Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2013
Document Information [Line Items]
Entity Registrant Name	MAGIC SOFTWARE ENTERPRISES LTD
Entity Central Index Key	0000876779
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	MGIC
Entity Common Stock, Shares Outstanding	37,155,355
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2013
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 35,134	$ 37,744
Available-for-sale marketable securities (Note 4)	854	890
Trade receivables (net of allowance for doubtful accounts of $ 2,103 and $ 3,313 at December 31, 2012 and 2013, respectively)	31,976	28,367
Other accounts receivable and prepaid expenses (Note 6)	5,209	6,696
Total current assets	73,173	73,697
LONG-TERM RECEIVABLES:
Severance pay fund	403	351
Long term deferred tax asset	1,674	1,565
Other long-term receivables	2,118	722
Total long-term receivables	4,195	2,638
PROPERTY AND EQUIPMENT, NET (Note 7)	1,773	1,898
INTANGIBLE ASSETS, NET (Note 8)	32,549	30,058
GOODWILL (Note 9)	55,313	44,663
Total assets	167,003	152,954
LIABILITIES AND EQUITY
Short term debt (Note 11)	1,055	12
Trade payables	4,149	4,722
Accrued expenses and other accounts payable (Note 10)	16,937	17,176
Deferred tax liability	2,567	3,422
Deferred revenues	3,294	4,160
Total current liabilities	28,002	29,492
ACCRUED SEVERANCE PAY	1,275	1,245
LONG TERM LIABILITIES:
Long term debt (Note 11)	2,274	12
Liabilities due to acquisition activities (Note 3)	1,396	1,192
Long term deferred tax liability	2,204	738
Total noncurrent liabilities	5,874	1,942
COMMITMENTS AND CONTINGENCIES (Note 15)
REDEEMABLE NON-CONTROLLING INTEREST	2,721	1,914
EQUITY (Note 13):
Ordinary shares of NIS 0.1 par value - Authorized: 50,000,000 shares at December 31, 2012 and 2013; Issued and Outstanding: 36,626,728 and 37,155,355 shares at December 31, 2012 and 2013, respectively	826	811
Additional paid-in capital	127,060	125,288
Accumulated other comprehensive (loss)	(172)	(586)
Accumulated (deficit) earnings	430	(7,727)
Total Magic Software Enterprises equity	128,144	117,786
Non-controlling interests	987	575
Total equity	129,131	118,361
Total liabilities, redeemable non-controlling interest and equity	$ 167,003	$ 152,954

CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Allowance for doubtful accounts trade receivables, net (in dollars)	$ 3,313	$ 2,103
Ordinary stock of NIS, par value (in dollars per share)	$ 0.1	$ 0.1
Ordinary stock of NIS, shares authorized	50,000,000	50,000,000
Ordinary stock of NIS, shares issued	37,155,355	36,626,728
Ordinary stock of NIS, shares outstanding	37,155,355	36,626,728

CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues (Note 17):
Software	$ 23,254	$ 23,684	$ 23,110
Maintenance and technical support	22,685	22,384	16,751
Consulting services	99,019	80,312	73,467
Total revenues	144,958	126,380	113,328
Cost of revenues:
Software	6,648	7,439	5,771
Maintenance and technical support	2,949	3,238	2,250
Consulting services	76,296	62,716	59,237
Total cost of revenues	85,893	73,393	67,258
Gross profit	59,065	52,987	46,070
Operating costs and expenses:
Research and development, net (Note 14a)	3,706	2,947	2,047
Selling and marketing	23,066	22,990	20,147
General and administrative	13,166	10,642	9,159
Total operating costs and expenses	39,938	36,579	31,353
Operating income	19,127	16,408	14,717
Financial income (expense), net (Note 14b)	(684)	10	221
Other income (expense), net	(12)	136	125
Income before taxes on income	18,431	16,554	15,063
Taxes on income (tax benefit) (Note 12)	1,575	94	(203)
Net income	16,856	16,460	15,266
Change in redeemable non-controlling interests	546	184	0
Net income attributable to non-controlling interests	430	93	222
Net income attributable to Magic Software Enterprises Shareholders	$ 15,880	$ 16,183	$ 15,044
Net earnings per share attributable to Magic Software Enterprises' shareholders (Note 16):
Basic and diluted earnings per share (in dollars per share)	$ 0.43	$ 0.44	$ 0.41

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net income	$ 16,856	$ 16,460	$ 15,266
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net	495	(621)	(423)
Unrealized gain from derivative instruments, net	0	29	(23)
Unrealized loss (gain) from available-for-sale securities	(35)	28	(73)
Total other comprehensive income (loss), net of tax	460	(564)	(519)
Total comprehensive income	17,316	15,896	14,747
Comprehensive income attributable to redeemable non-controlling interests	807	157	0
Comprehensive income attributable to non-controlling interests	476	96	169
Comprehensive income attributable to Magic Software Enterprises' shareholders	$ 16,033	$ 15,643	$ 14,578

STATEMENTS OF CHANGES IN EQUITY (USD $) In Thousands, except Share data	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2010	$ 88,865	$ 794	$ 122,917	$ 447	$ (35,293)	$ 0
Balance (in shares) at Dec. 31, 2010		35,909,606
Exercise of stock options	875	14	861	0	0	0
Exercise of stock options (in shares)		580,414
Stock-based compensation expenses	633		633	0	0	0
Cost related to issuance of Ordinary shares	(21)	0	(21)	0	0	0
Non-controlling interest as part of acquisitions	1,766	0	0	0	0	1,766
Acquisition of non-controlling interests	(1,240)	0	226	0	0	(1,466)
Other comprehensive income	(519)	0	0	(466)	0	(53)
Net income	15,266	0	0	0	15,044	222
Balance at Dec. 31, 2011	105,625	808	124,616	(19)	(20,249)	469
Balance (in shares) at Dec. 31, 2011		36,490,020
Exercise of stock options	309	3	306	0	0	0
Exercise of stock options (in shares)		136,708
Stock-based compensation expenses	515	0	515	0	0	0
Dividend	(3,661)	0	0	0	(3,661)	0
Acquisition of non-controlling interests	(314)	0	(149)	0	0	(165)
Other comprehensive income	(564)	0	0	(567)	0	3
Net income	16,460	0	0	0	16,183	268
Balance at Dec. 31, 2012	118,361	811	125,288	(586)	(7,727)	575
Balance (in shares) at Dec. 31, 2012		36,626,728
Exercise of stock options	1,462	15	1,447	0	0	0
Exercise of stock options (in shares)		528,627
Stock-based compensation expenses	325	0	325	0	0	0
Dividend	(7,787)	0	0	0	(7,723)	(64)
Other comprehensive income	460	0	0	414	0	46
Net income	16,856	0	0	0	15,880	430
Balance at Dec. 31, 2013	$ 129,131	$ 826	$ 127,060	$ (172)	$ 430	$ 987
Balance (in shares) at Dec. 31, 2013		37,155,355

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 16,856	$ 16,460	$ 15,266
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,380	7,444	5,040
Interest expenses related to liabilities in connection with acquisitions	0	48	112
Accrued severance pay, net	0	8	143
Loss on sale of property and equipment	10	0	10
Stock-based compensation expenses	325	515	633
Amortization of marketable securities premium, accretion of discount	0	0	(14)
Gain on sale of subsidiary's operation	0	(136)	(136)
Decrease (increase) in trade receivables, net	473	11	(5,405)
Decrease (increase) in other long term and short term accounts receivable and prepaid expenses	(397)	145	(1,753)
Increase in trade payables	(700)	780	446
Increase (decrease) in accrued expenses and other accounts payable	(1,589)	(2,279)	953
Increase (decrease) in deferred revenues	(1,765)	(1,131)	1,593
Change in deferred income taxes, net	687	1,083	(1,650)
Net cash provided by operating activities	22,280	22,948	15,238
Cash flows from investing activities:
Capitalized software development costs	(4,713)	(4,969)	(5,222)
Purchase of property and equipment	(497)	(510)	(497)
Cash paid in conjunction with acquisitions, net of acquired cash	(16,557)	(7,627)	(23,640)
Proceeds from sale of subsidiary's operation	0	136	136
Proceeds from sale of property and equipment	60	0	0
Proceeds from maturity of marketable securities	0	343	1,557
Proceeds from short-term bank deposits	0	3,601	21,974
Change in loans to employees and other deposits ,net	0	(34)	17
Investment in short-term bank deposit	0	(1,366)	(24,153)
Net cash used in investing activities	(21,707)	(10,426)	(29,828)
Cash flows from financing activities:
Proceeds from exercise of options by employees	1,462	309	875
Issuance (expense on issuance) of Ordinary shares	0	0	(21)
Dividend paid	(7,787)	(3,661)	0
Short-term credit, net	(47)	14	20
Purchase of non-controlling interest	(168)	(87)	(1,377)
Long term loan received	3,307	0	0
Repayment of long-term loans	(95)	0	0
Net cash used in financing activities	(3,328)	(3,425)	(503)
Effect of exchange rate changes on cash and cash equivalents	145	(64)	143
Increase (decrease) in cash and cash equivalents	(2,610)	9,033	(14,950)
Cash and cash equivalents at the beginning of the year	37,744	28,711	43,661
Cash and cash equivalents at end of the year	35,134	37,744	28,711
Supplementary information on investing and financing activities not involving cash flows:
Deferred acquisition payment	1,581	3,103	0
Contingent acquisition payment	3,981	1,192	750
Supplemental disclosure of cash flow activities:
Income taxes	1,519	1,250	1,015
Interest	$ 34	$ 17	$ 8

GENERAL

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1:-

GENERAL

Magic Software Enterprises Ltd., an Israeli company, and its subsidiaries ("the Group") is a global provider of software platforms and professional services that accelerate the planning, development, deployment and integration of on-premise, mobile and cloud business applications ("the Magic technology"). 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 Group also offers a complete portfolio of IT professional services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental staffing services. The Company reports its results on the basis of two reportable business segments: software services (which include proprietary and non-proprietary software and related services) and IT professional services (see Note 16 for further details). The principal markets of the Group are Europe, United States, Japan and Israel (see Note 16).

For information about the Company's holdings in subsidiaries and affiliates, see Appendix A to the consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 2:-

SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), applied on a consistent basis, as follows:

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates. The most significant assumptions are employed in estimates used in determining values of goodwill and identifiable intangible assets and their subsequent impairment analysis, revenue recognition, tax assets and tax positions, legal contingencies, research and development capitalization, contingent consideration related to acquisitions and stock-based compensation costs. Actual results could differ from those estimates.

Financial statements in United States dollars

A substantial portion of the revenues and expenses of the Company and certain of its subsidiaries is generated in U.S. dollars ("dollar"). The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and certain of its subsidiaries is the dollar.

Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with the Financial Accounting Standards Board ("FASB) Accounting Standards Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses of the remeasurement of monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate.

For those foreign subsidiaries whose functional currency is not the dollar, all balance sheet amounts have been translated using the exchange rates in effect at each balance sheet date. Statement of income amounts have been translated using the average exchange rate prevailing during each year. Such translation adjustments are reported as a component of other comprehensive income (loss) in equity.

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. Intercompany balances and transactions, including profit from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation.

Changes in the parent's ownership interest in a subsidiary with no change of control are treated as equity transactions, with any difference between the amount of consideration paid and the change in the carrying amount of the non-controlling interest, recognized in equity.

Non-controlling interests of subsidiaries represent the non-controlling share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Redeemable non-controlling interests are classified as mezzanine equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the Non controlling interest book value, in accordance with the requirements of ASC 810 "Consolidation" and ASC 480-10-S99-3A, "Distinguishing Liabilities from Equity".

The following table provides a reconciliation of the redeemable non-controlling interests:

January 1, 2013		1,914
Net income attributable to redeemable non-controlling interests		546
Foreign currency translation adjustments		261

December 31, 2013		2,721

Cash and cash equivalents

Cash and cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.

Cash and cash equivalent includes amounts held primarily in U.S. dollars, Euro, Japanese Yen and British Pound.

Short-term deposits and restricted deposits

Short-term deposits include deposits with original maturities of more than three months and less than one year. Such deposits are presented at cost (including accrued interest) which approximates their fair value. Restricted deposits are used to secure certain Group's ongoing projects and are classified under other receivables.

Marketable securities

The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments – Debt and Equity Securities”. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available for sale. Available for sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in equity. Realized gains and losses on sale of investments are included in “financial income, net” and are derived using the specific identification method for determining the cost of securities.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income, net”.

The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in “net gain (impairment net of gains) on sale of marketable securities previously impaired” in the statements of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income.

Property and equipment, net

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates:

		Years

Computers and peripheral equipment		3
Office furniture and equipment		7 - 15 (mainly 7)
Motor vehicles		7
Software		3 – 5 (mainly 5)
Leasehold improvements		Over the shorter of the lease term or useful economic life

Business combinations

The Company accounts for business combinations under ASC 805, "Business Combinations". ASC 805 requires recognition of assets acquired, liabilities assumed, non-controlling interest and redeemable non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date. As required by ASC 820, "Fair Value Measurements and disclosures" the Company applies assumptions that marketplace participants would consider in determining the fair value of assets acquired, liabilities assumed, non-controlling interest and redeemable non-controlling interest in the acquiree at the acquisition date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in earnings.

Variable interest entities

ASC 810, "Consolidation" provides a framework for identifying variable interest entities (or "VIEs") and determining when a company should include the assets, liabilities, non-controlling interests and results of activities of a VIE in its consolidated financial statements.

The Company's assessment of whether an entity is a VIE and the determination of the primary beneficiary requires judgment and involves the use of significant estimates and assumptions. Those include, among others, forecasted cash flows, their respective probabilities and the economic value of certain preference rights. In addition, such assessment also involves estimates of whether a group entity can finance its current activities, until it reaches profitability, without additional subordinated financial support.

Effective as of January 1, 2010, the Company applies updated guidance for the consolidation of VIEs. The guidance qualitative approach, based on which enterprise has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the variable interest entity. Determination about whether an enterprise should consolidate a VIE is required to be evaluated continuously as changes to existing relationships or future transactions.

One of the Company's U.S. based consulting and staffing services business acquired through one of its wholly owned subsidiaries on January 17, 2010 is considered to be a VIE. The subsidiary is the primary beneficiary of the VIE, as a result of the fact that it holds the power to direct the activities of the acquired business, which significantly impacts its economic performance, and has the right to receive benefits accruing from the acquired business.

Research and development costs

Research and development costs incurred in the process of software development before establishment of technological feasibility are charged to expenses as incurred. Costs incurred subsequent to the establishment of technological feasibility are capitalized according to the principles set forth in ASC 985-20, "Costs of Software to be Sold, Leased or Marketed".

The Company and its subsidiaries establish technological feasibility upon completion of a detailed program design or working model.

Research and development costs incurred in the process of developing product enhancements are generally charged to expenses as incurred.

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 4-5 years). The Company assesses the recoverability of these intangible assets on a regular basis by determining whether the amortization of the asset over its remaining economical useful life can be recovered through undiscounted future operating cash flows from the specific software product sold. During the years ended December 31, 2011, 2012 and 2013, no such unrecoverable amounts were identified.

