Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2014
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	44,174,217dei_EntityCommonStockSharesOutstanding
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014
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, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 72,515	$ 35,134
Available-for-sale marketable securities (Note 4)	11,915	854
Trade receivables (net of allowance for doubtful accounts of $ 3,313 and $ 2,380 at December 31, 2013 and 2014, respectively)	40,358us-gaap_AccountsReceivableNetCurrent	31,976us-gaap_AccountsReceivableNetCurrent
Other accounts receivable and prepaid expenses (Note 6)	3,973	5,209
Total current assets	128,761us-gaap_AssetsCurrent	73,173us-gaap_AssetsCurrent
LONG-TERM RECEIVABLES:
Severance pay fund	1,426mgic_SeverancePayFund	403mgic_SeverancePayFund
Long term deferred tax asset (Note 12)	1,583	1,674
Other long-term receivables	2,376us-gaap_OtherReceivables	2,118us-gaap_OtherReceivables
Total long-term receivables	5,385	4,195
PROPERTY AND EQUIPMENT, NET (Note 7)	2,005us-gaap_PropertyPlantAndEquipmentNet	1,773us-gaap_PropertyPlantAndEquipmentNet
INTANGIBLE ASSETS, NET (Note 8)	32,543	32,549
GOODWILL (Note 9)	55,490us-gaap_Goodwill	55,313us-gaap_Goodwill
Total assets	224,184us-gaap_Assets	167,003us-gaap_Assets
LIABILITIES AND EQUITY
Short term debt (Note 11)	2,853us-gaap_ShortTermBorrowings	1,055us-gaap_ShortTermBorrowings
Trade payables	3,861us-gaap_AccountsPayableTradeCurrent	4,149us-gaap_AccountsPayableTradeCurrent
Accrued expenses and other accounts payable (Note 10)	15,013	16,937
Deferred tax liability (Note 12)	760us-gaap_DeferredTaxLiabilitiesCurrent	2,567us-gaap_DeferredTaxLiabilitiesCurrent
Deferred revenues	3,431us-gaap_DeferredRevenueCurrent	3,294us-gaap_DeferredRevenueCurrent
Total current liabilities	25,918us-gaap_LiabilitiesCurrent	28,002us-gaap_LiabilitiesCurrent
ACCRUED SEVERANCE PAY	2,562	1,275
LONG TERM LIABILITIES:
Long term debt (Note 11)	490us-gaap_LongTermDebt	2,274us-gaap_LongTermDebt
Liabilities due to acquisition activities and other (Note 3)	474	1,396
Long term deferred tax liability (Note 12)	4,086	2,204
Total noncurrent liabilities	5,050us-gaap_LiabilitiesNoncurrent	5,874us-gaap_LiabilitiesNoncurrent
COMMITMENTS AND CONTINGENCIES (Note 15)
REDEEMABLE NON-CONTROLLING INTEREST	2,930	2,721
EQUITY (Note 13):
Ordinary shares of NIS 0.1 par value - Authorized: 50,000,000 shares at December 31, 2013 and 2014; Issued and Outstanding: 37,155,355 and 44,174,217 shares at December 31, 2013 and 2014, respectively	1,029us-gaap_CommonStockValue	826us-gaap_CommonStockValue
Additional paid-in capital	182,114	127,060
Accumulated other comprehensive loss	(5,347)	(172)
Accumulated (deficit) earnings	7,269	430
Total Magic Software Enterprises equity	185,065us-gaap_StockholdersEquity	128,144us-gaap_StockholdersEquity
Non-controlling interests	2,659us-gaap_MinorityInterest	987us-gaap_MinorityInterest
Total equity	187,724	129,131
Total liabilities, redeemable non-controlling interest and equity	$ 224,184	$ 167,003

CONSOLIDATED BALANCE SHEETS [Parenthetical] In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014 USD ($)	Dec. 31, 2014 ILS	Dec. 31, 2013 USD ($)	Dec. 31, 2013 ILS
Allowance for doubtful accounts trade receivables, net (in dollars)	$ 2,380		$ 3,313
Ordinary stock, par value (in dollars per share)		0.1		0.1
Ordinary stock, shares authorized	50,000,000us-gaap_CommonStockSharesAuthorized	50,000,000us-gaap_CommonStockSharesAuthorized	50,000,000us-gaap_CommonStockSharesAuthorized	50,000,000us-gaap_CommonStockSharesAuthorized
Ordinary stock, shares issued	44,174,217us-gaap_CommonStockSharesIssued	44,174,217us-gaap_CommonStockSharesIssued	37,155,355us-gaap_CommonStockSharesIssued	37,155,355us-gaap_CommonStockSharesIssued
Ordinary stock, shares outstanding	44,174,217us-gaap_CommonStockSharesOutstanding	44,174,217us-gaap_CommonStockSharesOutstanding	37,155,355us-gaap_CommonStockSharesOutstanding	37,155,355us-gaap_CommonStockSharesOutstanding

CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues (Note 17):
Software	$ 25,351us-gaap_SalesRevenueGoodsNet	$ 23,254us-gaap_SalesRevenueGoodsNet	$ 23,684us-gaap_SalesRevenueGoodsNet
Maintenance and technical support	22,780us-gaap_MaintenanceRevenue	22,685us-gaap_MaintenanceRevenue	22,384us-gaap_MaintenanceRevenue
Consulting services	116,173us-gaap_TechnologyServicesRevenue	99,019us-gaap_TechnologyServicesRevenue	80,312us-gaap_TechnologyServicesRevenue
Total revenues	164,304us-gaap_SalesRevenueNet	144,958us-gaap_SalesRevenueNet	126,380us-gaap_SalesRevenueNet
Cost of revenues:
Software	7,646us-gaap_CostOfGoodsSold	6,648us-gaap_CostOfGoodsSold	7,439us-gaap_CostOfGoodsSold
Maintenance and technical support	2,921us-gaap_CostOfServicesMaintenanceCosts	2,949us-gaap_CostOfServicesMaintenanceCosts	3,238us-gaap_CostOfServicesMaintenanceCosts
Consulting services	89,160us-gaap_TechnologyServicesCosts	76,296us-gaap_TechnologyServicesCosts	62,716us-gaap_TechnologyServicesCosts
Total cost of revenues	99,727us-gaap_CostOfGoodsAndServicesSold	85,893us-gaap_CostOfGoodsAndServicesSold	73,393us-gaap_CostOfGoodsAndServicesSold
Gross profit	64,577us-gaap_GrossProfit	59,065us-gaap_GrossProfit	52,987us-gaap_GrossProfit
Operating costs and expenses:
Research and development, net (Note 14a)	4,750us-gaap_ResearchAndDevelopmentExpense	3,706us-gaap_ResearchAndDevelopmentExpense	2,947us-gaap_ResearchAndDevelopmentExpense
Selling and marketing	24,580us-gaap_SellingAndMarketingExpense	23,066us-gaap_SellingAndMarketingExpense	22,990us-gaap_SellingAndMarketingExpense
General and administrative	14,521us-gaap_GeneralAndAdministrativeExpense	13,166us-gaap_GeneralAndAdministrativeExpense	10,642us-gaap_GeneralAndAdministrativeExpense
Total operating costs and expenses	43,851us-gaap_OperatingExpenses	39,938us-gaap_OperatingExpenses	36,579us-gaap_OperatingExpenses
Operating income	20,726us-gaap_OperatingIncomeLoss	19,127us-gaap_OperatingIncomeLoss	16,408us-gaap_OperatingIncomeLoss
Financial income (expense), net (Note 14b)	(1,786)us-gaap_NonoperatingGainsLosses	(684)us-gaap_NonoperatingGainsLosses	10us-gaap_NonoperatingGainsLosses
Other income (expense), net	(67)us-gaap_OtherNonoperatingIncomeExpense	(12)us-gaap_OtherNonoperatingIncomeExpense	136us-gaap_OtherNonoperatingIncomeExpense
Income before taxes on income	18,873	18,431	16,554
Taxes on income (Note 12)	2,307us-gaap_IncomeTaxExpenseBenefit	1,575us-gaap_IncomeTaxExpenseBenefit	94us-gaap_IncomeTaxExpenseBenefit
Net income	16,566	16,856	16,460
Net income attributable to redeemable non-controlling interests	425	546	184
Net income attributable to non-controlling interests	621	430	93
Net income attributable to Magic Software Enterprises Shareholders	$ 15,520us-gaap_NetIncomeLoss	$ 15,880us-gaap_NetIncomeLoss	$ 16,183us-gaap_NetIncomeLoss
Net earnings per share attributable to Magic Software Enterprises' shareholders (Note 16):
Basic and diluted earnings per share (in dollars per share)	$ 0.36us-gaap_EarningsPerShareBasicAndDiluted	$ 0.43us-gaap_EarningsPerShareBasicAndDiluted	$ 0.44us-gaap_EarningsPerShareBasicAndDiluted

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net income	$ 16,566us-gaap_ProfitLoss	$ 16,856us-gaap_ProfitLoss	$ 16,460us-gaap_ProfitLoss
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net	(5,469)	495	(621)
Unrealized gain from derivative instruments, net	0	0	29
Unrealized loss (gain) from available-for-sale securities	(259)	(35)	28
Total other comprehensive income (loss), net of tax	(5,728)	460	(564)
Total comprehensive income	10,838	17,316	15,896
Comprehensive income attributable to redeemable non-controlling interests	51	807	157
Comprehensive income attributable to non-controlling interests	442	476	96
Comprehensive income attributable to Magic Software Enterprises' shareholders	$ 10,345us-gaap_ComprehensiveIncomeNetOfTax	$ 16,033us-gaap_ComprehensiveIncomeNetOfTax	$ 15,643us-gaap_ComprehensiveIncomeNetOfTax

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, 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)us-gaap_DividendsCommonStock	0	0	0	(3,661)	0
Acquisition of non-controlling interests in Xsell (see Note 3)	(314)	0	(149)	0	0	(165)
Other comprehensive income	(564)	0	0	(567)	0	3
Net income	16,451	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)us-gaap_DividendsCommonStock	0	0	0	(7,723)	(64)
Other comprehensive income	460	0	0	414	0	46
Net income	16,310	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
Issuance of shares	54,726	201	54,525	0	0	0
Issuance of shares (in shares)		6,903,141
Exercise of stock options	204	2	202	0	0	0
Exercise of stock options (in shares)		115,721
Stock-based compensation expenses	1,557	0	327	0	0	1,230
Dividend	(8,681)us-gaap_DividendsCommonStock	0	0	0	(8,681)	0
Other comprehensive income	(5,354)	0	0	(5,175)	0	(179)
Net income	16,141	0	0	0	15,520	621
Balance at Dec. 31, 2014	$ 187,724	$ 1,029	$ 182,114	$ (5,347)	$ 7,269	$ 2,659
Balance (in shares) at Dec. 31, 2014		44,174,217

