the year: Termination of leases (509 ) (184 ) (693 ) Balance as of December 31, 2022 15,250 2,537 17,787 Depreciated cost at December 31, 2022 $ 25,202 $ 2,334 $ 27,536 Buildings Motor Total Cost: Balance as of January 1, 2023 $ 40,452 $ 4,871 $ 45,323 Additions during the year: New leases 1,150 1,575 2,725 Modification of leases 910 66 976 Adjustments for indexation 871 72 943 Adjustments arising from translating financial statements of foreign operations 37 212 249 Acquisition of subsidiaries 62 - 62 Disposals during the year: Termination of leases (298 ) (378 ) (676 ) Balance as of December 31, 2023 $ 43,184 $ 6,418 $ 49,602 Accumulated depreciation: Balance as of January 1, 2023 15,250 2,537 17,787 Additions during the year: Depreciation 3,689 1,470 5,159 Adjustments arising from translating financial statements of foreign operations 929 428 1,357 Disposals during the year: Termination of leases (192 ) (227 ) (419 ) Balance as of December 31, 2023 19,676 4,208 23,884 Depreciated cost at December 31, 2023 $ 23,508 $ 2,210 $ 25,718 |
Share Based Payments (Tables)
Share Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Share Based Payment Arrangements [Abstract] | |
Schedule of Employee Option Activity | A summary of employee option activity under the 2007 Plan as of December 31, 2023 and changes during the year ended December 31, 2023 are as follows: Number Weighted Weighted Aggregate Outstanding at January 1, 2023 26,250 $ 0.91 5.95 $ 397 Exercised (6,250 ) 3.51 Forfeited (20,000 ) - Outstanding at December 31, 2023 - $ - - $ - Exercisable at December 31, 2023 - $ - - $ - Number Weighted Weighted Aggregate Outstanding at January 1, 2023 4,028 $ 264.67 7.94 $ 7,499 Granted - - Outstanding at December 31, 2023 4,028 256.79 6.94 7,276 Exercisable at December 31, 2023 1,847 $ 27.72 6.93 $ 3,760 |
Schedule of Options Outstanding | The options outstanding as of December 31, 2023, have been separated into exercise price categories, as follows: Exercise price Options Weighted Options Weighted In $ 0.28 3,238 6.92 1,736 $ 0.28 455 297 6.99 111 455 1,822 493 6.99 - - 4,028 6.94 1,847 $ 27.72 |
Schedule of Fair Value of the Options Granted Using the Binomial Model | The fair value of the options granted in 2022 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2022 Share price $2,110 Contractual life 8 years Expected exercise factor 1.5 Dividend yield 0% Expected volatility (weighted average) 41% Risk-free interest rate 3.28%-3.65% Fair value of option at the grant date $1,078-$2,126 |
Schedule of Share-Based Payment Expense Related to Employee Stock Option | During the years ended December 31 2021, 2022 and 2023 the Company share-based payment expense under the 2007 plan and CommIT Solution 2022 amounted to $956, $2,079 and $3,798, respectively, as follows: Year ended December 31, 2021 2022 2023 Selling and marketing expenses $ 956 $ (56 ) $ (225 ) General and administrative expenses - 2,135 4,023 $ 956 $ 2,079 $ 3,798 |
Employee Benefit Liabilities (T
Employee Benefit Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Liabilities [Abstract] | |
Schedule of Defined Benefit Plans | Composition of defined benefit plans is as follows: December 31, 2022 2023 Defined benefit obligation $ 2,476 $ 2,665 Fair value of plan assets (1,575 ) (1,549 ) Net defined benefit liability $ 901 $ 1,116 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss: December 31, 2022 2023 Accumulated foreign currency translation adjustments (6,585 ) (10,340 ) Accumulated unrealized gain on derivative instruments, net 26 26 Total other comprehensive income (loss) $ (6,559 ) $ (10,314 ) |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax [Abstract] | |
Schedule of Presentation Net Deferred Tax Assets and Liabilities | Presentation of net deferred tax assets and liabilities, in the consolidated statements of financial position: December 31, 2022 2023 Deferred taxes assets $ 3,618 $ 6,729 Deferred tax liabilities (10,686 ) (11,610 ) $ (7,068 ) $ (4,881 ) |
Schedule of Components of the Company’s Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2022 2023 Deferred tax liabilities: Intangible assets $ 12,311 $ 13,789 Reserves and allowances 1,142 530 Right-of-use assets 5,133 5,169 Gross deferred tax liabilities $ 18,586 $ 19,488 Deferred tax assets: Carry-forwards losses $ 349 $ 3,668 Intangible assets 540 1,495 Reserves and allowances 5,628 4,054 Lease liabilities 5,001 5,390 Gross deferred tax assets $ 11,518 $ 14,607 Net deferred tax liabilities $ (7,068 ) $ (4,881 ) |
Schedule of Income Tax | Income tax (tax benefit) consist of the following: Year ended December 31, 2021 2022 2023 Current: Domestic $ 7,847 $ 11,368 $ 11,108 Foreign 6,123 6,304 5 13,970 17,672 11,113 Deferred taxes: Domestic (1,149 ) (1,318 ) (1,588 ) Foreign (2,543 ) (5,216 ) 409 (3,692 ) (6,534 ) (1,179 ) Taxes on income $ 10,278 $ 11,138 $ 9,934 |
Schedule of Components of the Company’s Deferred Tax Assets and Liabilities | The following table presents reconciliation between the theoretical tax expense, assuming that all income was taxed at statutory tax rates, and the actual income tax expense, as recorded in the Company’s consolidated statements of profit or loss: Year ended December 31, 2021 2022 2023 Income before income taxes, as per the statement of operations $ 45,617 $ 57,417 $ 52,436 Statutory tax rate in Israel 23 % 23 % 23 % Tax computed at the statutory tax rate 10,494 13,205 12,060 Tax adjustment in respect of different tax rates 283 (1,756 ) (1,345 ) Deferred taxes on losses for which deferred taxes were not created (80 ) (511 ) (2,764 ) Tax-deductible costs, not included in the accounting costs (1,041 ) (2,680 ) - Non-deductible expenses and tax expenses in respect of prior years, net 1,001 2,670 534 Uncertain tax positions and other (379 ) 210 1,448 Taxes on income $ 10,278 $ 11,138 $ 9,934 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Schedule of Deferred Revenues from Contracts with Customers | The following table provides information about trade receivables, unbilled receivables, contract assets, and contract liabilities (deferred revenues) from contracts with customers (in thousands): December 31, 2022 2023 Trade receivables (net of allowance for credit losses of $5,416 and $7,066 at December 31, 2022 and 2023, respectively) $ 118,126 $ 108,385 Unbilled receivables 26,114 15,953 Contract assets 4,240 6,760 Long-term unbilled receivables *) 2,548 2,240 Long-term trade receivables *) 735 1,029 Deferred revenues (short-term contract liabilities) $ 9,808 $ 13,537 *) Included in Other long-term receivables in the consolidated statements of financial position. |
Schedule of Past due but not Impaired Trade Receivables | An analysis of past due but not impaired trade receivables with reference to reporting date: Past due trade receivables with aging of Neither Up to 30 31-60 61-90 91-120 Over 121 Total Unpaid Allowance Total trade December 31, 2022 $ 67,793 $ 24,150 $ 16,869 $ 12,863 $ 4,125 $ 13,311 $ 139,111 $ (15,569 ) $ (5,416 ) $ 118,126 December 31, 2023 $ 71,545 $ 30,191 $ 7,065 $ 3,407 $ 1,801 $ 15,818 $ 129,826 $ (14,375 ) $ (7,066 ) $ 108,385 |
Schedule of Revenue by timing of Revenue Recognition | Revenue by timing of revenue recognition was as follows: Year ended December 31, 2021 2022 2023 Products and services transferred over time $ 449,391 $ 533,862 $ 502,358 Products transferred at a point in time 30,934 32,930 32,694 480,325 566,792 535,052 |
Selected Statements of Income_2
Selected Statements of Income Data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Selected Statements of Income Data [Abstract] | |
Schedule of Research and Development Costs, Net | Research and development costs, net: Year ended December 31, 2021 2022 2023 Total costs $ 12,188 $ 13,149 $ 13,511 Less - capitalized software costs (3,193 ) (3,059 ) (3,183 ) Research and development, net $ 8,995 $ 10,090 $ 10,328 |
Schedule of Selling and Marketing Expenses | Selling and marketing expenses: Year ended December 31, 2021 2022 2023 Salary and related expenses $ 26,100 $ 33,474 $ 31,188 Advertising expenses 2,522 2,676 2,802 Cost of share-based payment 956 (56 ) (225 ) Others 8,569 10,763 10,735 Total selling and marketing expenses $ 38,147 $ 46,857 $ 44,500 |
Schedule of General and Administrative Expenses | General and administrative expenses: Year ended December 31, 2021 2022 2023 Salary and related expenses 24,072 $ 21,492 $ 27,425 Subcontractors 3,842 5,335 4,726 Cost of share-based payment - 2,135 4,023 Others 3,308 8,590 4,637 Total general and administrative expenses 31,222 $ 37,552 $ 40,811 |