Long-Lived Assets

The Company long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plants and equipment.

Impairment of long-lived assets and intangible assets subject to amortization

The Company's long-lived assets are reviewed for impairment in accordance with ASC 360, "Property, Plant and Equipment" whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

As required by ASC 820, "Fair Value Measurements and disclosures" the Company applies assumptions that marketplace participants would consider in determining the fair value of long-lived assets (or asset groups).

Intangible assets with finite lives are amortized over their economic useful life using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. Distribution rights, acquired technology and non-compete were amortized on a straight line basis and customer relationships and backlog were amortized on an accelerated method basis over a period between 3.5 - 15 years based on the intangible assets identified.

During the years ended December 31, 2011, 2012 and 2013, no impairment was identified.

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350,"Intangibles - Goodwill and Other", goodwill is subject to an annual impairment test or more frequently if impairment indicators are present. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. As of December 31, 2013, the Company operates in two operating segments.

For the Company's 2010 and 2011 annual impairment tests and as required by ASC 350, the Company compared the fair value of each of its reporting units to its carrying value ('step 1'). If the fair value exceeded the carrying value of the reporting unit net assets, goodwill is considered not impaired, and no further testing is required. If the carrying value exceeded the fair value of the reporting unit, then the implied fair value of goodwill is determined by subtracting the fair value of all the identifiable net assets from the fair value of the reporting unit. An impairment loss is recorded for the excess, if any, of the carrying value of goodwill over its implied fair value ('step 2').

As required by ASC 820, "Fair Value Measurements and Disclosures", the Company applies assumptions that market place participants would consider in determining the fair value of each reporting unit.

In 2010 and 2011 in order to determine the fair value of its two reporting units, the Company implemented an 'income approach'. Under the income approach expected future cash flows are discounted to their present value using an appropriate rate of return. Judgments and assumptions related to future cash flows (projected revenues, operating expenses, and capital expenditures), future short-term and long-term growth rates, and weighted average cost of capital, are believed to be similar to those of market participants and to represent both the specific risks associated with the business, and capital market conditions, are inherent in developing the discounted cash flow model.

In September 2011, the FASB issued ASU 2011-08 which amends the rules for testing goodwill for impairment. Under the new rules, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary.

The Company adopted the provisions of ASU 2011-08 to its reporting units, for its annual impairment test in 2012 and 2013. This analysis determines that no indicators of impairment existed primarily because (the Company's overall financial performance has been stable since its respective acquisitions, and since forecasts of operating income and cash flows generated by the Company's reporting units appear sufficient to support the book values of the net assets of each reporting unit. In addition the Company's market capitalization has consistently exceeded its book value by a sufficient margin,

For newly acquired reporting units the Company determines the fair value of each reporting unit using the Income Approach, which utilizes a discounted cash flow model, as it believes that this approach best approximates the reporting unit's fair value. Judgments and assumptions related to revenue, operating income, future short-term and long-term growth rates, weighted average cost of capital, interest, capital expenditures, cash flows, and market conditions are inherent in developing the discounted cash flow model. The Company considers historical rates and current market conditions when determining the discount and growth rates to use in its analyses. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges for its goodwill.

The Company performed annual impairment tests during the fourth quarter of each of 2011, 2012 and 2013 and did not identify any impairment losses (see Note 9).

Revenue recognition

The Company derives its revenues from licensing the rights to use software (proprietary and non-proprietary), provision of related professional services, maintenance and technical support as well as from other IT professional services. The Company sells its products and services primarily through its direct sales force and indirectly through distributors and value added resellers.

The Company accounts for its software sales in accordance with ASC 985-605, "Software Revenue Recognition". Software license revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the vendor's fee is fixed or determinable, no further obligation exists and collectability is probable.

Maintenance and support includes annual maintenance contracts providing for unspecified upgrades for new versions and enhancements on a when-and-if-available basis for an annual fee. 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.

Maintenance and support revenue included in multiple element arrangements is deferred and recognized on a straight-line basis over the term of the maintenance and support agreement.

As required by ASC 985-605, the Company allocates revenues to the software component of its multiple-element arrangements using the residual method when vendor specific objective evidence ("VSOE") of fair value exists for the undelivered elements of the support and maintenance agreements. VSOE is based on the price charged when an element is sold separately or renewed. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue.

The Company generally does not grant a right of return to its customers. When a right of return exists, the Company defers revenue until the right of return expires, at which time revenue is recognized provided that all other revenue recognition criteria are met.

Revenue from professional services related to both software and the IT professional services businesses consists of billable hours for services provided and is recognized as the services are rendered.

Arrangements that include professional services bundled with licensed software and other software related elements, are evaluated to determine whether those services are essential to the functionality of other elements of the arrangement. When services are considered essential to the software, revenues under the arrangement are recognized using contract accounting based on ASC 605-35, "Construction-Type and Production-Type Contracts", on a percentage of completion method based on inputs measures. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss for the entire contract. During the years ended December 31, 2011, 2012 and 2013, no such estimated losses were identified.

When professional services are not considered essential to the functionality of other elements of the arrangement, revenue allocable to the services is recognized as the services are performed, using VSOE of fair value. In most cases, the Company has determined that the services are not considered essential to the functionality of other elements of the arrangement.

Deferred revenue includes unearned amounts received under maintenance, support and services contracts, and amounts received from customers but not yet recognized as revenues.

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 and requires significant judgment.

Severance pay

The Company's and its Israeli subsidiary's obligation for severance pay with respect to their Israeli employees (for the period for which the employees were not included under Section 14 of the Severance Pay Law, 1963) is calculated pursuant to the Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date, and are presented on an undiscounted basis (referred to as the "Shut Down Method"). Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's obligation for all of its Israeli employees is fully provided for by monthly deposits with insurance policies and by an accrual.

The Group has a number of savings plans in the United States that qualify under Section 401(k) of the Internal Revenue Code. U.S employees may contribute up to 100% of their pretax salary, but not more than statutory limits. Matching contributions are discretionary and are up to 3% of the participants contributions. When contributions are granted, they are invested in proportion to each participant's voluntary contributions in the investment options provided under the plan.

The carrying value of deposited funds includes profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to the Israeli Severance Pay Law or labor agreements and are recorded as an asset in the Company's consolidated balance sheet.

The Company and its Israeli subsidiaries’ agreements with most of their Israeli employees are in accordance with Section 14 of the Severance Pay Law -1963, mandating that upon termination of such employees' employment, all the amounts accrued in their insurance policies shall be released to them instead of severance compensation. Upon release of deposited amounts to the employee, no additional liability exists between the parties regarding the matter of severance pay and no additional payments shall be made by the Company or its subsidiaries to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company and its subsidiaries are is legally released from their obligations to employees once the deposit amounts have been paid.

Severance expenses for the years ended December 31, 2011, 2012 and 2013 amounted to approximately $ 609, $ 829 and $ 1,132, respectively.

Advertising expenses

Advertising expenses are charged to selling and marketing expenses, as incurred. Advertising expenses for the years ended December 31, 2011, 2012 and 2013 amounted to $ 313, $ 556 and $ 306, respectively.

Income taxes

The Company and its subsidiaries account for income taxes in accordance with ASC 740, "Income Taxes". The ASC prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. Deferred tax assets and liabilities are classified as current or non-current according to the expected reversal dates.

The Company utilizes a two-step approach for recognizing and measuring uncertain tax positions accounted for in accordance with an amendment of ASC 740 "Income Taxes." Under the first step the Company evaluates a tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, based on its technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement with the tax authorities. The Company accrued interest and penalties related to unrecognized tax benefits in its provisions for income taxes.

Basic and diluted net earnings per share

Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share."

A portion of the outstanding stock options have been excluded from the calculation of the diluted earnings per share because such securities are anti-dilutive. The total weighted average number of Ordinary shares related to the outstanding options excluded from the calculations of diluted earnings per share was 550,430, 669,887 and 536,877 for the years ended December 31, 2011, 2012 and 2013, respectively.

Stock-based compensation

The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" which requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income.

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, net of estimated forfeitures.

The Company measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant using the Binomial option-pricing model ("the Binomial model"). The Binomial model for option pricing requires a number of assumptions, of which the most significant are the suboptimal exercise factor and expected stock price volatility. The suboptimal exercise factor is estimated based on employees' historical option exercise behavior.

The suboptimal exercise factor is the ratio by which the stock price must increase over the exercise price before employees are expected to exercise their stock options. Expected volatility is 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 is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the contractual term of the options. Historically the Company did not hold any foreseeable plans to pay dividends and therefore used an expected dividend yield of zero in its past years option pricing models. In September 2012, the Company adopted a dividend distribution policy according to which it will distribute in each year a dividend of up to 50% of its annual distributable profits. Therefore as of September 2012 the Company uses an expected dividend yield for its grants.

The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Estimated forfeitures are based on actual historical pre-vesting forfeitures.

For awards with performance conditions, compensation cost is recognized over the requisite service period if it is 'probable' that the performance conditions will be satisfied, as defined in ASC 450-20-20, "Loss Contingencies."

The fair value for the Company's stock options granted to employees and directors was estimated using the following weighted-average assumptions:

	2011	2013

Dividend yield	0%	3%
Expected volatility	63.3% - 65.3%	57.7% - 60.2%
Risk-free interest rate	2.1%	2.6%
Expected forfeiture (employees)	8.4%	-
Expected forfeiture (executives)	5.2%	5.2%
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	2.7	-
Suboptimal exercise multiple (executives)	3.2	3.2

During the years ended December 31, 2011, 2012 and 2013, the Company recognized stock-based compensation expense related to employee stock options in the amount of $ 633, $ 515 and $ 325, respectively, as follows:

	Year ended December 31,
	2011		2012		2013

Cost of revenue	$	4	$	16	$	11
Research and development		54		114		67
Selling and marketing		92		82		85
General and administrative		483		303		162

Total stock-based compensation expense	$	633	$	515	$	325

Concentrations of credit risk

Financial instruments that potentially subject the Company and its subsidiaries to concentration of credit risk consist principally of cash and cash equivalents, short-term deposits, marketable securities, trade receivables and foreign currency derivative contracts.

The Company's cash and cash equivalents and short-term deposits are invested primarily in deposits with major banks worldwide, mainly in the United States and Israel, however, such 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. The Company believes that such institutions are of high rating and therefore bear low risk.

The Company's marketable securities include investments in commercial and government bonds and foreign banks. The Company's marketable securities are considered to be highly liquid and have a high credit standing. In addition, management considered its portfolios in foreign banks to be well-diversified (also refer to Note 4).

Trade receivables of the Company and its subsidiaries are derived from sales to customers located primarily in the United States, Europe, Japan, South Africa and Israel. The Company performs ongoing credit evaluations of its customers and excluding 2013to date has not experienced any material losses. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The expense related to doubtful accounts for the years ended December 31, 2011, 2012 and 2013 was $ 136, $ 420 and $ 1,285, respectively.

The Company has entered into foreign exchange forward contracts intended to protect against the changes in value of forecasted non-dollar currency cash flows related to salary and related expenses. These derivative instruments are designed to offset the Company's non-dollar currency exposure (see "Derivative instruments" below).

Fair value measurements

The Company accounts for certain assets and liabilities at fair value under ASC 820, "Fair Value Measurements and Disclosures". Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 -

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets;

Level 2 -

Significant other observable inputs based on market data obtained from sources independent of the reporting entity;

Level 3 -

Unobservable inputs which are supported by little or no market activity;

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company categorized each of its fair value measurements in one of these three levels of hierarchy.

Assets and liabilities measured at fair value on a recurring basis are comprised of marketable securities, foreign currency forward contracts and contingent consideration of acquisitions (see Note 5).

The carrying amounts reported in the balance sheet for cash and cash equivalents, short term bank deposits, trade receivables, other accounts receivable, short-term bank credit, trade payables and other accounts payable approximate their fair values due to the short-term maturities of such instruments.

Comprehensive income (loss)

The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income." This Statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income (loss) relate to gain and loss on foreign currency translation adjustments, unrealized gain and loss on derivative instruments designated as hedges and unrealized gain and loss on available-for-sale marketable securities.

Derivative instruments

A material portion of the Company's revenues, expenses and earnings is exposed to changes in foreign exchange rates. Depending on market conditions, foreign exchange risk is also managed through the use of derivative financial instruments. These financial instruments serve to protect net income against the impact of the translation into U.S. dollars of certain foreign exchange-denominated transactions. The derivative instruments hedge or offset exposures to Euro, Japanese Yen and NIS exchange rate fluctuations.

ASC 815, "Derivatives and Hedging," requires companies to recognize all of their derivative instruments as either assets or liabilities in their balance sheet at fair value. Derivative instruments that are designated and qualify as hedges of forecasted transactions (i.e., cash flow hedges) are carried at fair value with the effective portion of a derivative's gain or loss recorded in other comprehensive income and subsequently recognized in earnings in the same period or periods in which the hedged forecasted transaction affects earnings. For derivative instruments that are not designated and qualified as hedging instruments, the gains or losses on the derivative instruments are recognized in current earnings during the period of the change in fair values.

The derivative instruments used by the Company are designed to reduce the market risk associated with the exposure of its underlying transactions to fluctuations in currency exchange rates.

The Company has instituted a foreign currency cash flow hedging program in order to hedge against the risk of overall changes in future cash flows. The Company hedges portions of its forecasted expenses denominated in NIS with currency forwards contracts and put and call options. These forward and option contracts are designated as cash flow hedges.

For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change.

For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change.

The notional principal of foreign exchange contracts to purchase NIS with U.S. dollars was $ 519 and $ 0 as of December 31, 2012 and 2013, respectively. The notional principal of foreign exchange contracts to purchase U.S. dollars with Euros was $ 0 as of December 31, 2012 and $ 0 as of December 31, 2013. The notional principal of foreign exchange contracts to purchase U.S. dollars with Japanese Yen was $1,276 as of December 31, 2012 and $ 0 as of December 31, 2013.

At December 31, 2013, the Company did not have any cash flow hedges.

The following tables present fair value amounts and gains and losses of derivative instruments and related hedged items:

	Fair values of derivative instruments
	Assets
		December 31,
	Balance sheet item	2012		2013
Assets

Derivatives not designated as hedging	"Other accounts receivable and prepaid expenses"	$	140	$	-
Cash flow hedging:
Foreign exchange option contracts	" Other accounts receivable and prepaid expenses"		16		-

Total derivatives		$	156	$	-

	Statements	Gain (loss) recognized in the statements of income
	of	Year ended December 31,
	income item	2011		2012		2013

Cash flow hedging:
Foreign exchange forward and option contracts	"Operating expenses"	$	63	$	-	$	-

Derivatives not designated as hedging:
Foreign exchange forward contracts	"Financial expenses, net"		59		245		139

Total derivatives		$	122	$	245	$	139

Reclassification

Certain amounts in prior years' financial statements have been reclassified to conform with the current year's presentation (see Note 3). The reclassification had no effect on previously reported net income, equity or cash flow.