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income	$ 16,566us-gaap_ProfitLoss	$ 16,856us-gaap_ProfitLoss	$ 16,460us-gaap_ProfitLoss
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,660us-gaap_DepreciationAndAmortization	8,380us-gaap_DepreciationAndAmortization	7,444us-gaap_DepreciationAndAmortization
Interest expenses related to liabilities in connection with acquisitions	0us-gaap_InterestAndDebtExpense	0us-gaap_InterestAndDebtExpense	48us-gaap_InterestAndDebtExpense
Accrued severance pay, net	0us-gaap_SeveranceCosts1	0us-gaap_SeveranceCosts1	8us-gaap_SeveranceCosts1
Loss on sale of property and equipment	0	10	0
Stock-based compensation expenses	1,557us-gaap_ShareBasedCompensation	325us-gaap_ShareBasedCompensation	515us-gaap_ShareBasedCompensation
Amortization of marketable securities premium, accretion of discount	62	0	0
Gain on sale of subsidiary's operation	0	0	(136)
Decrease (increase) in trade receivables, net	(9,378)	473	11
Decrease (increase) in other long term and short term accounts receivable and prepaid expenses	(23)	(397)	145
Increase in trade payables	(342)	(700)	780
Increase (decrease) in accrued expenses and other accounts payable	(303)	(1,589)	(2,279)
Increase (decrease) in deferred revenues	191	(1,765)	(1,131)
Change in deferred income taxes, net	1,204	687	1,083
Net cash provided by operating activities	18,194	22,280	22,948
Cash flows from investing activities:
Capitalized software development costs	(4,267)us-gaap_PaymentsToDevelopSoftware	(4,713)us-gaap_PaymentsToDevelopSoftware	(4,969)us-gaap_PaymentsToDevelopSoftware
Purchase of property and equipment	(993)	(497)	(510)
Cash paid in conjunction with acquisitions, net of acquired cash	(9,363)	(16,557)	(7,627)
Proceeds from sale of subsidiary's operation	0	0	136
Proceeds from sale of property and equipment	0	60	0
Proceeds from maturity of marketable securities	596	0	343
Proceeds from short-term bank deposits	0us-gaap_ProceedsFromOtherDeposits	0us-gaap_ProceedsFromOtherDeposits	3,601us-gaap_ProceedsFromOtherDeposits
Change in loans to employees and other deposits ,net	(58)us-gaap_PaymentsForOtherDeposits	0us-gaap_PaymentsForOtherDeposits	(34)us-gaap_PaymentsForOtherDeposits
Investment in marketable securities	(11,976)	0	0
Investment in short-term bank deposit	0	0	(1,366)
Net cash used in investing activities	(26,061)	(21,707)	(10,426)
Cash flows from financing activities:
Proceeds from exercise of options by employees	204	1,462	309
Issuance of Ordinary shares, net	54,726	0	0
Dividend paid	(8,681)us-gaap_PaymentsOfDividends	(7,787)us-gaap_PaymentsOfDividends	(3,661)us-gaap_PaymentsOfDividends
Short-term credit, net	2,974	(47)	14
Purchase of non-controlling interest	0us-gaap_PaymentsToMinorityShareholders	(168)us-gaap_PaymentsToMinorityShareholders	(87)us-gaap_PaymentsToMinorityShareholders
Long term loan received	0	3,307	0
Repayment of long-term loans	(2,905)us-gaap_RepaymentsOfLongTermDebt	(95)us-gaap_RepaymentsOfLongTermDebt	0us-gaap_RepaymentsOfLongTermDebt
Net cash used in financing activities	46,318	(3,328)	(3,425)
Effect of exchange rate changes on cash and cash equivalents	(1,070)	145	(64)
Increase (decrease) in cash and cash equivalents	37,381	(2,610)	9,033
Cash and cash equivalents at the beginning of the year	35,134	37,744	28,711
Cash and cash equivalents at end of the year	72,515	35,134	37,744
Supplementary information on investing and financing activities not involving cash flows:
Deferred acquisition payment	250mgic_DeferredPayment	1,581mgic_DeferredPayment	3,103mgic_DeferredPayment
Contingent acquisition payment	0mgic_ContingentPayment	3,981mgic_ContingentPayment	1,192mgic_ContingentPayment
Supplemental disclosure of cash flow activities:
Income taxes	1,601us-gaap_IncomeTaxesPaid	1,519us-gaap_IncomeTaxesPaid	1,250us-gaap_IncomeTaxesPaid
Interest	$ 74us-gaap_InterestPaid	$ 34us-gaap_InterestPaid	$ 17us-gaap_InterestPaid

GENERAL

12 Months Ended

Dec. 31, 2014

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 17 for further details). The principal markets of the Group are Europe, United States, Japan and Israel (see Note 17).

