Israel's Magic Seeks to Buy Software Firms

TEL AVIV, July 30 (Reuters) - Israel's Magic Software Enterprises Ltd is in talks to acquire one or more U.S. software application companies, the chairman of Magic's parent company Formula Systems Ltd said on Sunday.

"We are pursuing some deals and believe in the near future we are going to conclude at least one," Formula chairman Dan Goldstein told Reuters.

"All the companies are in the United States and all are involved in the implementation of large applications or software solutions."

Israel's Maariv newspaper reported on Sunday that Magic was in advanced negotiations to acquire a U.S. software application provider for $60 million in a deal aimed at expanding Magic's penetration of the U.S. market.

Goldstein said he could not comment on a specific deal nor would he reveal the names of the companies involved in the negotiations with Magic.

"We have in our pipeline private and public companies and we will have to choose," he said.

"We believe that during this summer we are going to conclude at least one major deal," he added.

Formula, a software conglomerate, controls 50 percent of Magic directly and indirectly.