Impact of recently issued accounting standards

In July 2013, the Financial Accounting Standards Board (“FASB”) issued guidance that requires that a nonrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This net presentation is required unless a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at thereporting date or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset to settle any additional income tax that would result from the disallowance of the unrecognized tax benefit. This guidance is effective for fiscal year beginning after December 15, 2013, with early adoption permitted. The company believes that the adoption of this standard will not have a material impact on its consolidated financial statements.

In March 2013, the FASB issued further guidance on accounting for the release of a cumulative translation adjustment into net income when a parent company either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets and provides guidance for the acquisition in stages of a controlling interest in a foreign entity. This guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. The company believes that the adoption of this standard will not have a material impact on its consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income." Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income ("AOCI") by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. ASU 2013-02 is effective for the Company on January 1, 2013. Since this standard only impacts presentation and disclosure requirements, its adoption did not have a material impact on the Company's consolidated results of operations or financial condition.

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

NOTE 3:-

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS

On December 27, 2011, the Company completed the acquisition of the AppBuilder activity of BluePhoenix Solutions ("AppBuilder"), a leading provider of value-driven legacy IT modernization solutions, for $ 12,565. During 2012, the Company paid an additional amount of $ 140 with respect to the acquisition. AppBuilder is a comprehensive application development infrastructure used by many enterprises around the world. This premier enterprise application development environment is a powerful, model-driven tool that enables development teams to build, deploy, and maintain large-scale, custom-built business applications. The Company believes the acquisition will broaden its product portfolio and strengthens the presence in numerous global markets. Acquisition related costs were immaterial.

The acquisition was accounted for by the purchase method. The results of operations were included in the consolidated financial statements of the Company commencing January 1, 2012.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed:

Net liabilities	$	(3,248)
Intangible assets		7,251
Goodwill		8,702

Net assets acquired	$	12,705

Identifiable intangible assets, including customer relationship were valued using a variation of the income approach. This method utilized a forecast of expected cash inflows, cash outflows and contributory charges for economic returns on tangible and intangible assets employed.

Amounts of $ 4,430, $ 2,138 and $ 683 of the purchase price were allocated to customer relationships, developed technology and backlog, respectively. The Company amortizes the customer relationships, backlog and acquired technology over periods of 15 years, 15 years and 3.5 years, respectively.

In July 2012, the Company acquired an 80% interest in Comm-IT Group, (including "Comm-IT Technology Solutions" and "Comm-IT Software"), a software and systems development house that specializes in providing advanced IT and communications services and solutions, for a total consideration of $ 8,933, of which $ 4,990 was paid upon closing and the remaining $ 3,943 is to be paid during the next two years, of which, $ 1,192 is contingent upon the acquired business meeting certain operational targets in 2012 and 2013, and $ 2,751 in deferred payments. The Purchaser and the seller hold mutual Call and Put options respectively for the remaining 20% interest in the group. As a result of the Put option, the Company recorded redeemable non-controlling interest in the amount of $ 1,750.

As of December 31, 2012 and 2013, the Company's liability towards the sellers is estimated at $ 4,031 and $1,522, respectively. The Company believes that the acquisition of this business will enable it to expand its professional services offering and leverage its relationships with top tier customers. Acquisition related costs were immaterial.

In accordance with ASC 805-30-35-1, the Company re-measures the contingent consideration based on the fair value at each reporting date until the contingency is resolved or the payment is made, while the changes in fair value are recognized in earnings in the financial expenses using the interest method over the period. The contingent payment was recorded at present value and was amortized using the interest method during the relevant period into financial expenses.

The acquisition was accounted for by the purchase method. The results of operations were included in the consolidated financial statements of the Company commencing July 1, 2012.

On May 2013 the company finalized the process of identifying the tangible and intangible assets for its acquisition. The following table summarize the fair value of the assets and liabilities acquired:

	As reported on December 31, 2012		Adjustment		Modified

Net assets	$	1,219	$	14	$	1,233
Non-controlling interest		(1,880)		130		(1,750)
Intangible assets		3,873		397		4,270
Goodwill		5,809		439		6,248
Deferred tax liability, net		-		(1,068)		(1,068)

Net assets acquired	$	9,021	$	(88)	$	8,933

On February 26, 2013, the Company purchased Pilat Europe Limited Ltd. and Pilat (North America) Inc. which provides custom human capital management solutions, for a total consideration of $ 1,233. The Company believes the acquisition will broaden its application product portfolio, customer base and strengthen its presence in numerous global markets. Acquisition related costs were immaterial.

The acquisition was accounted for by the purchase method. The results of operations of these entities were included in the consolidated financial statements of the Company commencing March 1, 2013.

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net assets	$	406
Intangible assets		331
Goodwill		496

Total assets acquired	$	1,233

The estimated fair values of the tangible and intangible assets are provisional and are based on information that was available as of the acquisition date to estimate the fair value of these amounts. The Company's management believes the information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair value reflected are subject to change. The Company expects to finalize the tangible and intangible assets valuation and complete the acquisition accounting as soon as practicable as but no later than the measurement period.

On May 16, 2013, the Company purchased Valinor Ltd, a consulting company specializing in project and product consultation, installation and implementation of databases for a total consideration of $ 1,618, of which $ 339 was paid upon closing, $ 339 was paid in November 2013, $340 is payable by May 25, 2014, and $ 600 is contingently payable upon the business meeting certain operational targets in 2013 and 2014. On December 2013 the company increased the total consideration according to 2013 results by $230 recorded in the Company’s statement of operations. The Company believes the acquisition will broaden its professional service offering to its existing and new customers in the fields of projects and product consultation and installation and implementation of databases. Acquisition related costs were immaterial.

The acquisition was accounted for by the purchase method .

The results of operations of these entities were included in the consolidated financial statements of the Company commencing May 15, 2013.

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net assets	$	28
Intangible assets		464
Goodwill		1,126

Total assets acquired	$	1,618

The estimated fair values of the tangible and intangible assets are provisional and are based on information that was available as of the acquisition date to estimate the fair value of these amounts. The Company believes the information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair value reflected are subject to change. The Company expects to finalize the tangible and intangible assets valuation and complete the acquisition accounting as soon as practicable as but no later than the measurement period.

c. On May 30, 2013, the Company purchased Dario Solutions IT Ltd, a consulting company specializing in integration services of Microsoft products in enterprise IT environments for a total consideration of $ 3,723, of which $ 1,100 was paid upon closing, $ 906 is to be paid by February 28, 2014 and the remaining $ 1,717 is contingently payable upon the business meeting certain operational targets in 2013, 2014 and 2015. The company believes the acquisition will complement the company’s’ professional services offering to its existing and new customers in the field of software integration and advanced on target IT solutions for large and mid- range customers. Acquisition related costs were immaterial.

The acquisition was accounted for by the purchase method .

The results of operations of these entities were included in the consolidated financial statements of the Company commencing June 1, 2013.

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net Assets	$	371
Intangible assets		707
Goodwill		2,645

Total assets acquired	$	3,723

The estimated fair values of the tangible and intangible assets are provisional and are based on information that was available as of the acquisition date to estimate the fair value of these amounts. The Company believes the information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair value reflected are subject to change. The Company expects to finalize the tangible and intangible assets valuation and complete the acquisition accounting as soon as practicable as but no later than the measurement period.

On November 11, 2013 the Company acquired the operations of Allstates Technical Services, LLC, a US-based full-service provider of consulting and staffing solutions for IT, Engineering and Telecom personnel, for a total consideration of $10,963. The company believes the acquisition will broadens its existing US footprint and adds leading Fortune 500 companies to its customer base, making an important contribution to its growth strategy in the IT professional services operating segment. The results of operations were included in the consolidated financial statements of the Company commencing November 11, 2013.

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net Assets	$	3,063
Intangible assets		2,874
Goodwill		5,026

Total assets acquired	$	10,963

The estimated fair values of the tangible and intangible assets are provisional and are based on information that was available as of the acquisition date to estimate the fair value of these amounts. The Company believes the information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair value reflected are subject to change. The Company expects to finalize the tangible and intangible assets valuation and complete the acquisition accounting as soon as practicable as but no later than the measurement period.

In addition, the Company acquired additional activities during the year ended December 31, 2013, whose influence on the financial statements of the Company was immaterial, for a total consideration of $ 0.9 million.

Below are certain unaudited pro forma combined statements of income data for the year ended December 31, 2012 and 2013, respectively, as if the acquisition in Note 3 had occurred at January 1, 2012, after giving effect to purchase accounting adjustments, including amortization of intangible assets. This pro forma financial information is not necessarily indicative of the combined results that would have been attained had the acquisition taken place at the beginning of 2012, nor is it necessarily indicative of future results.

	Year ended December 31,
	2012		2013
	Unaudited

Total revenues	$	158,132	$	170,661
Net income attributable to Magic Software Enterprises shareholders	$	17,206	$	17,098
Earnings per share
Basic	$	0.47	$	0.46
Diluted	$	0.46	$	0.46

MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2013

Marketable Securities [Abstract]

Marketable Securities [Text Block]

NOTE 4:- MARKETABLE SECURITIES

The Group invests in marketable debt and equity securities, which are classified as available-for-sale. The following is a summary of marketable securities:

	December 31,
	2012								2013
	Amortized cost		Unrealized losses		Unrealized gains		Market value		Amortized cost		Unrealized losses		Unrealized gains		Market value
Available-for-sale:

Governmental bonds	$	407	$	-	$	20	$	427	$	407	$	-	$	3	$	410
Commercial bonds		192		-		45		237		190		-		25		215
Equity funds		118		-		108		226		119		-		110		229

Total available-for-sale marketable securities	$	717	$	-	$	173	$	890	$	716	$	-	$	138	$	854

The amortized costs of available-for-sale debt securities at December 31, 2013, by contractual maturities, are shown below:

			Gross unrealized gains (losses)
	Amortized cost		Gains		Losses		Estimated fair value

Due in one year or less	$	597	$	28	$	-	$	625

	$	597	$	28	$	-	$	625

The actual maturity dates may differ from the contractual maturities because debtors may have the right to call or prepay obligations without penalties.

The following is the change in the other comprehensive income of available-for-sale securities during 2012:

	Other comprehensive income

Other comprehensive income from available-for-sale securities as of January 1, 2012	$	145

Unrealized loss from available-for-sale securities		28

Other comprehensive income from available-for-sale securities as of December 31, 2012	$	173

The following is the change in the other comprehensive income of available-for-sale securities during 2013:

	Other comprehensive income

Other comprehensive income from available-for-sale securities as of January 1, 2013	$	173

Unrealized gain from available-for-sale securities		(35)

Other comprehensive income from available-for-sale securities as of December 31, 2013	$	138

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 5:- FAIR VALUE MEASUREMENTS

In accordance with ASC 820, the Company measures its investment in marketable securities and foreign currency derivative contracts at fair value. Generally marketable securities are classified within Level 1, this is because these assets are valued using quoted prices in active markets. Foreign currency derivative contracts and certain corporate bonds are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

Contingent consideration is classified within Level 3. The Company values the Level 3 contingent consideration using discounted cash flow of the expected future payments, whose inputs include interest rate.

The Company's financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates:

	December 31, 2013
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Government bonds	$	410	$	-	$	-	$	410
Corporate bonds		-		215		-		215
Equity fund		229		-		-		229

Total financial assets	$	639	$	215	$	-	$	854

Liabilities:
Contingent consideration	$	-	$	-	$	3,981	$	3,981

Total financials liabilities	$	-	$	-	$	3,981	$	3,981

	December 31, 2012
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Government bonds	$	427	$	-	$	-	$	427
Corporate bonds		-		237		-		237
Equity fund		226		-		-		226
Foreign currency derivative contracts		-		156		-		156

Total financial assets	$	653	$	393	$	-	$	1,046

Liabilities:
Contingent consideration	$	-	$	-	$	1,942	$	1,942

Total financials liabilities	$	-	$	-	$	1,942	$	1,942

Fair value measurements using significant unobservable inputs (Level 3):

	December 31,
	2012			2013

Opening balance	$	1,046	$	1,942
Increase in contingent consideration		1,192		2,459
Decrease in contingent consideration		(315)		(750)
Amortization of interest		19		330

Closing balance	$	1,942	$	3,981

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES

12 Months Ended

Dec. 31, 2013

Other Accounts Receivable and Prepaid Expenses Disclosure [Abstract]

Other Accounts Receivable and Prepaid Expenses Disclosure [Text Block]

NOTE 6:- OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES

	December 31,
	2012		2013

Short-term lease deposits	$	615	$	773
Prepaid expenses		1,039		1,156
Government authorities		2,313		862
Deferred tax assets, net		2,522		1,949
Restricted deposits		163		289
Other		44		180

	$	6,696	$	5,209

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7:- PROPERTY AND EQUIPMENT

	December 31,
	2012		2013
Cost:

Leasehold improvements	$	470	$	546
Computers and peripheral equipment		9,826		10,106
Office furniture and equipment		1,875		2,639
Motor vehicles		244		98
Software		2,479		1,962

		14,894		15,351
Accumulated depreciation:

Leasehold improvements		242		288
Computers and peripheral equipment		9,420		9,657
Office furniture and equipment		1,435		1,947
Motor vehicles		124		68
Software		1,775		1,618

		12,996		13,578

Depreciated cost	$	1,898	$	1,773

Depreciation expenses amounted to $ 630, $ 757 and $ 656 for the years ended December 31, 2011, 2012 and 2013, respectively.

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

NOTE 8:-

INTANGIBLE ASSETS

Intangible assets:

	December 31,
	2012		2013
Original amounts:

Capitalized software costs	$	54,599	$	59,069
Customer relationships		19,802		23,843
Backlog and non-compete agreement		1,112		1,554
Acquired technology		2,138		3,112

		77,651		87,578
Accumulated amortization:

Capitalized software costs		41,191		45,075
Customer relationships		5,756		8,895
Backlog and non-compete agreement		472		630
Acquired technology		174		429

		47,593		55,029

Intangible assets, net	$	30,058	$	32,549

Amortization expenses amounted to $ 4,410, $ 6,687 and $ 7,724 for the years ended December 31, 2011, 2012 and 2013, respectively.

The estimated future amortization expense of intangible assets as of December 31, 2013 is as follows:

2014		7,207
2015		6,390
2016		5,291
2017		3,717
2018		2,722
2019 and thereafter		7,222

	$	32,549

GOODWILL

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Disclosure [Text Block]

NOTE 9:-

GOODWILL

Changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2013 according to the Company's reporting units are as follows (see also 16):

	IT professional services		Software services		Total

As of January 1, 2012	$	11,908	$	26,989	$	38,897

Business combination		6,248		-		6,248
Adjustments due to finalized purchase price allocation		(120)		140		20
Foreign currency translation adjustments		-		(502)		(502)

As of December 31, 2012		18,036		26,627		44,663

Business combination		9,007		1,036		10,043
Classifications		430		-		430
Foreign currency translation adjustments		1,022		(845)		177

As of December 31, 2013		28,495		26,818		55,313

The Company performed annual impairment tests during the fourth quarter of 2013 and did not identify any impairment losses (see Note 2).