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, 2014

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 certain of 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 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, 2014		2,721
Net income attributable to redeemable non-controlling interests		425
Non-controlling interest as part of acquisitions		158
Foreign currency translation adjustments		(374)

December 31, 2014		2,930

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 NIS, 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, 2012, 2013 and 2014, 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, 2012, 2013 and 2014, 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, 2014, the Company operates in four reporting units within its operating segments.

Goodwill reflects the excess of the consideration paid or transferred plus the fair value of contingent consideration and any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed according to the following principles:

An initial qualitative assessment of the likelihood of impairment may be performed. If this step does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed.

In step one of the impairment test, the company compares the fair value of the reporting units to the carrying value of net assets allocated to the reporting units. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. Otherwise, the company must perform the second step of the impairment test to measure the amount of the impairment.

In the second step, the reporting unit’s fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit’s goodwill is less than its carrying value, the difference is recorded as impairment

The Company performed an annual impairment tests as of December 31, of each of 2012, 2013 and 2014 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, 2012, 2013 and 2014, 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, 2012, 2013 and 2014 amounted to approximately $ 829, $ 1,371 and $ 1,673, respectively.

Advertising expenses

Advertising expenses are charged to selling and marketing expenses, as incurred. Advertising expenses for the years ended December 31, 2012, 2013 and 2014 amounted to $ 556, $ 306 and $ 466, 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 669,887, 536,877 and 35,010 for the years ended December 31, 2012, 2013 and 2014, 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.

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 assumptions:

	2013	2014

Dividend yield	0%	0%
Expected volatility	32% - 59%	32% - 59%
Risk-free interest rate	0.1% - 2.6%	0.1% - 2.6%
Expected forfeiture (employees)	-	-
Expected forfeiture (executives)	-	-
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	2	-
Suboptimal exercise multiple (executives)	2	2

During the years ended December 31, 2012, 2013 and 2014, the Company recognized stock-based compensation expense related to employee stock options in the amount of $ 515, $ 325 and $ 1,557, respectively, as follows:

	Year ended December 31,
	2012		2013		2014

Cost of revenue	$	16	$	11	$	30
Research and development		114		67		29
Selling and marketing		82		85		220
General and administrative		303		162		1,278

Total stock-based compensation expense	$	515	$	325	$	1,557

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 2013 to 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, 2012, 2013 and 2014 was $ 420, $ 1,285 and $ 735, 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 $ 0 and $ 1,736 as of December 31, 2013 and 2014, respectively.

At December 31, 2014, 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	2013			2014
Assets

Derivatives not designated as hedging	"Other accounts receivable and prepaid expenses"	$	-	$	9

Total derivatives		$	-	$	9

		Gain (loss)
		recognized in the
	Statements	statements of income
	of	Year ended December 31,
	income item	2012		2013		2014

Derivatives not designated as hedging:
Foreign exchange forward contracts	"Financial expenses, net"		245		139		24

Total derivatives		$	245	$	139	$	24

Reclassification

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

Recently Issued Accounting Pronouncement:

In August 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance related to disclosure of uncertainties about an entity’s ability to continue as a going concern. The new guidance requires management to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, as necessary, to provide related footnote disclosures. The guidance has an effective date of December 31, 2016.

In May 2014, Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", a comprehensive new revenue recognition standard that will supersede existing revenue guidance under US GAAP and IFRS ("ASU 2014-09"). ASU 2014-09's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that period. Early adoption is not permitted under US GAAP. The Company is currently evaluating the method of adoption, as well as the effect that adoption of this ASU will have on its consolidated financial statements.

In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-08 (ASU 2014-08) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The new guidance limits the presentation of discontinued operations to business circumstances when the disposal of the business operation represents a strategic shift that has had or will have a major effect on operations and financial results. This guidance is effective for fiscal years beginning January 1, 2015. The company believes that the adoption of this new standard will not materially impact its consolidated financial statements.

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS

12 Months Ended

Dec. 31, 2014

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. In March 2014, the paid the sellers the remaining deferred payments.

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	$	490
Intangible assets		715

Total assets acquired	$	1,205

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 paid on May 25, 2014, and $ 600 is contingently payable upon the business meeting certain operational targets in 2013 and 2014. The amount related to operational targets of 2013 was paid in September 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	$	119
Intangible assets		464
Goodwill		1,035

Total assets acquired	$	1,618

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 amount related to operational targets of 2013 was paid in September 2014. On September 2014 the company decreased the total consideration according to 2014 results by $997 recorded in the Company’s statement of operations. 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

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

In addition, the Company acquired additional activities during the years ended December 31, 2013 and 2014, whose influence on the financial statements of the Company was immaterial, for a total consideration of $ 0.9 million and $0.7 million, respectively.

On October 1, 2014 the Company acquired the operations Formula Telecom Solutions Ltd. (FTS), an Israel-based software vendor, for a total consideration of $5,800. FTS specializes in the development, sale, service and support of Business Support Systems (BSS), including convergent charging, billing, customer management, policy control and payment software solutions for the telecommunications. The Company believes the acquisition will broaden its professional service offering to its existing and new customers in the fields of Business Support Systems, including convergent charging, billing, customer management and policy control. 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 October 1, 2014.

