needs. The Company’s subsidiaries are Magic Software Enterprises Ltd. (Magic Software), Matrix IT Ltd. (Matrix), and Sapiens International Corporation N.V. (Sapiens). The Company operates in two business areas: IT services and proprietary software solutions. In February 2010, a subsidiary of Magic Software completed the acquisition of the consulting and staffing business of a United States-based IT services company. In October 2009, the Company completed the sale of its entire 100% shareholdings in its subsidiary nextSource.