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE

12 Months Ended

Dec. 31, 2013

Accounts Payable and Accrued Liabilities [Abstract]

Accured Expenses and Other Accounts Payable [Text Block]

NOTE 10:-

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE

	December 31,
	2012		2013

Employees and payroll accruals	$	7,073	$	6,675
Accrued expenses		1,917		2,925
Deferred and contingent payments related to acquisitions		3,828		4,167
Government authorities		2,175		2,495
Other		2,195		675

	$	17,188	$	16,937

LONG TERM DEBT

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

NOTE 11:- LONG TERM DEBT

			December 31,
	Interest rate as of December 31, 2013		2012		2013
	%
Loans from banks in USD (1)		3.7%	$	-	$	2,904
Loan from banks and other in NIS		4.1%-5.9%		-		405
Other long term debt				24		20

Less – Current maturities (included under “short-term debt”)				(12)		(1,055)


			$	12	$	2,274

(1)

Loan from a US bank, received on November 2013 in the amount of $3,000, paid monthly in equal payment, for a period of 36 months bearing interest of Libor+3.5%. The loan agreement contains various covenants which require us to maintain certain financial ratios. The Company has met the financial ratios as of December 31, 2013.

(2)

In November 2013, the Company entered into a three-year $3,000 credit facility. As of December 31, 2013, the company did not utilized the credit facility.

TAXES ON INCOME

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 12:-

TAXES ON INCOME

Israeli taxation:

Corporate tax rate in Israel:

Taxable income of Israeli companies is subject to tax at the rate of 24% in 2011, 25% in 2012 and 25% in 2013 and 26.5% in 2014.

Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 ("the Law"):

Certain production and development facilities of the Company have been granted "Approved Enterprise" status pursuant to the Law, which provides certain tax benefits to its investment programs including tax exemptions and reduced tax rates. Income not eligible for Approved Enterprise benefits is taxed at regular rates.

In the event of distribution of dividends from the said tax-exempt income, the amount distributed will be subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise's income. The tax-exempt income attributable to the benefit period of the Approved Enterprise programs mentioned above can be distributed to shareholders without subjecting the Company to taxes, only upon the complete liquidation of the applicable Israeli subsidiary.

The entitlement to the above benefits is conditional upon the fulfilling of the conditions stipulated by the Laws and regulations. Should they fail to meet such requirements in the future, income attributable to its Approved Enterprise programs could be subject to the statutory Israeli corporate tax rate and they could be required to refund a portion of the tax benefits already received, with respect to such programs. As of December 31, 2013, management believes that the Company's Israeli subsidiaries are in compliance with all the conditions required by the Law.

Effective January 1, 2011, the Knesset enacted the Law for Economic Policy for 2011 and 2012 (Amended Legislation), and among other things, amended the Law, ("the Amendment"). According to the Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire preferred income. The Company will be able to opt to apply (the waiver is non-recourse) the Amendment and from then on it will be subject to the amended tax rates as follows: 2014 - 16%. As of December 31, 2013, the Company has not applied for this amendment. The profits of these “Industrial Companies” will be freely distributable as dividends, subject to a withholding tax of 20% (on distribution commencing January 1, 2014) or lower, under an applicable tax treaty. Certain “Special Industrial Companies” that meet more stringent criteria (significant investment, R&D or employment thresholds), will enjoy further reduced tax rates of 5% in Zone A and 8% elsewhere. In order to be classified as a “Special Industrial Company,” the approval of three governmental authorities in Israel is required.

The Company and certain of its Israeli subsidiaries intend to apply the new incentives regime under Amendment 68 to its Approved Enterprises in Israel starting in 2014 and believes it will qualify as an “Industrial Company” under the new law.

The Company's Israeli entities have received final tax assessments for their Israeli tax return filings through the year 2008.

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.

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 taxes.

Net operating loss carryforwards:

As of December 31, 2013, the Company and its Israeli subsidiaries had operating loss carryforwards of $ 12,412, which can be carried forward and offset against taxable income in the future for an indefinite period.

The Company's subsidiaries in Europe had estimated total available tax loss carryforwards of $ 5,252 as of December 31, 2013, to offset against future taxable income.

The Company's subsidiaries in the U.S. had estimated total available tax loss carryforwards of $ 2,835 as of December 31, 2013, which can be carried forward and offset against taxable income for a period of up to 20 years, from the year the loss was incurred.

Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the "change in ownership" provisions ("annual limitations") of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

Income before taxes on income:

	Year ended December 31,
	2011		2012			2013

Domestic	$	7,197	$	10,462	$	16,165
Foreign		7,866		6,092		2,266

	$	15,063	$	16,554	$	18,431

Taxes on income:

Taxes on income (tax benefit) consist of the following:

	Year ended December 31,
	2011		2012			2013
Current:

Domestic	$	447	$	(1,291)	$	(1,277)
Foreign		1,000		302		781

		1,447		(989)		(496)
Deferred taxes:

Domestic		(1,800)		414		2,673
Foreign		150		669		(602)

		(1,650)		1,083		2,071

Taxes on income (tax benefit)	$	(203)	$	94	$	1,575

Deferred tax assets and liabilities:

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company and its subsidiaries deferred tax assets are as follows:

	December 31,
	2012			2013

Net operating loss carryforwards	$	5,938	$	5,293
Allowances, reserves and intangible assets		809		1,207

Deferred tax assets before valuation allowance		6,747		6,500
Less - valuation allowance		(888)		(1,154)

Deferred tax assets		5,859		5,346
Capitalized software costs		(1,772)		(1,723)

Deferred tax assets, net	$	4,087	$	3,623

Both current deferred tax liabilities and long term deferred tax liabilities are in respect of acquired intangible assets.

	December 31,
	2012			2011

Current tax assets	$	2,522	$	1,949
Non-current tax assets		1,565		1,674

Deferred tax assets	$	4,087	$	3,623

Current taxes are included under other accounts receivable and prepaid expenses and non-current tax assets are included under other long term receivables.

Significant components of the Company and its subsidiaries deferred tax liability are as follows:

	December 31,
	2012			2013

Current liabilities	$	3,422	$	2,567
Non-current liabilities		750		2,204

Net deferred tax liabilities	$	4,172	$	4,771

Reconciliation of the theoretical tax expense to the actual tax expense:

Reconciling items between the 2011, 2012 and 2013 statutory tax rate (24%, 25% and 25%, respectively) of the Company and the effective tax rate is presented in the following table:

	Year ended December 31,
	2011			2012				2013

Income before taxes, as reported in the consolidated statements of income	$	15,063		$	16,554		$	18,431

Statutory tax rate		24	%		25	%		25	%

Theoretical tax expenses on the above amount at the Israeli statutory tax rate	$	3,615		$	4,139		$	4,609
Tax adjustment in respect of different tax rates		866			444			484
Deferred taxes on losses for which full valuation allowance was provided in the past		(37)			651			(304)
Changes in valuation allowance		(4,429)			(2,003)			-
Tax benefits in respect of prior years, net		(73)		*)	(1,126)			203
Nondeductible expenses		40			20			95
Uncertain tax position and other differences		(185)		**)	(2,031)			(3,512)

Income tax (tax benefit)	$	(203)		$	94		$	1,575

In 2012, the Company reversed its write-off of tax prepayment advances from prior years since the Company believes the utilization of the prepayments is more-likely-than not in the near future.

**)

This amount is mainly comprised of tax provisions reversal due to statute of limitation of prior years' tax assessments amounting to $1,270.

The Company applies ASC 740, "Income Taxes" with regards to tax uncertainties. During the years ended December 31, 2011, 2012 and 2013, the Company recorded $ 727, $ (240) and $(2,811) of tax expenses (income), respectively, as a result of this application.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

Gross unrecognized tax positions at January 1, 2012	$	3,528

Increase in tax positions taken in prior years		270

Decrease in tax positions taken in prior years		(489)

Gross unrecognized tax benefits at December 31, 2012		3,309

Increase in tax positions taken in prior years		-

Decrease in tax positions taken in prior years		(2,811)

Gross unrecognized tax benefits at December 31, 2013	$	498

The Company recognizes interest and penalties related to unrecognized tax benefits in taxes on income. During the years ended December 31, 2012 and 2013, the Company recorded $ (21) and $ 40, respectively, for interest and penalties expenses (income) related to uncertain tax positions. The liability for unrecognized tax benefits included accrued interest and penalties of $ 55 and $ 58 at December 31, 2012 and 2013, respectively.

As of December 31, 2013, the entire amount of unrecognized tax benefit could affect the Company's income tax provision and the effective tax rate.

EQUITY

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 13:-

EQUITY

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.

Issuance of ordinary shares:

On December 23, 2010, the Company issued 3,287,616 ordinary shares at a price of $ 6.5 per share and in a total amount of $ 20,290 net of issuance expenses. The shares were issued to institutional investors in a private placement. In addition, certain of the purchasers received warrants to purchase up to an aggregate of 1,134,231 ordinary shares at an exercise price of $ 8.26 per share. The warrants are exercisable as of six months from the date of issuance, have a term of three years, and the exercise price is subject to future adjustment for various events, such as stock splits or dividend distributions. Following the Company's dividend distribution and in respect to warrants issuance agreement, exercise price was adjusted to $ 7.75 per share as of December 31, 2013.

Stock Option Plans:

Under the Company's 2007 Stock Option Plan, as amended ("the Plan"), options may be granted to employees, officers, directors and consultants of the Company and its subsidiaries. Pursuant to the 2007 Stock Option Plan, the Company reserved for issuance 1,500,000 ordinary shares. In 2012, the Company increased the amount of ordinary shares reserved for issuance by additional 1,000,000 ordinary shares in connection with the 2007 Stock Option Plan (mentioned above). As of December 31, 2013, an aggregate of 1,153,063 ordinary shares of the Company are available for future grants under the Plan. Each option granted under the Plan is exercisable for a period of ten years from the date of the grant of the option. The 2007 Plan will expire on August 1, 2017.

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 Plans.

A summary of employee option activity under the Plans as of December 31, 2013 and changes during the year ended December 31, 2013 are as follows:

	Number of options		Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at January 1, 2013		1,157,385	$	2.74		5.87	$	2,298
Granted		85,000	$	6.00
Exercised		(528,627)	$	2.73
Forfeited		(10,648)	$	1.51

Outstanding at December 31, 2013		703,110	$	3.16		6.68	$	2,822

Exercisable at December 31, 2013		461,610	$	2.36		5.78	$	2,219

Vested and expected to vest at December 31, 2013		703,110	$	3.16		6.68	$	2,822

The weighted-average grant-date fair value of options granted during the years ended December 31, 2011, 2012 and 2013 was $ 1.88, $4 and $ 6, respectively. 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, 2013. 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, 2011, 2012 and 2013 was $ 2,197, $ 572 and $ 1,741, respectively. As of December 31, 2013, there was $ 423 of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plans. This cost is expected to be recognized over a period of approximately three years.

The following table represents the employee option activity whose vesting is contingent upon meeting various departmental and Company's wide performance goals (including revenue growth and net gain index), as of December 31, 2013. These options have been included in the above table on employee option activity:

	Number of options		Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at January 1, 2013		139,250	$	1.44		5.55	$	454

Outstanding at December 31, 2013		-	$	-		-	$	-

Exercisable at December 31, 2013		-	$	-		-	$	-

Vested and expected to vest at December 31, 2013		-	$	-		-	$	-

During 2007 and 2008, the Company granted certain executives and other key employees, options to purchase 825,000 ordinary shares and 100,000 ordinary shares, respectively, with vesting contingent upon meeting various departmental and Company-wide performance goals, including revenue growth and net gain index. The options have an exercise price equal to the fair market value of the Company's ordinary shares on the date of grant, contingently vest over a period of four years, and are for a term of ten years. The fair value of those options was estimated on the date of grant using the same option valuation model used for the other options granted. If such goals are not met, no compensation cost is recognized and any recognized compensation cost is reversed. The inputs for expected volatility, expected dividends, expected term and risk-free rate used in estimating those options' fair value are the same as those noted in the table related to options issued under the Plans.

The options outstanding as of December 31, 2013, have been separated into ranges of exercise price categories, as follows:

Exercise price	Options outstanding		Weighted average remaining contractual life (years)		Weighted average exercise price		Options exercisable		Weighted average exercise price of exercisable options
In $
0-1		18,000		5.24	$	0.17		18,000	$	-
1.01-2		131,113		4.63	$	1.40		131,113	$	1.20
2.01-3		179,667		5.72	$	2.29		179,667	$	2.30
3.01-4		286,800		7.49	$	3.89		286,800	$	3.89
4.01-5		1,000		0.45	$	4.06		1,000	$	4.44
5.01-6		86,530		9.44	$	5.95		1,530	$	5.95

		703,110		6.68	$	3.16		461,610	$	2.36

Accumulated other comprehensive income:

	December 31,
	2011		2012			2013

Accumulated realized and unrealized gain on available-for-sale securities, net	$	145	$	173	$	138
Accumulated foreign currency translation adjustments		(152)		(776)		(327)
Unrealized gain (loss) on derivative instruments, net		(12)		17		17

Total other comprehensive income	$	(19)	$	(586)	$	(172)

On September 4, 2012, the Company's Board of Directors adopted a dividend distribution policy, subject to any applicable law. According to this policy, each year the Company will distribute a dividend of up to 50% of its annual distributable profits. It is possible that the Board of Directors will decide, subject to the conditions stated above, to declare additional dividend distributions. 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 not to distribute a dividend, all at its discretion.

In respect to the policy mentioned above, on September 10, 2012 and on February 14, 2013 , the Company declared a dividend distribution of $ 0.10 per share ($ 3,661 in the aggregate) and $ 0.12 per share ($ 4,397 in the aggregate) which were paid on October 17, 2012 and on March 14, 2013, respectively. on August 12, 2013 the Company declared a dividend distribution of $ 0.09 per share ($ 3,390 in the aggregate) which was paid on September 3, 2013. On February 18, 2014, the Company declared a dividend distribution of $ 0.12 per share (see also note 17).

SELECTED STATEMENTS OF INCOME DATA

12 Months Ended

Dec. 31, 2013

Selected Statement Of Income Data [Abstract]

Selected Statement Of Income Data [Text Block]

NOTE 14:-

SELECTED STATEMENTS OF INCOME DATA

Research and development costs, net:

	Year ended December 31,
	2011		2012		2013

Total costs	$	7,269	$	7,916	$	8,419
Less - capitalized software costs		(5,222)		(4,969)		(4,713)

Research and development, net	$	2,047	$	2,947	$	3,706

Financial income (expenses), net:

Interest income net of bank charges	$	397	$	20	$	(170)
Interest expenses related to liabilities in connection with acquisitions		(112)		(48)		(407)
Interest income from debt instruments		67		49		46
Loss arising from foreign currency translation and other		(131)		(11)		(153)

Financial income(expenses), net	$	221	$	10	$	(684)

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 15:-

COMMITMENTS AND CONTINGENCIES

Lease commitments:

Certain of the motor vehicles, facilities and equipment of the Company and its subsidiaries are rented under long-term operating lease agreements. Future minimum lease commitments under non-cancelable operating leases as of December 31, 2013, are as follows:

2014	$	1,741
2015		919
2016		815
2017 and thereafter		605

	$	4,080

Rent expenses for the years ended December 31, 2011, 2012 and 2013 were approximately $ 1,733, $ 1,701 and $ 1,911, respectively.