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

Net Assets	$	(57)
Intangible assets		2,951
Goodwill		2,906

Total assets acquired	$	5,800

MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2014

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,
	2013								2014
	Amortized cost		Unrealized losses		Unrealized gains		Market value		Amortized cost		Unrealized losses		Unrealized gains		Market value
Available-for-sale:

Governmental bonds	$	407	$	-	$	3	$	410	$	11,916	$	(232)	$	-	$	11,684
Commercial bonds		190		-		25		215		-		-		-		-
Equity funds		119		-		110		229		116		-		115		231

Total available-for-sale marketable securities	$	716	$	-	$	138	$	854	$	12,032	$	(232)	$	115	$	11,915

Marketable securities with contractual maturities from one to three years are as follows:

			Unrealized gains (losses)
	Amortized cost		Gains		Losses		Market value
Due between one to three years	$	6,219	$	-	$	(124)	$	6,095

	$	6,219	$	-	$	(124)	$	6,095

Marketable securities with contractual maturities from three to five years are as follows:

			Unrealized gains (losses)
	Amortized cost		Gains		Losses		Market value
Due between three to five years	$	5,697	$	-	$	(108)	$	5,589

	$	5,697	$	-	$	(108)	$	5,589

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 loss from available-for-sale securities		(35)

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

The following is the change in the other comprehensive income of available-for-sale securities during 2014:

	Other comprehensive income

Other comprehensive income from available-for-sale securities as of January 1, 2014	$	138

Unrealized losses from available-for-sale securities		(259)

Other comprehensive income from available-for-sale securities as of December 31, 2014	$	(121)

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2014

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, 2014
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Corporate bonds	$	-	$	11,684	$	-	$	11,684
Equity fund		231		-		-		231

Total financial assets	$	231	$	11,684	$	-	$	11,915

Liabilities:
Contingent consideration	$	-	$	-	$	382	$	382

Total financials liabilities	$	-	$	-	$	382	$	382

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

	December 31,
	2013		2014

Opening balance	$	1,942	$	3,981
Increase in contingent consideration		2,459		250
Payment in contingent consideration		(750)		(3,053)
Change in fair value of contingent consideration		-		(948)
Amortization of interest		330		152

Closing balance	$	3,981	$	382

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Other Accounts Receivable and Prepaid Expenses Disclosure [Text Block]

NOTE 6:-

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES

	December 31,
	2013		2014

Prepaid expenses	$	1,156	$	1,159
Government authorities		862		1,081
Deferred tax assets, net		1,949		554
Restricted deposits		289		149
Related parties		92		447
Other		861		583

	$	5,209	$	3,973

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7:-

PROPERTY AND EQUIPMENT

	December 31,
	2013		2014
Cost:

Leasehold improvements	$	546	$	523
Computers and peripheral equipment		10,106		12,942
Office furniture and equipment		2,639		2,620
Motor vehicles		98		177
Software		1,962		3,478

		15,351		19,740
Accumulated depreciation:

Leasehold improvements		288		175
Computers and peripheral equipment		9,657		12,426
Office furniture and equipment		1,947		1,985
Motor vehicles		68		133
Software		1,618		3,016

		13,578		17,735

Depreciated cost	$	1,773	$	2,005

Depreciation expenses amounted to $ 757, $ 656 and $ 675 for the years ended December 31, 2012, 2013 and 2014, respectively.

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

NOTE 8:-

INTANGIBLE ASSETS

Intangible assets:

	December 31,
	2013		2014
Original amounts:

Capitalized software costs	$	59,069	$	63,260
Customer relationships		23,843		26,618
Backlog and non-compete agreement		1,554		1,623
Acquired technology		3,112		4,862

		87,578		96,363
Accumulated amortization:

Capitalized software costs		45,075		49,072
Customer relationships		8,895		12,817
Backlog and non-compete agreement		630		1,142
Acquired technology		429		789

		55,029		63,820

Intangible assets, net	$	32,549	$	32,543

Amortization expenses amounted to $ 6,687, $ 7,724 and $ 7,919 for the years ended December 31, 2012, 2013 and 2014, respectively.

The estimated future amortization expense of intangible assets as of December 31, 2014 is as follows:

2015		8,230
2016		7,140
2017		5,764
2018		4,383
2019		3,043
2020 and thereafter		3,983

	$	32,543

GOODWILL

12 Months Ended

Dec. 31, 2014

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, 2013 and 2014 according to the Company's reporting units are as follows (see also 16):

	IT professional services		Software services		Total

As of January 1, 2013	$	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

Business combination		-		3,664		3,664
Classifications		-		(496)		(735)
Foreign currency translation adjustments		(1,906)		(1,085)		(2,752)

As of December 31, 2014		26,589		28,901		55,490

The Company performed an annual impairment tests as of December 31, of each of 2012, 2013 and 2014 and did not identify any impairment losses (see Note 2).

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE

12 Months Ended

Dec. 31, 2014

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accrued Expenses and Other Accounts Payable [Text Block]

NOTE 10:-

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE

	December 31,
	2013		2014

Employees and payroll accruals	$	6,675	$	7,243
Accrued expenses		2,925		5,191
Deferred and contingent payments related to acquisitions		4,167		170
Government authorities		2,495		1,395
Other		675		1,014

	$	16,937	$	15,013

LONG TERM DEBT

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

NOTE 11:-

LONG TERM DEBT

	Interest rate as
	of December 31,	December 31,
	2014	2013		2014

	%
Loans from banks in USD ⁽¹⁾	3.7%	$	2,904	$	-
Loan from banks and other in NIS	4.1%-5.9%		405		481
Other long term debt			20		8

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

		$	2,274	$	490

(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. During 2014 the company repaid the loan.