Schedule of Financial Income and Expenses | The following table provides detailed breakdown of the Company’s financial income and expenses: Year ended December 31, 2021 2022 2023 Financial expenses: Interest expenses on loans and borrowings 615 1,743 5,039 Interest expenses attributed to leases 719 691 964 Bank charges, negative foreign exchange differences and other financial expenses 2,468 2,559 3,224 3,802 4,993 9,227 Financial income: Interest income attributed to bank deposits 36 305 1,166 Interest income from deposits, positive foreign exchange differences and other financial income 77 1,087 3,735 113 1,392 4,901 Financial expenses, net $ 3,689 $ 3,601 $ 4,326 |
Schedule of Computation of B asic and Diluted Net Earnings Per Share | The following table presents the computation of basic and diluted net earnings per share for the Company: Year ended December 31, 2021 2022 2023 Numerator: Net income attributable to Magic shareholders $ 29,767 $ 40,470 $ 37,031 Denominator: Basic earnings per share - weighted average shares outstanding 49,055,082 49,089,044 49,095,760 Effect of dilutive securities 44,972 42,267 2,660 Diluted earnings per share – adjusted weighted average shares outstanding 49,100,054 49,131,311 49,098,420 Basic and diluted net earnings per share 0.61 0.82 0.75 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
Schedule of Reported Segment Results of Operation | The following is information about reported segment results of operation: Software IT Unallocated Total 2021 Total revenues $ 95,589 $ 384,736 - $ 480,325 Expenses 74,863 347,712 5,627 428,202 Operating income (loss) $ 20,726 $ 37,024 $ (5,627 ) $ 52,123 Depreciation and amortization $ 10,619 $ 8,846 $ 372 $ 19,837 2022 Total revenues $ 99,374 $ 467,418 $ - $ 566,792 Expenses 72,115 427,446 5,469 505,030 Operating income (loss) $ 27,259 $ 39,972 $ (5,469 ) $ 61,762 Depreciation and amortization $ 10,321 $ 9,102 $ 372 $ 19,795 2023 Total revenues $ 92,906 $ 442,146 $ - $ 535,052 Expenses 71,863 400,949 5,132 477,944 Operating income (loss) $ 21,043 $ 41,197 $ (5,132 ) $ 57,108 Depreciation and amortization $ 9,717 $ 10,432 $ 404 $ 20,553 |
Schedule of Total Revenues | The following table presents total revenues classified according to geographical destination for the years ended December 31 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 United States $ 254,342 $ 308,485 $ 250,842 Israel 180,462 205,258 214,129 Europe 30,085 39,247 55,180 Japan 11,443 10,121 10,847 Other 3,993 3,681 4,054 Total revenues $ 480,325 $ 566,792 $ 535,052 |
Schedule of Long-Lived Assets | The Company’s long-lived assets are located as follows: December 31, 2021 2022 2023 United States $ 76,369 $ 82,325 $ 77,120 Israel 138,071 148,819 158,144 Europe 4,423 7,885 7,596 Japan 5,543 4,696 4,222 Other 2,939 2,905 3,347 $ 227,345 $ 246,630 $ 250,429 |
Material Accounting Policies (D
Material Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Material Accounting Policies [Line Items] | |||
General and administrative | $ 2,116 | $ 1,778 | $ 892 |
Capitalized Software [Member] | Bottom of Range [Member] | |||
Material Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Capitalized Software [Member] | Top of Range [Member] | |||
Material Accounting Policies [Line Items] | |||
Estimated useful life | 5 years |
Material Accounting Policies _2
Material Accounting Policies (Details) - Schedule of Right-of-Use Assets by Class of Underlying Asset | 12 Months Ended |
Dec. 31, 2023 | |
Land and buildings [member] | |
Schedule of Quantitative Information About Right of Use Assets [Line Items] | |
Right use of asset | 3 years |
Motor vehicles [member] | |
Schedule of Quantitative Information About Right of Use Assets [Line Items] | |
Right use of asset | 3 years |
Bottom of Range [Member] | Land and buildings [member] | |
Schedule of Quantitative Information About Right of Use Assets [Line Items] | |
Right use of asset | 1 year |
Bottom of Range [Member] | Motor vehicles [member] | |
Schedule of Quantitative Information About Right of Use Assets [Line Items] | |
Right use of asset | 1 year |
Top of Range [Member] | Land and buildings [member] | |
Schedule of Quantitative Information About Right of Use Assets [Line Items] | |
Right use of asset | 12 years |
Top of Range [Member] | Motor vehicles [member] | |
Schedule of Quantitative Information About Right of Use Assets [Line Items] | |
Right use of asset | 5 years |
Material Accounting Policies _3
Material Accounting Policies (Details) - Schedule of Estimated Useful Life of the Assets at Annual Rates - Bottom of range [member] | 12 Months Ended |
Dec. 31, 2023 | |
Software [Member] | |
Schedule of Annual Rates of Depreciation [Line Items] | |
Estimated useful life of assets | 3-5 (mainly 5) |
Computers and peripheral equipment [Member] | |
Schedule of Annual Rates of Depreciation [Line Items] | |
Estimated useful life of assets | 3-5 |
Office furniture and equipment [Member] | |
Schedule of Annual Rates of Depreciation [Line Items] | |
Estimated useful life of assets | 7-15 (mainly 7) |
Motor vehicles [Member] | |
Schedule of Annual Rates of Depreciation [Line Items] | |
Estimated useful life of assets | 7 |
Material Accounting Policies _4
Material Accounting Policies (Details) - Schedule of Useful Life of Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Customer relationships [Member] | |
Schedule of Intangible Assets with Indefinite Useful Life [Line Items] | |
Useful life of intangible asset | Up to 15 |
Acquired Technology [Member] | |
Schedule of Intangible Assets with Indefinite Useful Life [Line Items] | |
Useful life of intangible asset | Up to 10 (mainly 5) |
Business Combinations (Details)
Business Combinations (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 08, 2023 ILS (₪) | Dec. 02, 2021 USD ($) | Aug. 23, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 ILS (₪) | Jun. 08, 2023 USD ($) | Jun. 08, 2023 ILS (₪) | Jul. 01, 2022 USD ($) | |
Business Combinations [Line Items] | ||||||||||
Total consideration amount | $ 1,400 | ₪ 5,000,000 | $ 3,428 | |||||||
Competitive digital ecosystem | $ 21,492 | |||||||||
Closing payment | 11,042 | $ 7,993 | 4,962 | $ 239 | $ 11,042 | |||||
Advance payment for future acquisition | $ 1,500 | |||||||||
Share purchase holding percentage | 100% | |||||||||
Fair value of acquisition date | $ 10,450 | |||||||||
Fair value of financial liability | $ 4,634 | |||||||||
Net working capital adjustments | $ 11,629 | |||||||||
Consideration paid | $ 1,753 | |||||||||
KMT [Member] | ||||||||||
Business Combinations [Line Items] | ||||||||||
Percentage of acquisition interests | 60% | 60% | ||||||||
Total consideration amount | $ 14,875 | ₪ 55,039 | ||||||||
Cash payment (in New Shekels) | ₪ | ₪ 60,000,000 | |||||||||
Contingent consideration amount (in New Shekels) | ₪ | ₪ 15,000,000 | |||||||||
Asset Purchase Agreements [Member] | ||||||||||
Business Combinations [Line Items] | ||||||||||
Percentage of acquisition interests | 50.10% |
Business Combinations (Detail_2
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities - K.M.T. (M.H.) Technologies Communication Computer Ltd [Member] $ in Thousands | Jun. 30, 2023 USD ($) |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net assets, excluding $632 of cash acquired | $ 197 |
Intangible assets, net of deferred tax liabilities | 8,281 |
Non-controlling interests | (3,644) |
Goodwill | 9,410 |
Total assets acquired | $ 14,244 |
Business Combinations (Detail_3
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities (Parentheticals) $ in Thousands | Jun. 30, 2023 USD ($) |
K.M.T. (M.H.) Technologies Communication Computer Ltd [Member] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net liabilities excluding of cash acquired | $ 632 |
Business Combinations (Detail_4
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities - Share Purchase Agreement [Member] $ in Thousands | Jan. 27, 2022 USD ($) |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net liabilities, excluding $1,548 of cash acquired | $ (2,762) |
Intangible assets, net of deferred tax liabilities | 7,445 |
Goodwill | 15,261 |
Total assets acquired | $ 19,944 |
Business Combinations (Detail_5
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities (Parentheticals) $ in Thousands | Jan. 27, 2022 USD ($) |
Share Purchase Agreement [Member] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net liabilities excluding of cash acquired | $ 1,548 |
Business Combinations (Detail_6
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities - Goodkind Group, LLC [Member] $ in Thousands | Aug. 23, 2022 USD ($) |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net assets, excluding $147 of cash acquired | $ 3,177 |
Customer relationships, net of deferred tax liabilities | 3,901 |
Goodwill | 4,404 |
Total assets acquired | $ 11,482 |
Business Combinations (Detail_7
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities (Parentheticals) $ in Thousands | Aug. 23, 2022 USD ($) |
Goodkind Group, LLC [Member] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net liabilities excluding of cash acquired | $ 147 |