The Company leases motor vehicles under a cancelable lease agreement. The Company has an option to be released from this lease agreement, which may result in penalties in a maximum amount of $ 214.

The Company currently occupies approximately 57,530 square feet of space based on a lease agreement expiring in December, 2014. The Company has an option to terminate the lease agreement in Israel and India upon six months prior written notice.

The aggregated amount of lease commitment for the next 6 months in Israel and India mentioned above is approximately $ 259.

Guarantees and Collaterals:

The Company and certain of its subsidiaries have provided three of their clients with performance bank guarantees totaling $ 163, which are linked to the New Israeli Shekels, all of which will be terminated during 2014.

Several of the Company’s subsidiaries have pledged their accounts receivables to a financial institution, with respect to a US dollar loan received in 2013 (see also note 11).

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 August 2009, a software company and one of its owners filed an arbitration proceeding against the Company and one of its subsidiaries, claiming an alleged breach of a non-disclosure agreement between the parties. The plaintiffs are seeking damages in the amount of approximately NIS 52 million (approximately $ 15 million). The arbitrator determined that both we and our subsidiary breached the non-disclosure agreement. The closing summaries regarding damages have been submitted, but the arbitrator has not yet rendered his ruling..

In June 2011, the plaintiffs filed a motion to allow them to amend the claim by adding new causes of action and increasing the damages claimed in the lawsuit by approximately additional NIS 238 million (approximately $ 68,568) based on new arguments. Following discussions, the arbitrator rejected the motion and determined that if the plaintiffs wish to claim the additional damages (and the additional causes of action) they should do so in a separate legal proceeding. To date the plaintiffs did not file an additional lawsuit.

The Company recorded an accrual to cover damages to be awarded, based on the conclusions of the financial expert opinion that was filed by the Company in the arbitration proceedings. At this time, given the multiple uncertainties involved and in large part to the highly speculative nature of the damages sought by the plaintiff, which leaves a wide discretion to the arbitrator in quantifying and awarding the damages, the Company is unable to estimate the amount of the probable loss, if any, to be recognized or whether the accrual will be sufficient to cover the damages that will be awarded..

In addition to the above mentioned legal proceedings, the Company is also involved in various legal proceedings arising in the normal course of its business. Based upon the advice of counsel, the Company does not believe that the ultimate resolution of these matters will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows.

on December 2013 the Company signed an OEM agreement with SAP for the purchase of certain SAP products to be distributed only to the Retail Market, during a period of 2 years. the Company obligation under the agreement is for minimum amount of 220 thousands Euros.

NET EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 16:-

NET EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted net earnings per share:

	Year ended December 31,
	2011		2012		2013

Numerator for basic and diluted earnings per share - net income available to Magic shareholders	$	15,044	$	16,183	$	15,880

Weighted average ordinary shares outstanding:

Denominator for basic net earnings per share		36,267,739		36,502,264		36,835,163
Effect of dilutive securities		777,968		605,406		458,753

Denominator for diluted net earnings per share		37,045,707		37,107,670		37,293,916

Basic and diluted earnings per share	$	0.41	$	0.44	$	0.43

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 17:-

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS

The Company reports its results on the basis of two reportable business segments: software services (which include proprietary and none proprietary software technology) and IT professional services.

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 significant accounting policies. This data is presented in accordance with ASC 280, "Segment Reporting."

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 staffing services.

There are no significant transactions between the two segments.

The following is information about reported segment results of operation:

	Software services		IT professional services		Unallocated expense		Total
2011

Total revenues	$	58,137	$	55,191	$	-	$	113,328
Expenses		44,086		50,468		4,057		98,611

Segment operating income (loss)	$	14,051	$	4,723	$	(4,057)	$	14,717

Depreciation and amortization	$	3,837	$	853	$	350	$	5,040

2012

Total revenues	$	65,410	$	60,970	$	-	$	126,380
Expenses		50,497		55,456		4,019		109,972

Segment operating income (loss)	$	14,913	$	5,514	$	(4,019)	$	16,408

Depreciation and amortization	$	5,937	$	1,182	$	344	$	7,463

2013

Total revenues	$	67,453	$	77,505	$	-	$	144,958
Expenses		53,164		68,846		3,821		125,831

Segment operating income (loss)	$	14,289	$	8,659	$	(3,821)	$	19,127

Depreciation and amortization	$	5,917	$	2,210	$	253	$	8,380

The Company's business is divided into the following geographic areas: Israel, Europe, the United States, 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, 2011, 2012 and 2013:

	Year ended December 31,
	2011		2012		2013

Israel	$	7,982	$	11,561	$	24,006
Europe		24,351		29,139		31,386
United States		60,727		64,591		70,872
Japan		12,111		12,661		11,965
Other		8,157		8,428		6,729

	$	113,328	$	126,380	$	144,958

The Company's long-lived assets are located as follows:

	December 31,
	2012		2013

Israel	$	48,452	$	35,465
Europe		2,171		8,314
United States		15,459		23,287
Japan		6,164		5,180
Other		3,657		3,395

	$	75,903	$	75,640

The Company does not allocate its assets to its reportable segments; accordingly, asset information by reportable segments is not presented.

In 2011, 2012 and 2013, the Company had one customer, included in the IT professional services segment, which accounted for 25%, 19% and 13% of the group revenues, respectively.

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 18:- SUBSEQUENT EVENTS

On February 18, 2014, the Company declared a dividend distribution of $ 0.12 per share ($ 4,470 in the aggregate) which will be paid on March 14, 2014. The dividend distribution relates to the Company's earnings in the second half of 2013.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of estimates

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Financial statements in United States dollars

Consolidation, Policy [Policy Text Block]

Principles of consolidation

The following table provides a reconciliation of the redeemable non-controlling interests:

January 1, 2013		1,914
Net income attributable to redeemable non-controlling interests		546
Foreign currency translation adjustments		261

December 31, 2013		2,721

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

Cash and cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.

Cash and cash equivalent includes amounts held primarily in U.S. dollars, Euro, Japanese Yen and British Pound.

Short Term Deposits [Policy Text Block]

Short-term deposits and restricted deposits

Marketable Securities, Policy [Policy Text Block]

Marketable securities

Property, Plant and Equipment, Policy [Policy Text Block]

Property and equipment, net

		Years

Computers and peripheral equipment		3
Office furniture and equipment		7 - 15 (mainly 7)
Motor vehicles		7
Software		3 – 5 (mainly 5)
Leasehold improvements		Over the shorter of the lease term or useful economic life

Business Combinations Policy [Policy Text Block]

Business combinations

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

Variable interest entities

Research and Development Expense, Policy [Policy Text Block]

Research and development costs

The Company and its subsidiaries establish technological feasibility upon completion of a detailed program design or working model.

Research and development costs incurred in the process of developing product enhancements are generally charged to expenses as incurred.

Long Lived Assets [Policy Text Block]

Long-Lived Assets

The Company long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plants and equipment.

Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]

Impairment of long-lived assets and intangible assets subject to amortization

During the years ended December 31, 2011, 2012 and 2013, no impairment was identified.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

As required by ASC 820, "Fair Value Measurements and Disclosures", the Company applies assumptions that market place participants would consider in determining the fair value of each reporting unit.

The Company performed annual impairment tests during the fourth quarter of each of 2011, 2012 and 2013 and did not identify any impairment losses (see Note 9).

Revenue Recognition, Policy [Policy Text Block]

Revenue recognition

Maintenance and support revenue included in multiple element arrangements is deferred and recognized on a straight-line basis over the term of the maintenance and support agreement.

Deferred revenue includes unearned amounts received under maintenance, support and services contracts, and amounts received from customers but not yet recognized as revenues.

Severance Pay [Policy Text Block]

Severance pay

Severance expenses for the years ended December 31, 2011, 2012 and 2013 amounted to approximately $ 609, $ 829 and $ 1,132, respectively.

Advertising Costs, Policy [Policy Text Block]

Advertising expenses

Income Tax, Policy [Policy Text Block]

Income taxes

Earnings Per Share, Policy [Policy Text Block]

Basic and diluted net earnings per share

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-based compensation

The fair value for the Company's stock options granted to employees and directors was estimated using the following weighted-average assumptions:

	2011	2013

Dividend yield	0%	3%
Expected volatility	63.3% - 65.3%	57.7% - 60.2%
Risk-free interest rate	2.1%	2.6%
Expected forfeiture (employees)	8.4%	-
Expected forfeiture (executives)	5.2%	5.2%
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	2.7	-
Suboptimal exercise multiple (executives)	3.2	3.2

	Year ended December 31,
	2011		2012		2013

Cost of revenue	$	4	$	16	$	11
Research and development		54		114		67
Selling and marketing		92		82		85
General and administrative		483		303		162

Total stock-based compensation expense	$	633	$	515	$	325

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of credit risk

Fair Value Measurement, Policy [Policy Text Block]

Fair value measurements

Level 1 -

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets;

Level 2 -

Significant other observable inputs based on market data obtained from sources independent of the reporting entity;

Level 3 -

Unobservable inputs which are supported by little or no market activity;

Comprehensive Income, Policy [Policy Text Block]

Comprehensive income (loss)

Derivatives, Policy [Policy Text Block]

Derivative instruments

The derivative instruments used by the Company are designed to reduce the market risk associated with the exposure of its underlying transactions to fluctuations in currency exchange rates.

For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change.

At December 31, 2013, the Company did not have any cash flow hedges.

The following tables present fair value amounts and gains and losses of derivative instruments and related hedged items:

	Fair values of derivative instruments
	Assets
		December 31,
	Balance sheet item	2012		2013
Assets

Derivatives not designated as hedging	"Other accounts receivable and prepaid expenses"	$	140	$	-
Cash flow hedging:
Foreign exchange option contracts	" Other accounts receivable and prepaid expenses"		16		-

Total derivatives		$	156	$	-

	Statements	Gain (loss) recognized in the statements of income
	of	Year ended December 31,
	income item	2011		2012		2013

Cash flow hedging:
Foreign exchange forward and option contracts	"Operating expenses"	$	63	$	-	$	-

Derivatives not designated as hedging:
Foreign exchange forward contracts	"Financial expenses, net"		59		245		139

Total derivatives		$	122	$	245	$	139

Reclassification, Policy [Policy Text Block]

Reclassification

New Accounting Pronouncements, Policy [Policy Text Block]

Impact of recently issued accounting standards

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

The following table provides a reconciliation of the redeemable non-controlling interests:

January 1, 2013		1,914
Net income attributable to redeemable non-controlling interests		546
Foreign currency translation adjustments		261

December 31, 2013		2,721

Property, Plant and Equipment [Table Text Block]

		Years

Computers and peripheral equipment		3
Office furniture and equipment		7 - 15 (mainly 7)
Motor vehicles		7
Software		3 – 5 (mainly 5)
Leasehold improvements		Over the shorter of the lease term or useful economic life

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The fair value for the Company's stock options granted to employees and directors was estimated using the following weighted-average assumptions:

	2011	2013

Dividend yield	0%	3%
Expected volatility	63.3% - 65.3%	57.7% - 60.2%
Risk-free interest rate	2.1%	2.6%
Expected forfeiture (employees)	8.4%	-
Expected forfeiture (executives)	5.2%	5.2%
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	2.7	-
Suboptimal exercise multiple (executives)	3.2	3.2

Schedule Of Stock Based Compensation Expense [Table Text Block]

	Year ended December 31,
	2011		2012		2013

Cost of revenue	$	4	$	16	$	11
Research and development		54		114		67
Selling and marketing		92		82		85
General and administrative		483		303		162

Total stock-based compensation expense	$	633	$	515	$	325

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following tables present fair value amounts and gains and losses of derivative instruments and related hedged items:

	Fair values of derivative instruments
	Assets
		December 31,
	Balance sheet item	2012		2013
Assets

Derivatives not designated as hedging	"Other accounts receivable and prepaid expenses"	$	140	$	-
Cash flow hedging:
Foreign exchange option contracts	" Other accounts receivable and prepaid expenses"		16		-

Total derivatives		$	156	$	-

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

	Statements	Gain (loss) recognized in the statements of income
	of	Year ended December 31,
	income item	2011		2012		2013

Cash flow hedging:
Foreign exchange forward and option contracts	"Operating expenses"	$	63	$	-	$	-

Derivatives not designated as hedging:
Foreign exchange forward contracts	"Financial expenses, net"		59		245		139

Total derivatives		$	122	$	245	$	139

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Tables)

12 Months Ended

Dec. 31, 2013

Business Acquisition, Pro Forma Information [Table Text Block]

This pro forma financial information is not necessarily indicative of the combined results that would have been attained had the acquisition taken place at the beginning of 2012, nor is it necessarily indicative of future results.

	Year ended December 31,
	2012		2013
	Unaudited

Total revenues	$	158,132	$	170,661
Net income attributable to Magic Software Enterprises shareholders	$	17,206	$	17,098
Earnings per share
Basic	$	0.47	$	0.46
Diluted	$	0.46	$	0.46

Pilat Europe Limited Ltd and Pilat North America Inc [Member]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net assets	$	406
Intangible assets		331
Goodwill		496

Total assets acquired	$	1,233

Valinor Ltd [Member]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net assets	$	28
Intangible assets		464
Goodwill		1,126

Total assets acquired	$	1,618

Dario solutions IT Ltd [Member]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net Assets	$	371
Intangible assets		707
Goodwill		2,645

Total assets acquired	$	3,723

Comm It Group [Member]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

	As reported on December 31, 2012		Adjustment		Modified

Net assets	$	1,219	$	14	$	1,233
Non-controlling interest		(1,880)		130		(1,750)
Intangible assets		3,873		397		4,270
Goodwill		5,809		439		6,248
Deferred tax liability, net		-		(1,068)		(1,068)

Net assets acquired	$	9,021	$	(88)	$	8,933

Allstates Technical Services, LLC [Member]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:

Net Assets	$	3,063
Intangible assets		2,874
Goodwill		5,026

Total assets acquired	$	10,963

App Builder [Member]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed:

Net liabilities	$	(3,248)
Intangible assets		7,251
Goodwill		8,702

Net assets acquired	$	12,705

MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2013

Marketable Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

The Group invests in marketable debt and equity securities, which are classified as available-for-sale. The following is a summary of marketable securities:

	December 31,
	2012								2013
	Amortized cost		Unrealized losses		Unrealized gains		Market value		Amortized cost		Unrealized losses		Unrealized gains		Market value
Available-for-sale:

Governmental bonds	$	407	$	-	$	20	$	427	$	407	$	-	$	3	$	410
Commercial bonds		192		-		45		237		190		-		25		215
Equity funds		118		-		108		226		119		-		110		229

Total available-for-sale marketable securities	$	717	$	-	$	173	$	890	$	716	$	-	$	138	$	854

Schedule Of Available For Sale Debt Securities By Contractual Maturities [Table Text Block]

The amortized costs of available-for-sale debt securities at December 31, 2013, by contractual maturities, are shown below:

			Gross unrealized gains (losses)
	Amortized cost		Gains		Losses		Estimated fair value