(2)

On November 2013, the Company entered into a credit line agreement with a U.S. bank, under which the bank provides the Company with a credit line of $3 million for a period of three years. As of December 31, 2014, the Company had drawn down an amount of approximately $2.8 million from the credit line, which is subject to interest equal to the Prime Rate in effect from time to time, plus 3% per annum; provided that the interest rate in effect on any day shall not be less than 6.0% per annum. In relation to this credit line, the Company is obliged by the bank to comply with certain financial covenants, as defined in the agreement. As of December 31, 2014, the Company was in full compliance with the financial covenants. During January 2015 the company fully repaid the credit line.

TAXES ON INCOME

12 Months Ended

Dec. 31, 2014

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 25% in 2012, 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 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, 2014, 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, 2014, 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.

The Company and certain of its Israeli subsidiaries intend to apply the new incentives regime under the Amendment to their industrial activity in Israel starting in 2014 and believes it will qualify as an “Beneficiary Company” under the Amendment.

The Company's Israeli entities have received final tax assessments for their Israeli tax return filings through the year 2010.

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.

The amount of the Company cash and cash equivalents that are currently held outside of Israel that would be subject to income taxes if distributed as dividends is $21.2 million. However, a determination of the amount of the unrecognized deferred tax liability for temporary difference related to those undistributed earnings of foreign subsidiaries is not practicable due to the complexity of the structure of our group of subsidiaries for tax purposes and the difficulty of projecting the amount of future tax liability

Net operating loss carryforwards:

As of December 31, 2014, the Company and its Israeli subsidiaries had operating loss carryforwards of $ 15,929, 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 $ 4,999 as of December 31, 2014, to offset against future taxable income.

The Company's subsidiaries in the U.S. had estimated total available tax loss carryforwards of $ 427 as of December 31, 2014, 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,
	2012		2013		2014

Domestic	$	10,462	$	16,165	$	14,690
Foreign		6,092		2,266		4,183

	$	16,554	$	18,431	$	18,873

Taxes on income:

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

	Year ended December 31,
	2012		2013		2014
Current:

Domestic	$	(1,291)	$	(1,277)	$	241
Foreign		302		781		689

		(989)		(496)		930
Deferred taxes:

Domestic		414		2,673		2,575
Foreign		669		(602)		(1,198)

		1,083		2,071		1,377

Taxes on income (tax benefit)	$	94	$	1,575	$	2,307

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,
	2013		2014

Net operating loss carryforwards	$	5,293	$	4,627
Allowances, reserves and intangible assets		1,207		1,080

Deferred tax assets before valuation allowance		6,500		5,707
Less - valuation allowance		(1,154)		(3,570)

Deferred tax assets		5,346		2,137
Capitalized software costs		(1,723)		-

Deferred tax assets, net	$	3,623	$	2,137

	December 31,
	2013		2014

Current tax assets	$	1,949	$	554
Non-current tax assets		1,674		1,583

Deferred tax assets	$	3,623	$	2,137

Current taxes are included under other accounts receivable and prepaid expenses.

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

	December 31,
	2013		2014

Current tax liabilities	$	2,567	$	760
Non-current tax liabilities		2,204		4,086

Net deferred tax liabilities	$	4,771	$	4,846

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

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

Reconciling items between the 2012, 2013 and 2014 statutory tax rate (25%, 25% and 26.5%, respectively) of the Company and the effective tax rate is presented in the following table:

	Year ended December 31,
	2012			2013			2014

Income before taxes, as reported in the consolidated statements of income	$	16,554		$	18,431		$	18,873

Statutory tax rate		25	%		25	%		26.5	%

Theoretical tax expenses on the above amount at the Israeli statutory tax rate	$	4,139		$	4,609		$	5,001
Tax adjustment in respect of different tax rates		444			484			80
Deferred taxes on losses for which full valuation allowance was provided in the past		651			(304)			236
Changes in valuation allowance		(2,003)			-			-
Tax benefits in respect of prior years, net		(1,126)	*)		203			(516)
Nondeductible expenses		20			95			82
Uncertain tax position and other differences		(2,031)	**)		(3,512)			(2,576)

Income tax (tax benefit)	$	94		$	1,575		$	2,307

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, 2012, 2013 and 2014, the Company recorded $ 219, $2,811 and $ 156 of tax 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 benefits 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

Increase in tax positions taken in prior years		-

Decrease in tax positions taken in prior years		(156)

Gross unrecognized tax benefits at December 31, 2014	$	342

As of December 31, 2014, 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, 2014

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. The warrants expired on June 2014.