Business Combinations (Detail_8
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities - IT Professional Services [Member] $ in Thousands | Jul. 01, 2022 USD ($) |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net assets, excluding $447 of cash acquired | $ 120 |
Customer relationships, net of deferred tax liabilities | 1,054 |
Goodwill | 1,807 |
Total assets acquired | $ 2,981 |
Business Combinations (Detail_9
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities (Parentheticals) $ in Thousands | Jul. 01, 2022 USD ($) |
IT Professional Services [Member] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net liabilities excluding of cash acquired | $ 447 |
Business Combinations (Detai_10
Business Combinations (Details) - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities - Asset Purchase Agreements [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities [Line Items] | |
Net liabilities | $ (308) |
Customer relationships, net of deferred tax liabilities | 1,163 |
Goodwill | 898 |
Total assets acquired | $ 1,753 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Schedule of Cash and Cash Equivalents - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Cash and Cash Equivalents [Abstract] | ||
Balance nominated in USD | $ 57,653 | $ 38,688 |
Balance nominated in NIS | 35,034 | 25,197 |
Balance nominated in other currencies | 13,256 | 19,177 |
Cash and cash equivalents | $ 105,943 | $ 83,062 |
Other Accounts Receivable And_3
Other Accounts Receivable And Prepaid Expenses (Details) - Schedule of Other Accounts Receivable And Prepaid Expenses - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Accounts Receivable and Prepaid Expenses [Abstract] | ||
Prepaid expenses | $ 5,606 | $ 4,262 |
Government authorities | 5,289 | 3,659 |
Related parties | 3,178 | 3,077 |
Marketable securities and others | 4,760 | 2,654 |
Total | $ 18,833 | $ 13,652 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Assets in respect of business combinations | $ 1,368 | |
Total Assets | 1,368 | |
Liabilities: | ||
Liability in respect of business combinations | 6,175 | 19,693 |
Put options of non-controlling interests | 18,872 | 28,292 |
Total Liabilities | 25,047 | 47,985 |
Level 3 of fair value hierarchy [member] | ||
Assets: | ||
Assets in respect of business combinations | 1,368 | |
Total Assets | 1,368 | |
Liabilities: | ||
Liability in respect of business combinations | 6,175 | 19,693 |
Put options of non-controlling interests | 18,872 | 28,292 |
Total Liabilities | $ 25,047 | $ 47,985 |
Fair Value Measurement (Detai_2
Fair Value Measurement (Details) - Schedule of Liabilities in Respect of the Business Combinations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Liabilities in Respect of the Business Combinations [Abstract] | ||
Opening balance | $ 19,693 | $ 17,772 |
Increase in contingent consideration due to acquisitions | 10,670 | |
Payment of contingent consideration | (13,908) | (8,547) |
Increase in fair value of contingent consideration | 880 | 119 |
Decrease in fair value of contingent consideration | (640) | (1,025) |
Foreign currency translation adjustments | (146) | (598) |
Amortization of interest and exchange rate | 296 | 1,302 |
Closing balance | $ 6,175 | $ 19,693 |
Fair Value Measurement (Detai_3
Fair Value Measurement (Details) - Schedule of Deferred Consideration in Respect of the Business Combinations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Deferred Consideration in Respect of the Business Combinations [Abstract] | ||
Opening balance | $ 4,970 | $ 2,755 |
Increase in deferred consideration due to acquisitions | 4,744 | |
Payment of deferred consideration | (3,757) | (1,742) |
Amortization of interest and exchange rate | 62 | 74 |
Working capital adjustments and other | 255 | (861) |
Closing balance | $ 1,530 | $ 4,970 |
Fair Value Measurement (Detai_4
Fair Value Measurement (Details) - Schedule of Financial Assets and Liabilities in the Consolidated Statements of Financial Position - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets at cost: | ||||
Cash and cash equivalents | $ 105,943 | $ 83,062 | $ 88,090 | $ 88,127 |
Short-term bank deposits | 751 | 3,904 | ||
Trade receivables, net | 108,385 | 118,126 | ||
Marketable securities | 2,316 | 757 | ||
Total financial assets at cost measured at cost: | 217,395 | 205,849 | ||
Financial assets at fair value through profit or loss: | ||||
Assets in respect of business combinations | 1,368 | |||
Total financial assets | 218,763 | 205,849 | ||
Financial liabilities at fair value through equity: | ||||
Put options of non-controlling interests | 18,872 | 28,292 | ||
Financial liabilities at fair value through profit or loss: | ||||
Liability in respect of business combinations | 7,705 | 24,663 | ||
Financial liabilities measured at amortized cost: | ||||
Loans from bank and financial institutions (short-term and long-term debts | 81,208 | 51,167 | ||
Lease liabilities | 27,507 | 28,873 | ||
Total financial liabilities measured at amortized cost: | 108,715 | 80,040 | ||
Total financial and lease liabilities | $ 135,292 | $ 132,995 |
Property, Plants and Equipmen_3
Property, Plants and Equipment, Net (Details) - Schedule of the Composition and Movement - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cost: | ||
Beginning balance | $ 21,657 | $ 18,737 |
Additions during the year: | ||
Depreciated cost at December 31, 2023 | 7,988 | 8,338 |
Additions during the year: | ||
Depreciated cost at December 31, 2022 | 8,338 | 8,338 |
Additions during the year: | ||
Purchases | 1,618 | 4,381 |
Acquisitions of subsidiaries | 988 | 179 |
Adjustments arising from translating financial statements of foreign operations | (582) | (628) |
Decreases during the year: | ||
Disposals | (214) | (1,012) |
Ending balance | 23,467 | 21,657 |
Accumulated Depreciation [Member] | ||
Cost: | ||
Beginning balance | 13,319 | 12,865 |
Additions during the year: | ||
Depreciation | 1,921 | 1,910 |
Additions during the year: | ||
Acquisitions of subsidiaries | 843 | |
Adjustments arising from translating financial statements of foreign operations | (401) | (526) |
Decreases during the year: | ||
Disposals | (203) | (930) |
Ending balance | 15,479 | 13,319 |
Software [Member] | ||
Cost: | ||
Beginning balance | 1,492 | 1,623 |
Additions during the year: | ||
Depreciated cost at December 31, 2023 | 528 | |
Additions during the year: | ||
Depreciated cost at December 31, 2022 | 93 | |
Additions during the year: | ||
Purchases | 463 | 110 |
Acquisitions of subsidiaries | 25 | 4 |
Adjustments arising from translating financial statements of foreign operations | (22) | (220) |
Decreases during the year: | ||
Disposals | (3) | (25) |
Ending balance | 1,955 | 1,492 |
Software [Member] | Accumulated Depreciation [Member] | ||
Cost: | ||
Beginning balance | 1,399 | 1,510 |
Additions during the year: | ||
Depreciation | 46 | 47 |
Additions during the year: | ||
Acquisitions of subsidiaries | 21 | |
Adjustments arising from translating financial statements of foreign operations | (36) | (135) |
Decreases during the year: | ||
Disposals | (3) | (23) |
Ending balance | 1,427 | 1,399 |
Motor vehicles [Member] | ||
Cost: | ||
Beginning balance | 1,270 | 1,444 |
Additions during the year: | ||
Depreciated cost at December 31, 2023 | 166 | |
Additions during the year: | ||
Depreciated cost at December 31, 2022 | 180 | |
Additions during the year: | ||
Purchases | 3 | 9 |
Acquisitions of subsidiaries | 2 | |
Adjustments arising from translating financial statements of foreign operations | (19) | (181) |
Decreases during the year: | ||
Disposals | (94) | (2) |
Ending balance | 1,162 | 1,270 |
Motor vehicles [Member] | Accumulated Depreciation [Member] | ||
Cost: | ||
Beginning balance | 1,090 | 1,240 |
Additions during the year: | ||
Depreciation | 48 | 4 |
Additions during the year: | ||
Acquisitions of subsidiaries | ||
Adjustments arising from translating financial statements of foreign operations | (48) | (152) |
Decreases during the year: | ||
Disposals | (94) | (2) |
Ending balance | 996 | 1,090 |
Office furniture and equipment [Member] | ||
Cost: | ||
Beginning balance | 4,395 | 3,839 |
Additions during the year: | ||
Depreciated cost at December 31, 2023 | 1,275 | |
Additions during the year: | ||
Depreciated cost at December 31, 2022 | 1,512 | |
Additions during the year: | ||
Purchases | 491 | 1,365 |
Acquisitions of subsidiaries | 302 | 55 |
Adjustments arising from translating financial statements of foreign operations | (255) | (555) |
Decreases during the year: | ||
Disposals | (52) | (309) |
Ending balance | 4,881 | 4,395 |
Office furniture and equipment [Member] | Accumulated Depreciation [Member] | ||
Cost: | ||
Beginning balance | 2,883 | 2,480 |
Additions during the year: | ||
Depreciation | 563 | 583 |
Additions during the year: | ||
Acquisitions of subsidiaries | 257 | |