Due in one year or less	$	597	$	28	$	-	$	625

	$	597	$	28	$	-	$	625

Schedule Of Changes In Other Comprehensive Income Of Available For Sale Securities [Table Text Block]

The following is the change in the other comprehensive income of available-for-sale securities during 2012:

	Other comprehensive income

Other comprehensive income from available-for-sale securities as of January 1, 2012	$	145

Unrealized loss from available-for-sale securities		28

Other comprehensive income from available-for-sale securities as of December 31, 2012	$	173

The following is the change in the other comprehensive income of available-for-sale securities during 2013:

	Other comprehensive income

Other comprehensive income from available-for-sale securities as of January 1, 2013	$	173

Unrealized gain from available-for-sale securities		(35)

Other comprehensive income from available-for-sale securities as of December 31, 2013	$	138

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The Company's financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates:

	December 31, 2013
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Government bonds	$	410	$	-	$	-	$	410
Corporate bonds		-		215		-		215
Equity fund		229		-		-		229

Total financial assets	$	639	$	215	$	-	$	854

Liabilities:
Contingent consideration	$	-	$	-	$	3,981	$	3,981

Total financials liabilities	$	-	$	-	$	3,981	$	3,981

	December 31, 2012
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Government bonds	$	427	$	-	$	-	$	427
Corporate bonds		-		237		-		237
Equity fund		226		-		-		226
Foreign currency derivative contracts		-		156		-		156

Total financial assets	$	653	$	393	$	-	$	1,046

Liabilities:
Contingent consideration	$	-	$	-	$	1,942	$	1,942

Total financials liabilities	$	-	$	-	$	1,942	$	1,942

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Fair value measurements using significant unobservable inputs (Level 3):

	December 31,
	2012			2013

Opening balance	$	1,046	$	1,942
Increase in contingent consideration		1,192		2,459
Decrease in contingent consideration		(315)		(750)
Amortization of interest		19		330

Closing balance	$	1,942	$	3,981

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables)

12 Months Ended

Dec. 31, 2013

Other Accounts Receivable and Prepaid Expenses Disclosure [Abstract]

Schedule Of Accounts Receivable and Prepaid Expenses [Table Text Block]

	December 31,
	2012		2013

Short-term lease deposits	$	615	$	773
Prepaid expenses		1,039		1,156
Government authorities		2,313		862
Deferred tax assets, net		2,522		1,949
Restricted deposits		163		289
Other		44		180

	$	6,696	$	5,209

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Schedule Of Property and Equipment [Table Text Block]

	December 31,
	2012		2013
Cost:

Leasehold improvements	$	470	$	546
Computers and peripheral equipment		9,826		10,106
Office furniture and equipment		1,875		2,639
Motor vehicles		244		98
Software		2,479		1,962

		14,894		15,351
Accumulated depreciation:

Leasehold improvements		242		288
Computers and peripheral equipment		9,420		9,657
Office furniture and equipment		1,435		1,947
Motor vehicles		124		68
Software		1,775		1,618

		12,996		13,578

Depreciated cost	$	1,898	$	1,773

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

Intangible assets:

	December 31,
	2012		2013
Original amounts:

Capitalized software costs	$	54,599	$	59,069
Customer relationships		19,802		23,843
Backlog and non-compete agreement		1,112		1,554
Acquired technology		2,138		3,112

		77,651		87,578
Accumulated amortization:

Capitalized software costs		41,191		45,075
Customer relationships		5,756		8,895
Backlog and non-compete agreement		472		630
Acquired technology		174		429

		47,593		55,029

Intangible assets, net	$	30,058	$	32,549

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The estimated future amortization expense of intangible assets as of December 31, 2013 is as follows:

2014		7,207
2015		6,390
2016		5,291
2017		3,717
2018		2,722
2019 and thereafter		7,222

	$	32,549

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

Changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2013 according to the Company's reporting units are as follows (see also 16):

	IT professional services		Software services		Total

As of January 1, 2012	$	11,908	$	26,989	$	38,897

Business combination		6,248		-		6,248
Adjustments due to finalized purchase price allocation		(120)		140		20
Foreign currency translation adjustments		-		(502)		(502)

As of December 31, 2012		18,036		26,627		44,663

Business combination		9,007		1,036		10,043
Classifications		430		-		430
Foreign currency translation adjustments		1,022		(845)		177

As of December 31, 2013		28,495		26,818		55,313

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Tables)

12 Months Ended

Dec. 31, 2013

Accounts Payable and Accrued Liabilities [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	December 31,
	2012		2013

Employees and payroll accruals	$	7,073	$	6,675
Accrued expenses		1,917		2,925
Deferred and contingent payments related to acquisitions		3,828		4,167
Government authorities		2,175		2,495
Other		2,195		675

	$	17,188	$	16,937

LONG TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

			December 31,
	Interest rate as of December 31, 2013		2012		2013
	%
Loans from banks in USD (1)		3.7%	$	-	$	2,904
Loan from banks and other in NIS		4.1%-5.9%		-		405
Other long term debt				24		20

Less – Current maturities (included under “short-term debt”)				(12)		(1,055)


			$	12	$	2,274

(1)

(2)

In November 2013, the Company entered into a three-year $3,000 credit facility. As of December 31, 2013, the company did not utilized the credit facility.

TAXES ON INCOME (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Income before taxes on income:

	Year ended December 31,
	2011		2012			2013

Domestic	$	7,197	$	10,462	$	16,165
Foreign		7,866		6,092		2,266

	$	15,063	$	16,554	$	18,431

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Taxes on income (tax benefit) consist of the following:

	Year ended December 31,
	2011		2012			2013
Current:

Domestic	$	447	$	(1,291)	$	(1,277)
Foreign		1,000		302		781

		1,447		(989)		(496)
Deferred taxes:

Domestic		(1,800)		414		2,673
Foreign		150		669		(602)

		(1,650)		1,083		2,071

Taxes on income (tax benefit)	$	(203)	$	94	$	1,575

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Significant components of the Company and its subsidiaries deferred tax assets are as follows:

	December 31,
	2012			2013

Net operating loss carryforwards	$	5,938	$	5,293
Allowances, reserves and intangible assets		809		1,207

Deferred tax assets before valuation allowance		6,747		6,500
Less - valuation allowance		(888)		(1,154)

Deferred tax assets		5,859		5,346
Capitalized software costs		(1,772)		(1,723)

Deferred tax assets, net	$	4,087	$	3,623

Schedule Of Deferred Tax Assets [Table Text Block]

Both current deferred tax liabilities and long term deferred tax liabilities are in respect of acquired intangible assets.

	December 31,
	2012			2011

Current tax assets	$	2,522	$	1,949
Non-current tax assets		1,565		1,674

Deferred tax assets	$	4,087	$	3,623

Schedule Of Deferred Tax Liabilities [Table Text Block]

Significant components of the Company and its subsidiaries deferred tax liability are as follows:

	December 31,
	2012			2013

Current liabilities	$	3,422	$	2,567
Non-current liabilities		750		2,204

Net deferred tax liabilities	$	4,172	$	4,771

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Reconciling items between the 2011, 2012 and 2013 statutory tax rate (24%, 25% and 25%, respectively) of the Company and the effective tax rate is presented in the following table:

	Year ended December 31,
	2011			2012				2013

Income before taxes, as reported in the consolidated statements of income	$	15,063		$	16,554		$	18,431

Statutory tax rate		24	%		25	%		25	%

Theoretical tax expenses on the above amount at the Israeli statutory tax rate	$	3,615		$	4,139		$	4,609
Tax adjustment in respect of different tax rates		866			444			484
Deferred taxes on losses for which full valuation allowance was provided in the past		(37)			651			(304)
Changes in valuation allowance		(4,429)			(2,003)			-
Tax benefits in respect of prior years, net		(73)		*)	(1,126)			203
Nondeductible expenses		40			20			95
Uncertain tax position and other differences		(185)		**)	(2,031)			(3,512)

Income tax (tax benefit)	$	(203)		$	94		$	1,575

In 2012, the Company reversed its write-off of tax prepayment advances from prior years since the Company believes the utilization of the prepayments is more-likely-than not in the near future.

**)

This amount is mainly comprised of tax provisions reversal due to statute of limitation of prior years' tax assessments amounting to $1,270.

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

Gross unrecognized tax positions at January 1, 2012	$	3,528

Increase in tax positions taken in prior years		270

Decrease in tax positions taken in prior years		(489)

Gross unrecognized tax benefits at December 31, 2012		3,309

Increase in tax positions taken in prior years		-

Decrease in tax positions taken in prior years		(2,811)

Gross unrecognized tax benefits at December 31, 2013	$	498

EQUITY (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Schedule Of Share Based Compensation, Employee Stock Option Plan, Activity [Table Text Block]

A summary of employee option activity under the Plans as of December 31, 2013 and changes during the year ended December 31, 2013 are as follows:

	Number of options		Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at January 1, 2013		1,157,385	$	2.74		5.87	$	2,298
Granted		85,000	$	6.00
Exercised		(528,627)	$	2.73
Forfeited		(10,648)	$	1.51

Outstanding at December 31, 2013		703,110	$	3.16		6.68	$	2,822

Exercisable at December 31, 2013		461,610	$	2.36		5.78	$	2,219

Vested and expected to vest at December 31, 2013		703,110	$	3.16		6.68	$	2,822

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Number of options		Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at January 1, 2013		139,250	$	1.44		5.55	$	454

Outstanding at December 31, 2013		-	$	-		-	$	-

Exercisable at December 31, 2013		-	$	-		-	$	-

Vested and expected to vest at December 31, 2013		-	$	-		-	$	-

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The options outstanding as of December 31, 2013, have been separated into ranges of exercise price categories, as follows:

Exercise price	Options outstanding		Weighted average remaining contractual life (years)		Weighted average exercise price		Options exercisable		Weighted average exercise price of exercisable options
In $
0-1		18,000		5.24	$	0.17		18,000	$	-
1.01-2		131,113		4.63	$	1.40		131,113	$	1.20
2.01-3		179,667		5.72	$	2.29		179,667	$	2.30
3.01-4		286,800		7.49	$	3.89		286,800	$	3.89
4.01-5		1,000		0.45	$	4.06		1,000	$	4.44
5.01-6		86,530		9.44	$	5.95		1,530	$	5.95

		703,110		6.68	$	3.16		461,610	$	2.36

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated other comprehensive income:

	December 31,
	2011		2012			2013

Accumulated realized and unrealized gain on available-for-sale securities, net	$	145	$	173	$	138
Accumulated foreign currency translation adjustments		(152)		(776)		(327)
Unrealized gain (loss) on derivative instruments, net		(12)		17		17

Total other comprehensive income	$	(19)	$	(586)	$	(172)

SELECTED STATEMENTS OF INCOME DATA (Tables)

12 Months Ended

Dec. 31, 2013

Selected Statement Of Income Data [Abstract]

Schedule Of Research and Development Expense [Table Text Block]

Research and development costs, net:

	Year ended December 31,
	2011		2012		2013

Total costs	$	7,269	$	7,916	$	8,419
Less - capitalized software costs		(5,222)		(4,969)		(4,713)

Research and development, net	$	2,047	$	2,947	$	3,706

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

Financial income (expenses), net:

Interest income net of bank charges	$	397	$	20	$	(170)
Interest expenses related to liabilities in connection with acquisitions		(112)		(48)		(407)
Interest income from debt instruments		67		49		46
Loss arising from foreign currency translation and other		(131)		(11)		(153)

Financial income(expenses), net	$	221	$	10	$	(684)

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Future minimum lease commitments under non-cancelable operating leases as of December 31, 2013, are as follows:

2014	$	1,741
2015		919
2016		815
2017 and thereafter		605

	$	4,080

NET EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted net earnings per share:

	Year ended December 31,
	2011		2012		2013

Numerator for basic and diluted earnings per share - net income available to Magic shareholders	$	15,044	$	16,183	$	15,880

Weighted average ordinary shares outstanding:

Denominator for basic net earnings per share		36,267,739		36,502,264		36,835,163
Effect of dilutive securities		777,968		605,406		458,753

Denominator for diluted net earnings per share		37,045,707		37,107,670		37,293,916

Basic and diluted earnings per share	$	0.41	$	0.44	$	0.43

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following is information about reported segment results of operation:

	Software services		IT professional services		Unallocated expense		Total
2011

Total revenues	$	58,137	$	55,191	$	-	$	113,328
Expenses		44,086		50,468		4,057		98,611

Segment operating income (loss)	$	14,051	$	4,723	$	(4,057)	$	14,717

Depreciation and amortization	$	3,837	$	853	$	350	$	5,040

2012

Total revenues	$	65,410	$	60,970	$	-	$	126,380
Expenses		50,497		55,456		4,019		109,972

Segment operating income (loss)	$	14,913	$	5,514	$	(4,019)	$	16,408

Depreciation and amortization	$	5,937	$	1,182	$	344	$	7,463

2013

Total revenues	$	67,453	$	77,505	$	-	$	144,958
Expenses		53,164		68,846		3,821		125,831

Segment operating income (loss)	$	14,289	$	8,659	$	(3,821)	$	19,127

Depreciation and amortization	$	5,917	$	2,210	$	253	$	8,380

Schedule Of Revenues From Geographical Segments [Table Text Block]

The following table presents total revenues classified according to geographical destination for the years ended December 31, 2011, 2012 and 2013:

	Year ended December 31,
	2011		2012		2013

Israel	$	7,982	$	11,561	$	24,006
Europe		24,351		29,139		31,386
United States		60,727		64,591		70,872
Japan		12,111		12,661		11,965
Other		8,157		8,428		6,729

	$	113,328	$	126,380	$	144,958

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

The Company's long-lived assets are located as follows:

	December 31,
	2012		2013

Israel	$	48,452	$	35,465
Europe		2,171		8,314
United States		15,459		23,287
Japan		6,164		5,180
Other		3,657		3,395

	$	75,903	$	75,640

SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
January 1, 2013	$ 1,914
Net income attributable to redeemable non-controlling interests	546	184	0
Foreign currency translation adjustments	261
December 31, 2013	$ 2,721	$ 1,914

SIGNIFICANT ACCOUNTING POLICIES (Details 1)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Dec. 31, 2013
Computers and Peripheral Equipment [Member]
Property, Plant and Equipment, Useful Life	3 years
Motor vehicles [Member]
Property, Plant and Equipment, Useful Life	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Estimated Useful Lives	Over the shorter of the lease term or useful economic life
Maximum [Member] \| Office Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life	15 years
Maximum [Member] \| Computer Software, Intangible Asset [Member]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] \| Office Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life	7 years
Minimum [Member] \| Computer Software, Intangible Asset [Member]
Property, Plant and Equipment, Useful Life	3 years

SIGNIFICANT ACCOUNTING POLICIES (Details 2)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details 2)	Dec. 31, 2013	Dec. 31, 2011
Dividend yield	3.00%	0.00%
Expected volatility, Minimum	57.70%	63.30%
Expected volatility, Maximum	60.20%	65.30%
Risk-free interest rate	2.60%	2.10%
Expected forfeiture (employees)	0.00%	8.40%
Expected forfeiture (executives)	5.20%	5.20%
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	0	2.7
Suboptimal exercise multiple (executives)	3.2	3.2

SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total stock-based compensation expense	$ 325	$ 515	$ 633
Cost Of Revenue [Member]
Total stock-based compensation expense	11	16	4
Research and Development Expense [Member]
Total stock-based compensation expense	67	114	54
Selling and Marketing Expense [Member]
Total stock-based compensation expense	85	82	92
General and Administrative Expense [Member]
Total stock-based compensation expense	$ 162	$ 303	$ 483

SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Liabilities:
Total derivatives	$ 0	$ 156
Other Accounts Receivable and Prepaid Expenses [Member]
ASSETS
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	0	140
Liabilities:
Foreign Currency Derivatives Notional Amount	$ 0	$ 16

SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivatives not designated as hedging:
Total derivatives	$ 139	$ 245	$ 122
Operating Expenses [Member]
Cash flow hedging:
Foreign exchange forward and option contracts	0	0	63
Financial Expenses [Member]
Derivatives not designated as hedging:
Foreign exchange forward contracts	$ 139	$ 245	$ 59

SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Advertising Expense	$ 306	$ 556	$ 313
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	536,877	669,887	550,430
Unrecognized Tax Benefits Income (Expences)	1,285	420	136
Dividend Distribution Maximum Percentage	50.00%
Allocated Share-based Compensation Expense	325	515	633
Severance Costs	1,132	829	609
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	3.00%
Purchase Of NIS With US Dollars [Member]
Foreign Currency Derivatives Notional Amount	0	519
Purchase Of US Dollars With Euros [Member]
Foreign Currency Derivatives Notional Amount	0	0
Purchase Of US Dollars With Japanese Yen [Member]
Foreign Currency Derivatives Notional Amount	$ 0	$ 1,276
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	3 years 6 months
Capitalized Computer Software Amortization Term	4 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	15 years
Capitalized Computer Software Amortization Term	5 years

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details) (USD $) In Thousands, unless otherwise specified	May 31, 2013	Dec. 27, 2011 App Builder [Member]
Net liabilities		$ (3,248)
Intangible assets	4,270	7,251
Goodwill	6,248	8,702
Net assets acquired	$ 8,933	$ 12,705

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details 1) (USD $) In Thousands, unless otherwise specified	May 31, 2013	Dec. 31, 2012 As reported [Member]	May 31, 2013 Adjustment [Member]
Net assets	$ 1,233	$ 1,219	$ 14
Non-controlling interest	(1,750)	(1,880)	130
Intangible assets	4,270	3,873	397
Goodwill	6,248	5,809	439
Deferred tax liability, net	(1,068)	0	(1,068)
Total assets acquired	$ 8,933	$ 9,021	$ (88)

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details 2) (USD $) In Thousands, unless otherwise specified	May 31, 2013	Feb. 26, 2013 Pilat Europe Limited Ltd and Pilat North America Inc [Member]
Net assets	$ 1,233	$ 406
Intangible assets	4,270	331
Goodwill	6,248	496
Total assets acquired	$ 8,933	$ 1,233

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details 3) (USD $) In Thousands, unless otherwise specified	May 31, 2013	May 16, 2013 Valinor Ltd [Member]
Net assets	$ 1,233	$ 28
Intangible assets	4,270	464
Goodwill	6,248	1,126
Total assets acquired	$ 8,933	$ 1,618

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details 4) (USD $) In Thousands, unless otherwise specified	May 31, 2013	May 30, 2013 Dario solutions IT Ltd [Member]
Net Assets	$ 1,233	$ 371
Intangible assets	4,270	707
Goodwill	6,248	2,645
Total assets acquired	$ 8,933	$ 3,723

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details 5) (USD $) In Thousands, unless otherwise specified	May 31, 2013	Nov. 11, 2013 Allstates Technical Services [Member]
Net Assets	$ 1,233	$ 3,063
Intangible assets	4,270	2,874
Goodwill	6,248	5,026
Total assets acquired	$ 8,933	$ 10,963

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details 6) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Total revenues	$ 170,661	$ 158,132
Net income attributable to Magic Software Enterprises shareholders	$ 17,098	$ 17,206
Earnings per share
Basic (in dollars per share)	$ 0.46	$ 0.47
Diluted (in dollars per share)	$ 0.46	$ 0.46

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended					1 Months Ended					1 Months Ended						1 Months Ended						1 Months Ended		1 Months Ended		1 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 App Builder [Member]	Dec. 27, 2011 App Builder [Member]	Jul. 31, 2012 Comm It Group [Member]	Dec. 31, 2013 Comm It Group [Member]	Jul. 31, 2013 Comm It Group [Member]	Dec. 31, 2012 Comm It Group [Member]	Feb. 26, 2013 Pilat Europe Limited Ltd and Pilat North America Inc [Member]	May 31, 2013 Valinor Ltd [Member]	Dec. 31, 2013 Valinor Ltd [Member]	Nov. 30, 2013 Valinor Ltd [Member]	May 16, 2013 Valinor Ltd [Member]	May 25, 2014 Valinor Ltd [Member] Subsequent Event [Member]	Dec. 31, 2013 Valinor Ltd [Member] Subsequent Event [Member]	Jun. 30, 2011 Dario solutions IT Ltd [Member]	May 30, 2013 Dario solutions IT Ltd [Member]	Feb. 28, 2014 Dario solutions IT Ltd [Member] Subsequent Event [Member]	Dec. 31, 2013 Dario solutions IT Ltd [Member] Subsequent Event [Member]	May 30, 2013 Dario solutions IT Ltd [Member] Subsequent Event [Member]	Nov. 11, 2013 Allstates Technical Services, LLC [Member]	Dec. 31, 2011 Customer Relationships [Member] App Builder [Member]	Dec. 27, 2011 Customer Relationships [Member] App Builder [Member]	Dec. 31, 2011 Backlog [Member] App Builder [Member]	Dec. 27, 2011 Backlog [Member] App Builder [Member]	Dec. 31, 2011 Technology-Based Intangible Assets [Member] App Builder [Member]	Dec. 27, 2011 Technology-Based Intangible Assets [Member] App Builder [Member]
Equity Method Investment, Ownership Percentage								20.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage						80.00%
Business Acquisition Purchase Price Allocation Customer Relationships																								$ 4,430
Amortization Of Acquired Intangible Assets Term																							15 years		15 years		3 years 6 months
Business Acquisition Purchase Price Allocation Developed Technology																												2,138
Business Acquisition Purchase Price Allocation Backlog																										683
Business Acquisition Contingent Consideration Deferred Payment						2,751
Business Acquisitions Cost Of Acquired Entity Purchase Price										1,233
Business Acquisitions Cost Of Acquired Entity Cash Paid				140	12,565	4,990
Business Acquisitions Contingent Consideration At Fair Value						3,943
Business Combination, Consideration Transferred, Total			900			8,933					1,618						3,723
Business Combination Consideration Paid Transferred1												230		339				1,100				10,963
Business Combination Consideration Contingent On Operational Target													339	600	340	340			1,000	906	1,717
Business Acquisitions Contingent Consideration Potential Cash Payment						1,192
Business Acquisition Purchases Price Allocation Liabilities Assumed							1,522		4,031
Net Income (Loss) Attributable To Redeemable Noncontrolling Interest	$ 546	$ 184	$ 0			$ 1,750

MARKETABLE SECURITIES (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Amortized Cost	$ 716	$ 717
Unrealized losses	0	0
Unrealized gains	138	173
Market value	854	890
Equity Funds [Member]
Amortized Cost	119	118
Unrealized losses	0	0
Unrealized gains	110	108
Market value	229	226
Government Bonds [Member]
Amortized Cost	407	407
Unrealized losses	0	0
Unrealized gains	3	20
Market value	410	427
Commercial Bonds [Member]
Amortized Cost	190	192
Unrealized losses	0	0
Unrealized gains	25	45
Market value	$ 215	$ 237

MARKETABLE SECURITIES (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Due in one year or less - Amortized cost	$ 597
Gross unrealized gains (losses), Amortized cost	597
Due in one year or less - Gross unrealized Gains	28
Gross unrealized gains	28
Due in one year or less - Gross unrealized Losses	0
Gross unrealized Losses	0
Due in one year or less - Estimated fair value	625
Available-for-sale Securities, Debt Securities	$ 625

MARKETABLE SECURITIES (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Other comprehensive income from available-for-sale securities	$ 173	$ 145
Unrealized loss from available-for-sale securities	(35)	28
Other comprehensive income from available-for-sale securities	$ 138	$ 173

FAIR VALUE MEASUREMENTS (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Assets:
Government bonds	$ 410	$ 427
Corporate bonds	215	237
Equity fund	229	226
Foreign currency derivative contracts		156
Total financial assets	854	1,046
Liabilities:
Contingent consideration	3,981	1,942
Total financials liabilities	3,981	1,942
Fair Value, Inputs, Level 1 [Member]
Assets:
Government bonds	410	427
Corporate bonds	0	0
Equity fund	229	226
Foreign currency derivative contracts		0
Total financial assets	639	653
Liabilities:
Contingent consideration	0	0
Total financials liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Government bonds	0	0
Corporate bonds	215	237
Equity fund	0	0
Foreign currency derivative contracts		156
Total financial assets	215	393
Liabilities:
Contingent consideration	0	0
Total financials liabilities	0	0
Fair Value, Inputs, Level 3 [Member]
Assets:
Government bonds	0	0
Corporate bonds	0	0
Equity fund	0	0
Foreign currency derivative contracts		0
Total financial assets	0	0
Liabilities:
Contingent consideration	3,981	1,942
Total financials liabilities	$ 3,981	$ 1,942

FAIR VALUE MEASUREMENTS (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Opening balance	$ 1,942	$ 1,046
Increase in contingent consideration	2,459	1,192
Decrease in contingent consideration	(750)	(315)
Amortization of interest	330	19
Closing balance	$ 3,981	$ 1,942

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Short-term lease deposits	$ 773	$ 615
Prepaid expenses	1,156	1,039
Government authorities	862	2,313
Deferred tax assets, net	1,949	2,522
Restricted deposits	289	163
Other	180	44
Prepaid Expense and Other Assets, Current, Total	$ 5,209	$ 6,696

PROPERTY AND EQUIPMENT (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment, Gross	$ 15,351	$ 14,894
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	13,578	12,996
Depreciated cost	1,773	1,898
Buildings and Leasehold Improvements [Member]
Property, Plant and Equipment, Gross	546	470
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	288	242
Computers and Peripheral Equipment [Member]
Property, Plant and Equipment, Gross	10,106	9,826
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	9,657	9,420
Office Furniture and Equipment [Member]
Property, Plant and Equipment, Gross	2,639	1,875
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	1,947	1,435
Motor vehicles [Member]
Property, Plant and Equipment, Gross	98	244
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	68	124
Computer Software, Intangible Asset [Member]
Property, Plant and Equipment, Gross	1,962	2,479
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 1,618	$ 1,775

PROPERTY AND EQUIPMENT (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Depreciation	$ 656	$ 757	$ 630

INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets, Gross	$ 87,578	$ 77,651
Finite-Lived Intangible Assets, Accumulated Amortization	55,029	47,593
Intangible assets, net	32,549	30,058
Capitalized software costs [Member]
Finite-Lived Intangible Assets, Gross	59,069	54,599
Finite-Lived Intangible Assets, Accumulated Amortization	45,075	41,191
Customer relationships [Member]
Finite-Lived Intangible Assets, Gross	23,843	19,802
Finite-Lived Intangible Assets, Accumulated Amortization	8,895	5,756
Backlog and non-compete agreement [Member]
Finite-Lived Intangible Assets, Gross	1,554	1,112
Finite-Lived Intangible Assets, Accumulated Amortization	630	472
Acquired technology [Member]
Finite-Lived Intangible Assets, Gross	3,112	2,138
Finite-Lived Intangible Assets, Accumulated Amortization	$ 429	$ 174

INTANGIBLE ASSETS (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
2014	$ 7,207
2015	6,390
2016	5,291
2017	3,717
2018	2,722
2019 and thereafter	7,222
Finite-Lived Intangible Assets, Net	$ 32,549	$ 30,058

INTANGIBLE ASSETS (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amortization of Intangible Assets	$ 7,724	$ 6,687	$ 4,410

GOODWILL (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill, Beginning Balance	$ 44,663	$ 38,897
Business combination	10,043	6,248
Classifications	430	20
Foreign currency translation adjustments	177	(502)
Goodwill, Ending Balance	55,313	44,663
IT Professional Services [Member]
Goodwill, Beginning Balance	18,036	11,908
Business combination	9,007	6,248
Classifications	430	(120)
Foreign currency translation adjustments	1,022	0
Goodwill, Ending Balance	28,495	18,036
Software Services [Member]
Goodwill, Beginning Balance	26,627	26,989
Business combination	1,036	0
Classifications	0	140
Foreign currency translation adjustments	(845)	(502)
Goodwill, Ending Balance	$ 26,818	$ 26,627

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Employees and payroll accruals	$ 6,675	$ 7,073
Accrued expenses	2,925	1,917
Deferred and contingent payments related to acquisitions	4,167	3,828
Government authorities	2,495	2,175
Other	675	2,195
Accrued Expenses And Other Accounts Payable	$ 16,937	$ 17,176

LONG TERM DEBT (Details) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Debt Instrument [Line Items]

Other long term debt

$ 20

$ 24

Less - Current maturities (included under “short-term debt”)

(1,055)

(12)

Long-term Debt, Total

2,274

Loans from banks in USD, Interest rate

3.70%

^[1]

Loan from banks and other in NIS, Interest rate Maximum

5.90%

Loan from banks and other in NIS, Interest rate Minimum

4.10%

United States of America, Dollars

Debt Instrument [Line Items]

Loans from banks

2,904

^[1]

Israel, New Shekels

Debt Instrument [Line Items]

Loans from banks

$ 405

$ 0

[1]

LONG TERM DEBT (Detail Textuals) (USD $) In Thousands, unless otherwise specified	12 Months Ended	1 Months Ended
	Dec. 31, 2013	Nov. 30, 2013 Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment	$ 3,000	$ 3,000
Debt Instrument, Description of Variable Rate Basis	Libor+3.5%
Debt Instrument, Payment Terms	paid monthly in equal payment, for a period of 36 months
Debt Instrument, Basis Spread on Variable Rate	3.50%

TAXES ON INCOME (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Domestic	$ 16,165	$ 10,462	$ 7,197
Foreign	2,266	6,092	7,866
Income before taxes on income	$ 18,431	$ 16,554	$ 15,063

TAXES ON INCOME (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current:
Domestic	$ (1,277)	$ (1,291)	$ 447
Foreign	781	302	1,000
Current Income Tax Expense (Benefit), Total	(496)	(989)	1,447
Deferred taxes:
Domestic	2,673	414	(1,800)
Foreign	(602)	669	150
Deferred Income Tax Expense (Benefit)	2,071	1,083	(1,650)
Taxes on income (tax benefit)	$ 1,575	$ 94	$ (203)

TAXES ON INCOME (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net operating loss carryforwards	$ 5,293	$ 5,938
Allowances, reserves and intangible assets	1,207	809
Deferred tax assets before valuation allowance	6,500	6,747
Less - valuation allowance	(1,154)	(888)
Deferred tax assets	5,346	5,859
Capitalized software costs	(1,723)	(1,772)
Deferred tax assets, net	$ 3,623	$ 4,087	$ 3,623

TAXES ON INCOME (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current tax assets		$ 2,522	$ 1,949
Non-current tax assets		1,565	1,674
Deferred tax assets, net	$ 3,623	$ 4,087	$ 3,623

TAXES ON INCOME (Details 4) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current liabilities	$ 2,567	$ 3,422
Non-current liabilities	2,204	750
Net deferred tax liabilities	$ 4,771	$ 4,172

TAXES ON INCOME (Details 5) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Income before taxes, as reported in the consolidated statements of income

$ 18,431

$ 16,554

$ 15,063

Statutory tax rate

25.00%

24.00%

Theoretical tax expenses on the above amount at the Israeli statutory tax rate

4,609

4,139

3,615

Tax adjustment in respect of different tax rates

484

444

866

Deferred taxes on losses for which full valuation allowance was provided in the past

(304)

651

(37)

Changes in valuation allowance

(2,003)

(4,429)

Tax benefits in respect of prior years, net

203

(1,126)

(73)

^[1]

Nondeductible expenses

Uncertain tax position and other differences

(3,512)

(2,031)

(185)

^[2]

Income tax (tax benefit)

$ 1,575

$ 94

$ (203)

[1]	In 2012, the Company reversed its write-off of tax prepayment advances from prior years since the Company believes the utilization of the prepayments is more-likely-than not in the near future.
[2]	This amount is mainly comprised of tax provisions reversal due to statute of limitation of prior years' tax assessments amounting to $1,270.