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, 2014, an aggregate of 1,001,563 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, 2014 and changes during the year ended December 31, 2014 are as follows:

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

Outstanding at January 1, 2014	703,110	$	3.16		6.68	$	2,298
Granted	155,000	$	7.47
Exercised	(115,721)	$	1.86
Forfeited	(3,500)	$	4.00

Outstanding at December 31, 2014	738,889	$	4.26		6.42	$	1,248

Exercisable at December 31, 2014	448,639	$	2.95		5.03	$	1,348

Vested and expected to vest at December 31, 2014	738,889	$	4.26		6.42	$	1,248

The weighted-average grant-date fair value of options granted during the years ended December 31, 2012, 2013 and 2014 was $4, $ 6 and $ 3.76, 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, 2014. 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, 2012, 2013 and 2014 was $ 572, $ 529 and $ 741, respectively. As of December 31, 2014, there was $ 646 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 options outstanding as of December 31, 2014, have been separated into ranges of exercise price categories, as follows:

									Weighted
			Weighted						average
			average						exercise
			remaining		Weighted				price
	Options		contractual life		average		Options		of exercisable
Exercise price	outstanding		(years)		exercise price		exercisable		options
In $
0-1		4,000		4.24	$	-		4,000	$	-
1.01-2		69,200		1.85	$	1.20		69,200	$	1.20
2.01-3		173,667		4.80	$	2.30		173,667	$	2.30
3.01-4		252,022		6.12	$	3.96		180,522	$	3.95
4.01-5		-		-	$	-		-	$	-
5.01-6		85,000		8.61	$	6.00		21,250	$	6.00
6.01-7		75,000		9.87	$	6.89		-	$	-
7.01-8		-		-	$	-		-	$	-
8.01-9		80,000		9.36	$	8.01		-	$	-

		738,889		6.42	$	4.26		448,639	$	2.95

Accumulated other comprehensive income:

	December 31,
	2012		2013		2014

Accumulated realized and unrealized gain on available-for-sale securities, net	$	173	$	138	$	(121)
Accumulated foreign currency translation adjustments		(776)		(327)		(5,243)
Accumulated unrealized gain (loss) on derivative instruments, net		17		17		17

Total other comprehensive income	$	(586)	$	(172)	$	(5,347)

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 ($ 4,468 in the aggregate) which was paid on March 14, 2014. On August 19, 2014 the Company declared a dividend distribution of $ 0.095 per share ($ 4,195 in the aggregate) which was paid on September 4, 2014. On February 4, 2015, the Company declared a dividend distribution of $ 0.081 per share (see also note 18).

On November 2014, a Company's subsidiary granted one of its executive options exercisable for 1,167 ordinary shares in its subsidiary. The options are vested in equal quarterly installments, over a four year period that commences in January 1, 2013 and concludes in March 31, 2016, if meeting a certain operational margin during 2013, 2014 and 2015. The exercise price of the options is NIS 1 per share. Total fair value of the grant was calculated based on the Company subsidiary’s fair value on the grant date and totaled NIS 5,910 thousand (NIS 5 thousand per share).

SELECTED STATEMENTS OF INCOME DATA

12 Months Ended

Dec. 31, 2014

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,
	2012		2013		2014

Total costs	$	7,916	$	8,419	$	9,017
Less - capitalized software costs		(4,969)		(4,713)		(4,267)

Research and development, net	$	2,947	$	3,706	$	4,750

Financial income (expenses), net:

Interest income net of bank charges	$	20	$	(170)	$	(156)
Interest expenses related to liabilities in connection with acquisitions		(48)		(407)		(152)
Interest income from debt instruments		49		46		91
Loss arising from foreign currency translation and other		(11)		(153)		(1,569)

Financial income(expenses), net	$	10	$	(684)	$	(1,786)

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

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, 2014, are as follows:

2015	$	1,798
2016		773
2017		578
2018 and thereafter		583

	$	3,732

Rent expenses for the years ended December 31, 2012, 2013 and 2014 were approximately $1,701, $1,911 and $1,736, 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 $147.

The Company currently occupies approximately 59,546 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 $295, which are linked to the New Israeli Shekels, all of which will be terminated during 2015 and 2016.

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 sought damages in the amount of approximately NIS 52 million (approximately $15 million). The arbitrator determined that both the company and its subsidiary breached the non-disclosure agreement. In January 2015 the arbitrator rendered his ruling and determined that the company should pay damages to the plaintiffs. The company financial results of operations include a net impact of $1.6 million resulting from the arbitration. The company is considering its options following this ruling.

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.

NET EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2014

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,
	2012		2013		2014

Numerator for basic and diluted earnings per share - net income available to Magic shareholders	$	16,183	$	15,880	$	15,403

Weighted average ordinary shares outstanding:

Denominator for basic net earnings per share		36,502,264		36,835,163		43,287,523
Effect of dilutive securities		605,406		458,753		17,291

Denominator for diluted net earnings per share		37,107,670		37,293,916		43,304,814

Basic and diluted earnings per share	$	0.44	$	0.43	$	0.36

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2014

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
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

	Software services		IT professional services		Unallocated expense		Total
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

2014

Total revenues	$	69,861	$	94,443	$	-	$	164,304
Expenses		54,464		84,873		4,241		143,578

Segment operating income (loss)	$	15,397	$	9,570	$	(4,241)	$	20,726

Depreciation and amortization	$	6,065	$	2,263	$	266	$	8,594

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, 2012, 2013 and 2014:

	Year ended December 31,
	2012		2013		2014

Israel	$	11,561	$	24,006	$	29,198
Europe		29,139		31,386		37,409
United States		64,591		70,872		78,606
Japan		12,661		11,965		11,299
Other		8,428		6,729		3,927

	$	126,380	$	144,958	$	164,304

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

	December 31,
	2013		2014

Israel	$	54,656	$	58,263
Europe		3,117		1,523
United States		23,287		22,174
Japan		5,180		4,786
Other		3,395		3,291

	$	89,634	$	90,039

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

In 2012, 2013 and 2014, the Company had one customer, included in the IT professional services segment, which accounted for 19%, 13% and 10% of the group revenues, respectively.