Adjustments arising from translating financial statements of foreign operations | (46) | 104 |
Decreases during the year: | ||
Disposals | (51) | (284) |
Ending balance | 3,606 | 2,883 |
Computers and peripheral equipment [Member] | ||
Cost: | ||
Beginning balance | 8,620 | 8,106 |
Additions during the year: | ||
Depreciated cost at December 31, 2023 | 1,878 | |
Additions during the year: | ||
Depreciated cost at December 31, 2022 | 1,934 | |
Additions during the year: | ||
Purchases | 591 | 2,702 |
Acquisitions of subsidiaries | 616 | 112 |
Adjustments arising from translating financial statements of foreign operations | (150) | (1,668) |
Decreases during the year: | ||
Disposals | (58) | (632) |
Ending balance | 9,619 | 8,620 |
Computers and peripheral equipment [Member] | Accumulated Depreciation [Member] | ||
Cost: | ||
Beginning balance | 6,686 | 6,594 |
Additions during the year: | ||
Depreciation | 816 | 1,192 |
Additions during the year: | ||
Acquisitions of subsidiaries | 528 | |
Adjustments arising from translating financial statements of foreign operations | (241) | (520) |
Decreases during the year: | ||
Disposals | (48) | (580) |
Ending balance | 7,741 | 6,686 |
Leasehold improvements [Member] | ||
Cost: | ||
Beginning balance | 5,880 | 3,725 |
Additions during the year: | ||
Depreciated cost at December 31, 2023 | 4,141 | |
Additions during the year: | ||
Depreciated cost at December 31, 2022 | 4,619 | |
Additions during the year: | ||
Purchases | 70 | 195 |
Acquisitions of subsidiaries | 43 | 8 |
Adjustments arising from translating financial statements of foreign operations | (136) | 1,996 |
Decreases during the year: | ||
Disposals | (7) | (44) |
Ending balance | 5,850 | 5,880 |
Leasehold improvements [Member] | Accumulated Depreciation [Member] | ||
Cost: | ||
Beginning balance | 1,261 | 1,041 |
Additions during the year: | ||
Depreciation | 448 | 84 |
Additions during the year: | ||
Acquisitions of subsidiaries | 37 | |
Adjustments arising from translating financial statements of foreign operations | (30) | 177 |
Decreases during the year: | ||
Disposals | (7) | (41) |
Ending balance | $ 1,709 | $ 1,261 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - Schedule of Composition and Movement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Composition and Movement [Line Items] | |||
Beginning balance, Cost | $ 206,823 | $ 195,760 | |
Capitalized development costs | 3,183 | 3,059 | |
Purchase of intangible asset | 219 | ||
Acquisition of subsidiaries | 9,410 | 14,026 | |
Adjustments arising from translating financial statements of foreign operations | (1,549) | (6,241) | |
Ending balance, Cost | 217,867 | 206,823 | 195,760 |
Beginning balance, Accumulated amortization and impairment | 154,766 | 144,370 | |
Amortization recognized in the year | 13,473 | 13,574 | |
Adjustments arising from translating financial statements of foreign operations | (1,030) | (3,178) | |
Ending balance, Accumulated amortization and impairment | 167,209 | 154,766 | 144,370 |
Amortized cost | 50,658 | 52,057 | |
Capitalized Software development costs [Member] | |||
Schedule of Composition and Movement [Line Items] | |||
Beginning balance, Cost | 93,057 | 90,101 | |
Capitalized development costs | 3,183 | 3,059 | |
Purchase of intangible asset | |||
Acquisition of subsidiaries | |||
Adjustments arising from translating financial statements of foreign operations | (32) | (103) | |
Ending balance, Cost | 96,208 | 93,057 | 90,101 |
Beginning balance, Accumulated amortization and impairment | 83,171 | 79,354 | |
Amortization recognized in the year | 3,545 | 3,817 | |
Adjustments arising from translating financial statements of foreign operations | |||
Ending balance, Accumulated amortization and impairment | 86,716 | 83,171 | 79,354 |
Amortized cost | 9,492 | 9,886 | |
Customer relationship [Member] | |||
Schedule of Composition and Movement [Line Items] | |||
Beginning balance, Cost | 93,134 | 86,651 | |
Capitalized development costs | |||
Purchase of intangible asset | 219 | ||
Acquisition of subsidiaries | 7,704 | 11,319 | |
Adjustments arising from translating financial statements of foreign operations | (1,172) | (5,055) | |
Ending balance, Cost | 99,666 | 93,134 | 86,651 |
Beginning balance, Accumulated amortization and impairment | 59,429 | 54,494 | |
Amortization recognized in the year | 7,925 | 7,865 | |
Adjustments arising from translating financial statements of foreign operations | (864) | (2,930) | |
Ending balance, Accumulated amortization and impairment | 66,490 | 59,429 | 54,494 |
Amortized cost | 33,176 | 33,705 | |
Acquired technology [Member] | |||
Schedule of Composition and Movement [Line Items] | |||
Beginning balance, Cost | 20,048 | 18,371 | |
Capitalized development costs | |||
Purchase of intangible asset | |||
Acquisition of subsidiaries | 2,707 | ||
Adjustments arising from translating financial statements of foreign operations | (332) | (1,030) | |
Ending balance, Cost | 19,716 | 20,048 | 18,371 |
Beginning balance, Accumulated amortization and impairment | 11,882 | 10,329 | |
Amortization recognized in the year | 1,712 | 1,797 | |
Adjustments arising from translating financial statements of foreign operations | (163) | (244) | |
Ending balance, Accumulated amortization and impairment | 13,431 | 11,882 | 10,329 |
Amortized cost | 6,285 | 8,166 | |
Others [Member] | |||
Schedule of Composition and Movement [Line Items] | |||
Beginning balance, Cost | 584 | 637 | |
Capitalized development costs | |||
Purchase of intangible asset | |||
Acquisition of subsidiaries | 1,706 | ||
Adjustments arising from translating financial statements of foreign operations | (13) | (53) | |
Ending balance, Cost | 2,277 | 584 | 637 |
Beginning balance, Accumulated amortization and impairment | 284 | 193 | |
Amortization recognized in the year | 291 | 95 | |
Adjustments arising from translating financial statements of foreign operations | (3) | (4) | |
Ending balance, Accumulated amortization and impairment | 572 | 284 | $ 193 |
Amortized cost | $ 1,705 | $ 300 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Amortization Expenses Related to Intangible Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Amortization Expenses Related to Intangible Assets [Line Items] | |||
Cost of revenues | $ 5,471 | $ 5,405 | $ 6,068 |
Selling and marketing expenses | 8,002 | 8,169 | 6,968 |
Total | $ 13,473 | $ 13,574 | $ 13,036 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Intangible Assets Composition by Reportable Segment - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Intangible Assets Composition by Reportable Segment [Line Items] | ||
Capitalized Software development costs | $ 9,492 | |
Customer relationship | 33,176 | |
Acquired technology | 6,285 | |
Others | 1,705 | |
Total | 50,658 | $ 52,057 |
IT professional services [Member] | ||
Schedule of Intangible Assets Composition by Reportable Segment [Line Items] | ||
Capitalized Software development costs | 788 | |
Customer relationship | 24,517 | |
Acquired technology | 1,439 | |
Others | 1,487 | |
Total | 28,231 | |
Software services [Member] | ||
Schedule of Intangible Assets Composition by Reportable Segment [Line Items] | ||
Capitalized Software development costs | 8,704 | |
Customer relationship | 8,659 | |
Acquired technology | 4,846 | |
Others | 218 | |
Total | $ 22,427 |
Intangible Assets, Net (Detai_4
Intangible Assets, Net (Details) - Schedule of Estimated Future Amortization of Intangible Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Estimated Future Amortization of Intangible Assets [Line Items] | ||
Future amortization expense of intangible assets | $ 50,658 | $ 52,057 |
2024 [Member] | ||
Schedule of Estimated Future Amortization of Intangible Assets [Line Items] | ||
Future amortization expense of intangible assets | 13,136 | |
2025 [Member] | ||
Schedule of Estimated Future Amortization of Intangible Assets [Line Items] | ||
Future amortization expense of intangible assets | 11,040 | |
2026 [Member] | ||
Schedule of Estimated Future Amortization of Intangible Assets [Line Items] | ||
Future amortization expense of intangible assets | 9,011 | |
2027 [Member] | ||
Schedule of Estimated Future Amortization of Intangible Assets [Line Items] | ||
Future amortization expense of intangible assets | 6,338 | |
2028 and thereafter [Member] | ||
Schedule of Estimated Future Amortization of Intangible Assets [Line Items] | ||
Future amortization expense of intangible assets | $ 11,133 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of Carrying Amount of Goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill (Details) - Schedule of Carrying Amount of Goodwill [Line Items] | ||
Starting balance | $ 158,699 | $ 146,803 |
Business combinations | 9,410 | 22,327 |
Measurement period adjustments | (1,078) | |