TAXES ON INCOME (Details 6) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Gross unrecognized tax positions	$ 3,309	$ 3,528
Increase in tax positions taken in prior years	0	270
Decrease in tax positions taken in prior years	(2,811)	(489)
Gross unrecognized tax benefits	$ 498	$ 3,309

TAXES ON INCOME (Details Textual) (USD $) In Thousands, unless otherwise specified	1 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2014 Subsequent Event [Member]	Dec. 31, 2013 Europe [Member]	Dec. 31, 2013 United States [Member]	Dec. 31, 2013 Other Areas [Member]	Dec. 31, 2013 Other Areas [Member] Year Two Thousand Fourteen [Member]	Dec. 31, 2013 Zone A Areas [Member]
Effective Income Tax Rate Reconciliation, State and Local Income Taxes		25.00%	25.00%	24.00%	26.50%				16.00%
Changes in valuation allowance		$ 0	$ (2,003)	$ (4,429)		$ 5,252	$ 2,835
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense		40	21
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	58	58	55
Operating Loss Carryforwards	12,412	12,412
Tax Adjustments, Settlements, and Unusual Provisions		0
Operating Losses Carryforwards Expiration Date						The Company's subsidiaries in Europe had estimated total available tax loss carryforwards of $ 5,252 as of December 31, 2013, to offset against future taxable income.	The Company's subsidiaries in the U.S. had estimated total available tax loss carryforwards of $ 2,835 as of December 31, 2013, which can be carried forward and offset against taxable income for a period of up to 20 years, from the year the loss was incurred.
Effective Income Tax Rate Reconciliation Tax Withholding Percent	90.00%	20.00%
Effective Income Tax Rate Reconciliation, Deduction, Percent, Total								8.00%		5.00%
Income Tax Expense Benefit Continue Operations		(2,811)	(240)	727
Provisions Tax Reversal For Limitation Of Prior Tax		$ 1,270

EQUITY (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2008	Dec. 31, 2007
Outstanding- Number of options	1,157,385
Granted - Number of options	85,000		100,000	825,000
Exercised - Number of options	(528,627)
Forfeited - Number of options	(10,648)
Outstanding- Number of options	703,110	1,157,385
Exercisable - Number of options	461,610
Vested and expected to vest - Number of options	703,110
Outstanding - Weighted average exercise price	$ 2.74
Granted - Weighted average exercise price	$ 6.00
Exercised - Weighted average exercise price	$ 2.73
Forfeited - Weighted average exercise price	$ 1.51
Outstanding - Weighted average exercise price	$ 3.16	$ 2.74
Exercisable - Weighted average exercise price	$ 2.36
Vested and expected to vest - Weighted average exercise price	$ 3.16
Outstanding - Weighted average remaining contractual term (in years)	6 years 8 months 5 days	5 years 10 months 13 days
Exercisable - Weighted average remaining contractual term (in years)	5 years 9 months 11 days
Vested and expected to vest - Weighted average remaining contractual term (in years)	6 years 8 months 5 days
Outstanding - Aggregate intrinsic value	$ 2,298
Outstanding - Aggregate intrinsic value	2,822	2,298
Exercisable - Aggregate intrinsic value	2,219
Vested and expected to vest - Aggregate intrinsic value	$ 2,822

EQUITY (Details 1) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Outstanding- Number of options	1,157,385
Outstanding- Number of options	703,110	1,157,385
Exercisable - Number of options	461,610
Vested and expected to vest - Number of options	703,110
Outstanding - Weighted average exercise price	$ 2.74
Outstanding - Weighted average exercise price	$ 3.16	$ 2.74
Exercisable - Weighted average exercise price	$ 2.36
Vested and expected to vest - Weighted average exercise price	$ 3.16
Outstanding - Weighted average remaining contractual term (in years)	6 years 8 months 5 days	5 years 10 months 13 days
Exercisable - Weighted average remaining contractual term (in years)	5 years 9 months 11 days
Vested and expected to vest - Weighted average remaining contractual term (in years)	6 years 8 months 5 days
Outstanding - Aggregate intrinsic value	$ 2,298
Outstanding - Aggregate intrinsic value	2,822	2,298
Exercisable - Aggregate intrinsic value	2,219
Vested and expected to vest - Aggregate intrinsic value	2,822
Performance Shares [Member]
Outstanding- Number of options	139,250
Outstanding- Number of options	0	139,250
Exercisable - Number of options	0
Vested and expected to vest - Number of options	0
Outstanding - Weighted average exercise price	$ 1.44
Outstanding - Weighted average exercise price	$ 0	$ 1.44
Exercisable - Weighted average exercise price	$ 0
Vested and expected to vest - Weighted average exercise price	$ 0
Outstanding - Weighted average remaining contractual term (in years)	0 years	5 years 6 months 18 days
Exercisable - Weighted average remaining contractual term (in years)	0 years
Vested and expected to vest - Weighted average remaining contractual term (in years)	0 years
Outstanding - Aggregate intrinsic value	454
Outstanding - Aggregate intrinsic value	0	454
Exercisable - Aggregate intrinsic value	0
Vested and expected to vest - Aggregate intrinsic value	$ 0

EQUITY (Details 2) (USD $)	12 Months Ended
EQUITY (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Options Outstanding	703,110	1,157,385
Weighted average remaining contractual Life (years)	6 years 8 months 5 days	5 years 10 months 13 days
Weighted average exercise price	$ 3.16	$ 2.74
Options exercisable	461,610
Weighted averageexercise price of exercisable	$ 2.36
Exercise Price One [Member]
Options Outstanding	18,000
Weighted average remaining contractual Life (years)	5 years 2 months 26 days
Weighted average exercise price	$ 0.17
Options exercisable	18,000
Weighted averageexercise price of exercisable	$ 0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 1
Exercise Price Two [Member]
Options Outstanding	131,113
Weighted average remaining contractual Life (years)	4 years 7 months 17 days
Weighted average exercise price	$ 1.40
Options exercisable	131,113
Weighted averageexercise price of exercisable	$ 1.20
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 1.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 2
Exercise Price Three [Member]
Options Outstanding	179,667
Weighted average remaining contractual Life (years)	5 years 8 months 19 days
Weighted average exercise price	$ 2.29
Options exercisable	179,667
Weighted averageexercise price of exercisable	$ 2.30
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 2.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 3
Exercise Price Four [Member]
Options Outstanding	286,800
Weighted average remaining contractual Life (years)	7 years 5 months 26 days
Weighted average exercise price	$ 3.89
Options exercisable	286,800
Weighted averageexercise price of exercisable	$ 3.89
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 3.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 4
Exercise Price Five [Member]
Options Outstanding	1,000
Weighted average remaining contractual Life (years)	5 months 12 days
Weighted average exercise price	$ 4.06
Options exercisable	1,000
Weighted averageexercise price of exercisable	$ 4.44
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 4.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 5
Exercise Price Six [Member]
Options Outstanding	86,530
Weighted average remaining contractual Life (years)	9 years 5 months 8 days
Weighted average exercise price	$ 5.95
Options exercisable	1,530
Weighted averageexercise price of exercisable	$ 5.95
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 5.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 6

EQUITY (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accumulated realized and unrealized gain on available-for-sale securities, net	$ 138	$ 173	$ 145
Accumulated foreign currency translation adjustments	(327)	(776)	(152)
Unrealized gain (loss) on derivative instruments, net	17	17	(12)
Total other comprehensive income	$ (172)	$ (586)	$ (19)

EQUITY (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended											12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2008	Dec. 31, 2007	Aug. 12, 2013	Feb. 14, 2013	Sep. 10, 2012	Dec. 23, 2010	Feb. 18, 2014 Subsequent Event [Member]	Dec. 31, 2013 Payment One [Member]	Dec. 31, 2013 Payment Two [Member]	Dec. 31, 2013 Payment Three [Member]	Dec. 31, 2007 2007 Plan [Member]	Dec. 31, 2013 2007 Plan [Member] Minimum [Member]	Dec. 31, 2013 2007 Plan [Member] Maximum [Member]	Dec. 31, 2010 Common Stock [Member]
Issuance of Ordinary shares and warrants (net of issuance expenses $ 1,080) (in shares)																		3,287,616
Stock Issued During Period New Issues Price Per Share																		$ 6.5
Class of Warrant or Right, Number of Securities Called by Warrants or Rights										1,134,231
Class Of Warrant Exercise Price Of Warrants Or Rights										$ 8.26
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,153,063
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized															1,500,000
Granted - Number of options	85,000				100,000	825,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 6	$ 4	$ 1.88
Exercised - Aggregate intrinsic value	$ 1,741	$ 572	$ 2,197
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options	423
Dividends Payable, Amount Per Share							$ 0.09	$ 0.12	$ 0.10		$ 0.12
Issuance (expense on issuance) of Ordinary shares	0	0	(21)	20,290
Class Of Warrant Or Right Adjusted Exercise Price Of Warrants Or Rights	$ 7.75
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized															1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period																3 years	4 years
Dividends Payable							$ 3,390	$ 4,397	$ 3,661		$ 4,470
Dividends Payable, Date to be Paid												Oct. 17, 2012	Mar. 14, 2013	Sep. 03, 2013

SELECTED STATEMENTS OF INCOME DATA (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total costs	$ 8,419	$ 7,916	$ 7,269
Less - capitalized software costs	(4,713)	(4,969)	(5,222)
Research and development, net	$ 3,706	$ 2,947	$ 2,047

SELECTED STATEMENTS OF INCOME DATA (Details1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Interest income net of bank charges	$ (170)	$ 20	$ 397
Interest expenses related to liabilities in connection with acquisitions	0	(48)	(112)
Interest income from debt instruments	46	49	67
Loss arising from foreign currency translation and other	(153)	(11)	(131)
Financial income(expenses), net	$ (684)	$ 10	$ 221

COMMITMENTS AND CONTINGENCIES (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
2014	$ 1,741
2015	919
2016	815
2017 and thereafter	605
Operating Leases, Future Minimum Payments Due	$ 4,080

COMMITMENTS AND CONTINGENCIES (Details Textual)	1 Months Ended		12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Textual)	Jun. 30, 2011 USD ($)	Jun. 30, 2011 ILS	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2009 ILS	Dec. 31, 2013 EUR (€) acre	Dec. 31, 2013 New Israeli Shekel [Member] USD ($)
Operating Leases, Rent Expense			$ 1,911,000	$ 1,701,000	$ 1,733,000
Lease Agreement Maximum Penalties Amount			214,000
Guarantee Obligations Total									163,000
Loss Contingency, Damages Sought, Value						15,000,000	52,000,000
Loss Contingency Damages Sought Value Increase	68,568,000	238,000,000
Lease Commitment Description			amount of lease commitment for the next 6 months in Israel and India mentioned above is approximately $ 259
Area of Land								57,530
Purchase Agreement Term			2 years
Agreement Obligation Minimum Amount								€ 220,000

NET EARNINGS PER SHARE (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Numerator for basic and diluted earnings per share - net income available to Magic shareholders	$ 15,880	$ 16,183	$ 15,044
Weighted average ordinary shares outstanding:
Denominator for basic net earnings per share	36,835,163	36,502,264	36,267,739
Effect of dilutive securities	458,753	605,406	777,968
Denominator for diluted net earnings per share	37,293,916	37,107,670	37,045,707
Basic and diluted earnings per share (in dollars per share)	$ 0.43	$ 0.44	$ 0.41

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total revenues	$ 144,958	$ 126,380	$ 113,328
Expenses	125,831	109,972	98,611
Segment operating income (loss)	19,127	16,408	14,717
Depreciation and amortization	8,380	7,444	5,040
Software Services [Member]
Total revenues	67,453	65,410	58,137
Expenses	53,164	50,497	44,086
Segment operating income (loss)	14,289	14,913	14,051
Depreciation and amortization	5,917	5,937	3,837
IT Professional Services [Member]
Total revenues	77,505	60,970	55,191
Expenses	68,846	55,456	50,468
Segment operating income (loss)	8,659	5,514	4,723
Depreciation and amortization	2,210	1,182	853
Unallocated Expense [Member]
Total revenues	0	0	0
Expenses	3,821	4,019	4,057
Segment operating income (loss)	(3,821)	(4,019)	(4,057)
Depreciation and amortization	$ 253	$ 344	$ 350

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total revenues	$ 144,958	$ 126,380	$ 113,328
Israel [Member]
Total revenues	24,006	11,561	7,982
Europe [Member]
Total revenues	31,386	29,139	24,351
United States [Member]
Total revenues	70,872	64,591	60,727
Japan [Member]
Total revenues	11,965	12,661	12,111
Other [Member]
Total revenues	$ 6,729	$ 8,428	$ 8,157

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Long-Lived Assets	$ 75,640	$ 75,903
Israel [Member]
Long-Lived Assets	35,465	48,452
Europe [Member]
Long-Lived Assets	8,314	2,171
United States [Member]
Long-Lived Assets	23,287	15,459
Japan [Member]
Long-Lived Assets	5,180	6,164
Others [Member]
Long-Lived Assets	$ 3,395	$ 3,657

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details Textual)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Concentration Risk, Percentage	13.00%	19.00%	25.00%

SUBSEQUENT EVENTS (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	Aug. 12, 2013	Feb. 14, 2013	Sep. 10, 2012	Feb. 18, 2014 Subsequent Event [Member]
Dividends Payable, Amount Per Share	$ 0.09	$ 0.12	$ 0.10	$ 0.12
Dividends Payable	$ 3,390	$ 4,397	$ 3,661	$ 4,470