Foreign currency translation adjustments | (2,044) | (9,353) |
Ending balance | 166,065 | 158,699 |
IT professional services [Member] | ||
Goodwill (Details) - Schedule of Carrying Amount of Goodwill [Line Items] | ||
Starting balance | 89,997 | 75,603 |
Business combinations | 9,410 | 19,622 |
Measurement period adjustments | (902) | |
Foreign currency translation adjustments | (959) | (4,326) |
Ending balance | 98,448 | 89,997 |
Software services [Member] | ||
Goodwill (Details) - Schedule of Carrying Amount of Goodwill [Line Items] | ||
Starting balance | 68,702 | 71,200 |
Business combinations | 2,705 | |
Measurement period adjustments | (176) | |
Foreign currency translation adjustments | (1,085) | (5,027) |
Ending balance | $ 67,617 | $ 68,702 |
Goodwill (Details) - Schedule_2
Goodwill (Details) - Schedule of Assessment for Goodwill Impairment $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
IT professional services [Member] | |
Schedule of Assessment for Goodwill Impairment [Line Items] | |
Carrying amount (in Dollars) | $ 187,183 |
Weighted average cost of capital | 15% |
Terminal value growth rate | 3% |
Software services [Member] | |
Schedule of Assessment for Goodwill Impairment [Line Items] | |
Carrying amount (in Dollars) | $ 74,009 |
Weighted average cost of capital | 13.90% |
Terminal value growth rate | 3% |
Short Term Debts (Details) - Sc
Short Term Debts (Details) - Schedule of Short Term Debts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Short Term Debts [Line Items] | ||
Short term debts | $ 28,941 | $ 20,755 |
Short-term loans from banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Currency | NIS | |
Short term debts | $ 2,772 | 2,449 |
Current maturities of long-term loans from financial institutions and banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Currency | NIS | |
Short term debts | $ 11,226 | 9,310 |
Current maturities of long-term loans from banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Currency | USD | |
Short term debts | $ 13,209 | 8,908 |
Accrued interest on long term debt [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Currency | NIS | |
Short term debts | $ 75 | 23 |
Accrued interest on long term debt [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 6.07% | |
Currency | USD | |
Short term debts | $ 1,659 | $ 65 |
Bottom of Range [Member] | Short-term loans from banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 3.40% | |
Bottom of Range [Member] | Current maturities of long-term loans from financial institutions and banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 2.10% | |
Bottom of Range [Member] | Current maturities of long-term loans from banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 7.50% | |
Bottom of Range [Member] | Accrued interest on long term debt [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 2.60% | |
Top of Range [Member] | Short-term loans from banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 6.80% | |
Top of Range [Member] | Current maturities of long-term loans from financial institutions and banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 7.20% | |
Top of Range [Member] | Current maturities of long-term loans from banks [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 8.10% | |
Top of Range [Member] | Accrued interest on long term debt [Member] | ||
Schedule of Short Term Debts [Line Items] | ||
Interest rate % | 3.14% |
Accrued Expenses and Other Ac_3
Accrued Expenses and Other Accounts Payable (Details) - Schedule of Accrued Expenses and Other Accounts Payable - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Accounts Payable [Line Items] | ||
Employees and payroll accruals | $ 27,460 | $ 29,746 |
Accrued expenses | 9,296 | 10,239 |
Government authorities and other | 4,736 | 6,857 |
Total | $ 41,492 | $ 46,842 |
Long Term Debts (Details)
Long Term Debts (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Long Term Debts [Abstract] | |
Loan agreement, description | the Company entered into a loan agreement with an Israeli bank, pursuant to which, the Company borrowed $20,000 for a four-year term (the “Bank Loan”). The Bank Loan will mature on March 27, 2027, and will be repaid in four (4) equal annual instalments of $6,052 (including interest) starting March 27, 2024. The Bank Loan bears interest at the rate SOFR + 3.38%. The interest is paid on a yearly basis.On June 7, 2023, the Company entered into a loan agreement with an Israeli bank, pursuant to which, the Company borrowed ILS 60,000 thousands for a five-year term (the “Bank Loan”). The Bank Loan will mature on May 7, 2028, and will be repaid in five (5) equal annual instalments of ILS 12,000 thousands (not including interest) starting May 7, 2024. The Bank Loan bears an interest rate of prime + 0.92% per annum, payable in two semi-annual payments.These two Bank Loans, which may be prepaid under certain circumstances, are subject to various financial covenants which mainly consist of the following: |
Equity | $ 150 |
Financial debts not exceed percentage | 30% |
Long Term Debts (Details) - Sch
Long Term Debts (Details) - Schedule of Long Term Liabilities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Long Term Liabilities [Line items] | ||
Total long term debt | $ 52,267 | $ 30,412 |
Loans from banks and others [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Linkage basis | NIS | |
Total long term debt | $ 29,010 | 12,161 |
Loans from banks and others [Member] | Top of range [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Interest rate | 2.12% | |
Loans from banks and others [Member] | Bottom of range [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Interest rate | 7.20% | |
Bank loans [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Linkage basis | USD | |
Total long term debt | $ 47,634 | 36,408 |
Bank loans [Member] | Top of range [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Interest rate | 3.40% | |
Bank loans [Member] | Bottom of range [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Interest rate | 8.10% | |
Other long-term debts [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Linkage basis | JPY | |
Interest rate | 1.71% | |
Total long term debt | $ 58 | 61 |
Total Long Term Debt [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Total long term debt | $ 76,701 | 48,630 |
Less current maturities [Member] | ||
Schedule of Long Term Liabilities [Line items] | ||
Linkage basis | NIS, USD | |
Total long term debt | $ (24,435) | $ (18,218) |
Long Term Debts (Details) - S_2
Long Term Debts (Details) - Schedule of Maturity Dates - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Maturity Dates [Line Items] | ||
Total Maturity | $ 76,701 | $ 48,630 |
First year (Current maturities) [Member] | ||
Schedule of Maturity Dates [Line Items] | ||
Total Maturity | 24,435 | 18,218 |
Second year [Member] | ||
Schedule of Maturity Dates [Line Items] | ||
Total Maturity | 18,731 | 10,043 |
Third year [Member] | ||
Schedule of Maturity Dates [Line Items] | ||
Total Maturity | 14,617 | 9,818 |
Fourth year [Member] | ||
Schedule of Maturity Dates [Line Items] | ||
Total Maturity | 15,037 | 5,000 |
Fifth year and thereafter [Member] | ||
Schedule of Maturity Dates [Line Items] | ||
Total Maturity | $ 3,881 | $ 5,551 |
Related Parties Transactions (D
Related Parties Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Parties Transactions [Line Items] | |||
Acquired services | $ 3,678 | $ 6,990 | $ 5,615 |
Other receivables balances due parties | 5,494 | 8,519 | |
Trade payables balances due parties | 322 | 124 | |
Controlling Shareholder [Member] | |||
Related Parties Transactions [Line Items] | |||
Acquired services | $ 3,371 | $ 3,088 | $ 2,639 |
Leases (Details)
Leases (Details) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Jul. 31, 2020 | Dec. 31, 2023 | |
Leases [Line Items] | |||
Lease periods expiring | lease periods expiring between 2024 and 2034 | ||
Additional lease years | 10 years | ||
Expiry dates and renewal options, description | expiry dates varying between 2024 and 2026, with renewal options varying between 2024 and 2029 | ||
Terminate lease, term | terminate the lease after a 4-year term following a 12-month notice in advance, and an option to renew the lease to an additional 5-year term | ||
Operating lease term | 12 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities [Line Items] | ||
Undiscounted future lease payments | $ 33,251 | |
Less imputed interest | (5,744) | |
Present value of lease liabilities | 27,507 | $ 28,873 |
2024 [Member] | ||
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities [Line Items] | ||
Undiscounted future lease payments | 5,309 | |
2025 [Member] | ||
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities [Line Items] | ||
Undiscounted future lease payments | 4,367 | |
2026 [Member] | ||
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities [Line Items] | ||
Undiscounted future lease payments | 3,265 | |
2027 [Member] | ||
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities [Line Items] | ||
Undiscounted future lease payments | 2,561 | |
2028 [Member] | ||
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities [Line Items] | ||
Undiscounted future lease payments | 2,086 | |
2028 and thereafter [Member] | ||
Schedule of Maturity Analysis of Undiscounted Future Lease Payments for Lease Liabilities [Line Items] | ||
Undiscounted future lease payments | $ 15,663 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Information on leases - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Information on leases [Line Items] | ||
Expenses relating to operating lease costs | $ 2,225 | $ 1,930 |
Expenses relating to short-term leases | 62 | 109 |
Expenses relating to variable lease payments | 2,872 | 2,753 |
Total cash outflow for leases | $ 5,159 | $ 4,792 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Weighted Average Remaining Lease Terms | Dec. 31, 2023 |
Schedule of Weighted Average Remaining Lease Terms [Line Items] | |
Weighted average remaining lease term (years) | 11 years 9 months 18 days |
Weighted average discount rate | 3.89% |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of Right-of-Use Assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Additions during the year: | ||
Modification of leases | $ 976 | |
Adjustments arising from translating financial statements of foreign operations | (1,549) | $ (6,241) |
Buildings [Member] | ||
Additions during the year: | ||
Modification of leases | 910 | |
Motor vehicles [Member] | ||
Additions during the year: | ||
Modification of leases | 66 | |
Cost [Member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance as of beginning | 45,323 | 36,746 |
Additions during the year: | ||
New leases | 2,725 | 6,349 |
Modification of leases | 678 | |
Adjustments for indexation | 943 | 1,042 |
Adjustments arising from translating financial statements of foreign operations | 249 | (1,221) |
Acquisition of subsidiaries | 62 | 2,754 |
Termination of leases | (676) | (1,025) |
Balance as of ending | 49,602 | 45,323 |
Cost [Member] | Buildings [Member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance as of beginning | 40,452 | 33,241 |
Additions during the year: | ||
New leases | 1,150 | 4,881 |
Modification of leases | 589 | |
Adjustments for indexation | 871 | 947 |
Adjustments arising from translating financial statements of foreign operations | 37 | (1,228) |
Acquisition of subsidiaries | 62 | 2,714 |
Termination of leases | (298) | (692) |
Balance as of ending | 43,184 | 40,452 |
Cost [Member] | Motor vehicles [Member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance as of beginning | 4,871 | 3,505 |
Additions during the year: | ||
New leases | 1,575 | 1,468 |
Modification of leases | 89 | |
Adjustments for indexation | 72 | 95 |
Adjustments arising from translating financial statements of foreign operations | 212 | 7 |
Acquisition of subsidiaries | 40 | |
Termination of leases | (378) | (333) |
Balance as of ending | 6,418 | 4,871 |
Accumulated depreciation [Member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance as of beginning | 17,787 | 13,466 |
Additions during the year: | ||
Depreciation | 5,159 | 4,320 |
Adjustments arising from translating financial statements of foreign operations | 1,357 | 694 |
Termination of leases | (419) | (693) |
Balance as of ending | 23,884 | 17,787 |
Depreciated cost at December 31 | 25,718 | 27,536 |
Accumulated depreciation [Member] | Buildings [Member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance as of beginning | 15,250 | 11,943 |
Additions during the year: | ||
Depreciation | 3,689 | 3,151 |
Adjustments arising from translating financial statements of foreign operations | 929 | 665 |
Termination of leases | (192) | (509) |
Balance as of ending | 19,676 | 15,250 |
Depreciated cost at December 31 | 23,508 | 25,202 |
Accumulated depreciation [Member] | Motor vehicles [Member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance as of beginning | 2,537 | 1,523 |
Additions during the year: | ||
Depreciation | 1,470 | 1,169 |
Adjustments arising from translating financial statements of foreign operations | 428 | 29 |
Termination of leases | (227) | (184) |
Balance as of ending | 4,208 | 2,537 |
Depreciated cost at December 31 | $ 2,210 | $ 2,334 |
Share Based Payments (Details)
Share Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Payments [Line Items] | |||
Purchase of shares (in Shares) | 4,028 | ||
Exercise price per share (in Dollars per share) | $ 0.28 | ||
Exercise amount | $ 1,822 | ||
Share-based payment expense related to employee stock options | $ 3,798 | $ 2,079 | $ 956 |
Stock Option Plans of the Company [Member] | |||
Share Based Payments [Line Items] | |||
Reserved ordinary shares for issuance (in Shares) | 2,750,000 | ||
Aggregate ordinary shares available for future grants (in Shares) | 952,500 | ||
Option grant is exercisable | 10 years | ||
Expected dividend assumption | $ 0 | ||
Total intrinsic value of options exercised | $ 344 | 61 | |
Stock Option Plans of the Company [Member] | Bottom of range [Member] | |||
Share Based Payments [Line Items] | |||
Options vest | 3 years | ||
Stock Option Plans of the Company [Member] | Top of range [Member] | |||
Share Based Payments [Line Items] | |||
Options vest | 4 years | ||
Stock Option Plan of Comm-IT Solutions [Member] | |||
Share Based Payments [Line Items] | |||
Options to purchase its shares (in Shares) | 4,028 | ||
Options have fully vested upon their grant (in Shares) | 827 | ||
Unrecognized compensation cost related to non-vested options | $ 1,465 | ||
Weighted average period | 1 year 1 month 6 days | ||
Cost of Share-Based Payment [Member] | |||
Share Based Payments [Line Items] | |||
Share-based payment expense related to employee stock options | $ 3,798 | $ 2,079 | $ 956 |
Share Based Payments (Details)
Share Based Payments (Details) - Schedule of Employee Option Activity $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares | |
Two Thousand Seven Plan [Member] | |
Schedule of Employee Option Activity [Abstract] | |
Number of options, Outstanding Beginning | 26,250 |
Weighted average exercise price, Outstanding Beginning | $ 0.91 |
Weighted average remaining contractual term, Outstanding Beginning | 5 years 11 months 12 days |
Aggregate intrinsic value, Outstanding Beginning | $ | $ 397 |
Number of options, Exercisable | |
Weighted average exercise price, Exercisable | |
Weighted average remaining contractual term, Exercisable | |
Aggregate intrinsic value, Exercisable | $ | |
Number of options, Exercised | (6,250) |
Weighted average exercise price, Exercised | $ 3.51 |
Number of options, Forfeited | (20,000) |
Weighted average exercise price, Forfeited | |
Number of options, Outstanding Ending | |
Weighted average exercise price, Outstanding Ending | |
Weighted average remaining contractual term, Outstanding Ending | |
Aggregate intrinsic value, Outstanding Ending | $ | |
Comm-IT Solutions 2022 Plan [Member] | |
Schedule of Employee Option Activity [Abstract] | |
Number of options, Outstanding Beginning | 4,028 |
Weighted average exercise price, Outstanding Beginning | $ 264.67 |
Weighted average remaining contractual term, Outstanding Beginning | 7 years 11 months 8 days |
Aggregate intrinsic value, Outstanding Beginning | $ | $ 7,499 |
Number of options, Exercisable | 1,847 |
Weighted average exercise price, Exercisable | $ 27.72 |
Weighted average remaining contractual term, Exercisable | 6 years 11 months 4 days |
Aggregate intrinsic value, Exercisable | $ | $ 3,760 |
Number of options, Granted | |
Weighted average exercise price, Granted | |
Number of options, Outstanding Ending | 4,028 |
Weighted average exercise price, Outstanding Ending | $ 256.79 |
Weighted average remaining contractual term, Outstanding Ending | 6 years 11 months 8 days |
Aggregate intrinsic value, Outstanding Ending | $ | $ 7,276 |
Share Based Payments (Details_2
Share Based Payments (Details) - Schedule of Options Outstanding | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
0.28 [Member] | |
Schedule of Options Outstanding [Abstract] | |
Options outstanding, Exercise price | 3,238 |
Weighted average remaining contractual life, Exercise price | 6 years 11 months 1 day |
Options exercisable, Exercise price (in Shares) | shares | 1,736 |
Weighted average exercise price of exercisable options, Exercise price (in Dollars per share) | $ / shares | $ 0.28 |
455 [Member] | |
Schedule of Options Outstanding [Abstract] | |
Options outstanding, Exercise price | 297 |
Weighted average remaining contractual life, Exercise price | 6 years 11 months 26 days |
Options exercisable, Exercise price (in Shares) | shares | 111 |
Weighted average exercise price of exercisable options, Exercise price (in Dollars per share) | $ / shares | $ 455 |
1,822 [Member] | |
Schedule of Options Outstanding [Abstract] | |
Options outstanding, Exercise price | 493 |
Weighted average remaining contractual life, Exercise price | 6 years 11 months 26 days |
Options exercisable, Exercise price (in Shares) | shares | |
Weighted average exercise price of exercisable options, Exercise price (in Dollars per share) | $ / shares | |
Stock Option Plan of Comm-IT Solutions [Member] | |
Schedule of Options Outstanding [Abstract] | |
Options outstanding, Exercise price | 4,028 |
Weighted average remaining contractual life, Exercise price | 6 years 11 months 8 days |
Options exercisable, Exercise price (in Shares) | shares | 1,847 |
Weighted average exercise price of exercisable options, Exercise price (in Dollars per share) | $ / shares | $ 27.72 |
Share Based Payments (Details_3
Share Based Payments (Details) - Schedule of Fair Value of the Options Granted Using the Binomial Model | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Schedule of Fair Value of the Options Granted Using the Binomial Model [Line Items] | |
Share price (in Dollars per share) | $ 2,110 |
Contractual life | 8 years |
Expected exercise factor | 1.5 |
Dividend yield | 0% |
Expected volatility (weighted average) | 41% |
Bottom of range [Member] | |
Schedule of Fair Value of the Options Granted Using the Binomial Model [Line Items] | |
Risk-free interest rate | 3.28% |
Fair value of option at the grant date (in Dollars per share) | $ 1,078 |
Top of range [Member] | |
Schedule of Fair Value of the Options Granted Using the Binomial Model [Line Items] | |
Risk-free interest rate | 3.65% |
Fair value of option at the grant date (in Dollars per share) | $ 2,126 |
Share Based Payments (Details_4
Share Based Payments (Details) - Schedule of Share-Based Payment Expense Related to Employee Stock Option - Cost of share-based payment [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Share-Based Payment Expense Related to Employee Stock Option [Abstract] | |||
Selling and marketing expenses | $ (225) | $ (56) | $ 956 |
General and administrative expenses | 4,023 | 2,135 | |
Total | $ 3,798 | $ 2,079 | $ 956 |
Employee Benefit Liabilities (D
Employee Benefit Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Liabilities [Abstract] | |||
Severance expenses | $ 5,464 | $ 7,078 | $ 5,267 |
Annual compensation percentage | 100% | ||
Employee contributions percentage | 3% |
Employee Benefit Liabilities _2
Employee Benefit Liabilities (Details) - Schedule of Defined Benefit Plans - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Defined Benefit Plans [Abstract] | ||
Defined benefit obligation | $ 2,665 | $ 2,476 |
Fair value of plan assets | (1,549) | (1,575) |
Net defined benefit liability | $ 1,116 | $ 901 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Jul. 31, 2021 USD ($) | Sep. 30, 2016 USD ($) | Sep. 30, 2016 ILS (₪) | |
Commitments and Contingencies [Line Items] | ||||
Bank deposits | $ 728 | |||
Won damages | $ 1,600 | $ 2,400 | ||
Filed lawsuit seeking damages (in New Shekels) | ₪ | ₪ 34,106 | |||
Customers [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Lease cost | 1,776 | |||
Customer One [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Lease cost | $ 902 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 14, 2023 | Mar. 09, 2023 | Aug. 11, 2022 | Mar. 02, 2022 | Aug. 12, 2021 | Mar. 08, 2021 | Aug. 09, 2017 |
Equity [Abstract] | |||||||
Dividend distributed, percentage | 75% | ||||||
Dividend distribution per share | $ 0.327 | $ 0.3 | $ 0.29 | $ 0.216 | $ 0.23 | $ 0.21 | |
Aggregate amount | $ 16,100 | $ 14,700 | $ 14,237 | $ 10,612 | $ 11,480 | $ 10,297 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Accumulated Other Comprehensive Incomeloss [Abstract] | ||
Accumulated foreign currency translation adjustments | $ (10,340) | $ (6,585) |
Accumulated unrealized gain on derivative instruments, net | 26 | 26 |
Total other comprehensive income (loss) | $ (10,314) | $ (6,559) |
Income Tax (Details)
Income Tax (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2017 | Dec. 31, 2016 ILS (₪) | Nov. 30, 2022 USD ($) | Nov. 30, 2022 ILS (₪) | Dec. 31, 2021 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 ILS (₪) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2015 | |
Income Tax (Details) [Line Items] | ||||||||||
Corporate tax rate | 6% | |||||||||
Tax rate (in New Shekels) | $ (1,345) | $ (1,756) | $ 283 | |||||||
Preferred tax rate percentage | 12% | 12% | 12% | 16% | ||||||
Tax rate percentage | 7.50% | |||||||||
Annual revenues percentage | 25% | |||||||||
Consolidated revenues (in New Shekels) | ₪ | ₪ 10,000,000,000 | |||||||||
Total accumulated tax-exempt earnings amount | $ 7,100 | ₪ 25,022 | ||||||||
Tax expenses | $ 711 | ₪ 2,502 | ||||||||
Least percentage | 90% | 90% | ||||||||
Cash and cash equivalents (in Dollars) | $ 27,134 | |||||||||
Operating loss carryforwards amount (in Dollars) | $ 9,874 | |||||||||
Bottom of Range [Member] | ||||||||||
Income Tax (Details) [Line Items] | ||||||||||
Preferred tax rate percentage | 6% | 6% | ||||||||
Formula Telecom Solutions, Ltd. [Member] | ||||||||||
Income Tax (Details) [Line Items] | ||||||||||
Operating loss carryforwards amount (in Dollars) | $ 9,225 | |||||||||
BEPS [Member] | ||||||||||
Income Tax (Details) [Line Items] | ||||||||||
Tax rate (in New Shekels) | ₪ | ₪ 10,000,000,000 | |||||||||
SPTE [Member] | ||||||||||
Income Tax (Details) [Line Items] | ||||||||||
Corporate tax rate | 6% | 6% | 6% | |||||||
Israeli [Member] | ||||||||||
Income Tax (Details) [Line Items] | ||||||||||
Corporate tax rate | 23% | 23% | 23% | |||||||
England [Member] | ||||||||||
Income Tax (Details) [Line Items] | ||||||||||
Tax loss carryforwards (in Dollars) | $ 3,684 | |||||||||
U.S [Member] | ||||||||||
Income Tax (Details) [Line Items] | ||||||||||
Tax loss carryforwards (in Dollars) | $ 13,898 |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of Presentation Net Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Presentation Net Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred taxes assets | $ 6,729 | $ 3,618 |
Deferred tax liabilities | (11,610) | (10,686) |
Total | $ (4,881) | $ (7,068) |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of Components of the Company’s Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax liabilities: | ||
Gross deferred tax liabilities | $ 19,488 | $ 18,586 |
Deferred tax assets: | ||
Gross deferred tax assets | 14,607 | 11,518 |
Net deferred tax liabilities | (4,881) | (7,068) |
Intangible assets [Member] | ||
Deferred tax liabilities: | ||
Gross deferred tax liabilities | 13,789 | 12,311 |
Deferred tax assets: | ||
Gross deferred tax assets | 1,495 | 540 |
Reserves and allowances [Member] | ||
Deferred tax liabilities: | ||
Gross deferred tax liabilities | 530 | 1,142 |
Deferred tax assets: | ||
Gross deferred tax assets | 4,054 | 5,628 |
Right-of-use assets [Member] | ||
Deferred tax liabilities: | ||
Gross deferred tax liabilities | 5,169 | 5,133 |
Carry-forwards losses [Member] | ||
Deferred tax assets: | ||
Gross deferred tax assets | 3,668 | 349 |
Lease liabilities [Member] | ||
Deferred tax assets: | ||
Gross deferred tax assets | $ 5,390 | $ 5,001 |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of Income Tax - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Domestic | $ 11,108 | $ 11,368 | $ 7,847 |
Foreign | 5 | 6,304 | 6,123 |
Total | 11,113 | 17,672 | 13,970 |
Deferred taxes: | |||
Domestic | (1,588) | (1,318) | (1,149) |
Foreign | 409 | (5,216) | (2,543) |
Total | (1,179) | (6,534) | (3,692) |
Taxes on income | $ 9,934 | $ 11,138 | $ 10,278 |
Income Tax (Details) - Schedu_4
Income Tax (Details) - Schedule of Theoretical Tax Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Theoretical Tax Expense [Abstract] | |||
Income before income taxes, as per the statement of operations | $ 52,436 | $ 57,417 | $ 45,617 |
Statutory tax rate in Israel | 23% | 23% | 23% |
Tax computed at the statutory tax rate | $ 12,060 | $ 13,205 | $ 10,494 |
Tax adjustment in respect of different tax rates | (1,345) | (1,756) | 283 |
Deferred taxes on losses for which deferred taxes were not created | (2,764) | (511) | (80) |
Tax-deductible costs, not included in the accounting costs | (2,680) | (1,041) | |
Non-deductible expenses and tax expenses in respect of prior years, net | 534 | 2,670 | 1,001 |
Uncertain tax positions and other | 1,448 | 210 | (379) |
Taxes on income | $ 9,934 | $ 11,138 | $ 10,278 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue Recognition [Line Items] | |
Aggregate amount | $ 105,800,000 |
Percentage of performance obligations | 68% |
Deferred revenues | $ 9,808 |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of Deferred Revenues from Contracts with Customers - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Deferred Revenues from Contracts with Customers [Line Items] | |||
Trade receivables (net of allowance for credit losses of $5,416 and $7,066 at December 31, 2022 and 2023, respectively) | $ 108,385 | $ 118,126 | |
Unbilled receivables | 15,953 | 26,114 | |
Contract assets | 6,760 | 4,240 | |
Long-term unbilled receivables | [1] | 2,240 | 2,548 |
Long-term trade receivables | [1] | 1,029 | 735 |
Deferred revenues (short-term contract liabilities) | $ 13,537 | $ 9,808 | |
[1]Included in Other long-term receivables in the consolidated statements of financial position. |
Revenue Recognition (Details)_2
Revenue Recognition (Details) - Schedule of Deferred Revenues from Contracts with Customers (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Deferred Revenues from Contracts with Customers [Line Items] | ||
Net of allowance for credit losses | $ 7,066 | $ 5,416 |
Revenue Recognition (Details)_3
Revenue Recognition (Details) - Schedule of Past due but not Impaired Trade Receivables - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Neither past due nor impaired [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | $ 71,545 | $ 67,793 |
Up to 30 days [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | 30,191 | 24,150 |
31-60 days [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | 7,065 | 16,869 |
61-90 days [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | 3,407 | 12,863 |
91-120 days [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | 1,801 | 4,125 |
Over 121 days [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | 15,818 | 13,311 |
Total [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | 129,826 | 139,111 |
Unpaid deferred revenues [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | (14,375) | (15,569) |
Allowance for credit losses [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | (7,066) | (5,416) |
Total trade receivables, net [Member] | ||
Schedule of Past due but not Impaired Trade Receivables [Line Items] | ||
Total trade receivables, net | $ 108,385 | $ 118,126 |
Revenue Recognition (Details)_4
Revenue Recognition (Details) - Schedule of Revenue by timing of Revenue Recognition - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Revenue by timing of Revenue Recognition [Line Items] | |||
Products and services transferred over time | $ 502,358 | $ 533,862 | $ 449,391 |
Products transferred at a point in time | 32,694 | 32,930 | 30,934 |
Total | $ 535,052 | $ 566,792 | $ 480,325 |
Selected Statements of Income_3
Selected Statements of Income Data (Details) - Schedule of Research and Development Costs, Net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Research and Development Costs, Net [Line Items] | |||
Total costs | $ 13,511 | $ 13,149 | $ 12,188 |
Less - capitalized software costs | (3,183) | (3,059) | (3,193) |
Research and development, net | $ 10,328 | $ 10,090 | $ 8,995 |
Selected Statements of Income_4
Selected Statements of Income Data (Details) - Schedule of Selling and Marketing Expenses - Selling and marketing expenses [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Selling and Marketing Expenses [Line Items] | |||
Salary and related expenses | $ 31,188 | $ 33,474 | $ 26,100 |
Advertising expenses | 2,802 | 2,676 | 2,522 |
Cost of share-based payment | (225) | (56) | 956 |
Others | 10,735 | 10,763 | 8,569 |
Total selling and marketing expenses | $ 44,500 | $ 46,857 | $ 38,147 |
Selected Statements of Income_5
Selected Statements of Income Data (Details) - Schedule of General and Administrative Expenses - General and administrative expenses [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of General and Administrative Expenses [Line Items] | |||
Salary and related expenses | $ 27,425 | $ 21,492 | $ 24,072 |
Subcontractors | 4,726 | 5,335 | 3,842 |
Cost of share-based payment | 4,023 | 2,135 | |
Others | 4,637 | 8,590 | 3,308 |
Total general and administrative expenses | $ 40,811 | $ 37,552 | $ 31,222 |
Selected Statements of Income_6
Selected Statements of Income Data (Details) - Schedule of Financial Income and Expenses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Financial Income and Expenses [Line Items] | |||
Interest expenses on loans and borrowings | $ 5,039 | $ 1,743 | $ 615 |
Interest expenses attributed to leases | 964 | 691 | 719 |
Bank charges, negative foreign exchange differences and other financial expenses | 3,224 | 2,559 | 2,468 |
Total financial expenses | 9,227 | 4,993 | 3,802 |
Financial income: | |||
Interest income attributed to bank deposits | 1,166 | 305 | 36 |
Interest income from deposits, positive foreign exchange differences and other financial income | 3,735 | 1,087 | 77 |
Total financial income | 4,901 | 1,392 | 113 |
Financial expenses, net | $ 4,326 | $ 3,601 | $ 3,689 |
Selected Statements of Income_7
Selected Statements of Income Data (Details) - Schedule of Computation of B asic and Diluted Net Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Computation of B asic and Diluted Net Earnings Per Share [Line Items] | |||
Net income attributable to Magic shareholders (in Dollars) | $ 37,031 | $ 40,470 | $ 29,767 |
Basic earnings per share - weighted average shares outstanding | 49,095,760 | 49,089,044 | 49,055,082 |
Effect of dilutive securities | 2,660 | 42,267 | 44,972 |
Diluted earnings per share – adjusted weighted average shares outstanding | 49,098,420 | 49,131,311 | 49,100,054 |
Basic and diluted net earnings per share (in Dollars per share) | $ 0.75 | $ 0.82 | $ 0.61 |
Operating Segments (Details)
Operating Segments (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Segments (Details) [Line Items] | ||
Reportable business segments | two | |
IT Professional Services [Member] | ||
Operating Segments (Details) [Line Items] | ||
Company revenues accounted | 11.20% | 15% |
Operating Segments (Details) -
Operating Segments (Details) - Schedule of Reported Segment Results of Operation - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
2021 | |||
Total revenues | $ 535,052 | $ 566,792 | $ 480,325 |
Expenses | 477,944 | 505,030 | 428,202 |
Operating income (loss) | 57,108 | 61,762 | 52,123 |
Depreciation and amortization | 20,553 | 19,795 | 19,837 |
Software services [Member] | |||
2021 | |||
Total revenues | 92,906 | 99,374 | 95,589 |
Expenses | 71,863 | 72,115 | 74,863 |
Operating income (loss) | 21,043 | 27,259 | 20,726 |
Depreciation and amortization | 9,717 | 10,321 | 10,619 |
IT professional services [Member] | |||
2021 | |||
Total revenues | 442,146 | 467,418 | 384,736 |
Expenses | 400,949 | 427,446 | 347,712 |
Operating income (loss) | 41,197 | 39,972 | 37,024 |
Depreciation and amortization | 10,432 | 9,102 | 8,846 |
Unallocated expense [Member] | |||
2021 | |||
Total revenues | |||
Expenses | 5,132 | 5,469 | 5,627 |
Operating income (loss) | (5,132) | (5,469) | (5,627) |
Depreciation and amortization | $ 404 | $ 372 | $ 372 |
Operating Segments (Details) _2
Operating Segments (Details) - Schedule of Total Revenues - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Total Revenues [Line Items] | |||
Total revenues | $ 535,052 | $ 566,792 | $ 480,325 |
United States [Member] | |||
Schedule of Total Revenues [Line Items] | |||
Total revenues | 250,842 | 308,485 | 254,342 |
IL [Member] | |||
Schedule of Total Revenues [Line Items] | |||
Total revenues | 214,129 | 205,258 | 180,462 |
Europe [Member] | |||
Schedule of Total Revenues [Line Items] | |||
Total revenues | 55,180 | 39,247 | 30,085 |
Japan [Member] | |||
Schedule of Total Revenues [Line Items] | |||
Total revenues | 10,847 | 10,121 | 11,443 |
Other [Member] | |||
Schedule of Total Revenues [Line Items] | |||
Total revenues | $ 4,054 | $ 3,681 | $ 3,993 |
Operating Segments (Details) _3
Operating Segments (Details) - Schedule of Long-Lived Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Long-Lived Assets [Line Items] | |||
Total long-lived assets | $ 250,429 | $ 246,630 | $ 227,345 |
US [Member] | |||
Schedule of Long-Lived Assets [Line Items] | |||
Total long-lived assets | 77,120 | 82,325 | 76,369 |
IL [Member] | |||
Schedule of Long-Lived Assets [Line Items] | |||
Total long-lived assets | 158,144 | 148,819 | 138,071 |
Europe [Member] | |||
Schedule of Long-Lived Assets [Line Items] | |||
Total long-lived assets | 7,596 | 7,885 | 4,423 |
JP [Member] | |||
Schedule of Long-Lived Assets [Line Items] | |||
Total long-lived assets | 4,222 | 4,696 | 5,543 |
Other [Member] | |||
Schedule of Long-Lived Assets [Line Items] | |||
Total long-lived assets | $ 3,347 | $ 2,905 | $ 2,939 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Events [Member] $ / shares in Millions, $ in Millions | Apr. 04, 2024 USD ($) $ / shares |
Subsequent Events [Line Items] | |
Cash dividend | $ 12.5 |
Shareholder per share (in Dollars per share) | $ / shares | $ 10 |
Equal installments | $ 2.5 |