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 18:-

SUBSEQUENT EVENTS

On February 25, 2015 the Company entered into a definitive agreement to acquire a 70% stake, with an option to increase the holding to 100%, in an Israeli-based company specializes in software professional services for mainframes and complex large-scale environments. The acquisition is subject to the fulfillment of certain conditions defined in the acquisition agreement.

On February 4, 2015, the Company declared a dividend distribution of $ 0.081 per share ($ 3,582 in the aggregate) which will be paid on March 11, 2015. The dividend distribution relates to the Company's earnings in the second half of 2014.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

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, 2014		2,721
Net income attributable to redeemable non-controlling interests		425
Non-controlling interest as part of acquisitions		158
Foreign currency translation adjustments		(374)

December 31, 2014		2,930

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 NIS, 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, 2012, 2013 and 2014, no impairment was identified.

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

Goodwill

The Company performed an annual impairment tests as of December 31, of each of 2012, 2013 and 2014 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, 2012, 2013 and 2014 amounted to approximately $ 829, $ 1,371 and $ 1,673, 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 assumptions:

	2013	2014

Dividend yield	0%	0%
Expected volatility	32% - 59%	32% - 59%
Risk-free interest rate	0.1% - 2.6%	0.1% - 2.6%
Expected forfeiture (employees)	-	-
Expected forfeiture (executives)	-	-
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	2	-
Suboptimal exercise multiple (executives)	2	2

	Year ended December 31,
	2012		2013		2014

Cost of revenue	$	16	$	11	$	30
Research and development		114		67		29
Selling and marketing		82		85		220
General and administrative		303		162		1,278

Total stock-based compensation expense	$	515	$	325	$	1,557

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.

The notional principal of foreign exchange contracts to purchase NIS with U.S. dollars was $ 0 and $ 1,736 as of December 31, 2013 and 2014, respectively.

At December 31, 2014, 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	2013			2014
Assets

Derivatives not designated as hedging	"Other accounts receivable and prepaid expenses"	$	-	$	9

Total derivatives		$	-	$	9

		Gain (loss)
		recognized in the
	Statements	statements of income
	of	Year ended December 31,
	income item	2012		2013		2014

Derivatives not designated as hedging:
Foreign exchange forward contracts	"Financial expenses, net"		245		139		24

Total derivatives		$	245	$	139	$	24

Reclassification, Policy [Policy Text Block]

Reclassification

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncement:

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

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

January 1, 2014		2,721
Net income attributable to redeemable non-controlling interests		425
Non-controlling interest as part of acquisitions		158
Foreign currency translation adjustments		(374)

December 31, 2014		2,930

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 assumptions:

	2013	2014

Dividend yield	0%	0%
Expected volatility	32% - 59%	32% - 59%
Risk-free interest rate	0.1% - 2.6%	0.1% - 2.6%
Expected forfeiture (employees)	-	-
Expected forfeiture (executives)	-	-
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	2	-
Suboptimal exercise multiple (executives)	2	2

Schedule Of Stock Based Compensation Expense [Table Text Block]

	Year ended December 31,
	2012		2013		2014

Cost of revenue	$	16	$	11	$	30
Research and development		114		67		29
Selling and marketing		82		85		220
General and administrative		303		162		1,278

Total stock-based compensation expense	$	515	$	325	$	1,557

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	2013			2014
Assets

Derivatives not designated as hedging	"Other accounts receivable and prepaid expenses"	$	-	$	9

Total derivatives		$	-	$	9

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

		Gain (loss)
		recognized in the
	Statements	statements of income
	of	Year ended December 31,
	income item	2012		2013		2014

Derivatives not designated as hedging:
Foreign exchange forward contracts	"Financial expenses, net"		245		139		24

Total derivatives		$	245	$	139	$	24

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

12 Months Ended

Dec. 31, 2014

App Builder [Member]

Business Acquisition [Line Items]

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

Comm It Group [Member]

Business Acquisition [Line Items]

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

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

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

Business Acquisition [Line Items]

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	$	490
Intangible assets		715

Total assets acquired	$	1,205

Valinor Ltd [Member]

Business Acquisition [Line Items]

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	$	119
Intangible assets		464
Goodwill		1,035

Total assets acquired	$	1,618

Dario solutions IT Ltd [Member]

Business Acquisition [Line Items]

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

Allstates Technical Services, LLC [Member]

Business Acquisition [Line Items]

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

Formula Telecom Solutions Ltd [Member]

Business Acquisition [Line Items]

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	$	(57)
Intangible assets		2,951
Goodwill		2,906

Total assets acquired	$	5,800

MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2013								2014
	Amortized cost		Unrealized losses		Unrealized gains		Market value		Amortized cost		Unrealized losses		Unrealized gains		Market value
Available-for-sale:

Governmental bonds	$	407	$	-	$	3	$	410	$	11,916	$	(232)	$	-	$	11,684
Commercial bonds		190		-		25		215		-		-		-		-
Equity funds		119		-		110		229		116		-		115		231

Total available-for-sale marketable securities	$	716	$	-	$	138	$	854	$	12,032	$	(232)	$	115	$	11,915

Investments Classified by Contractual Maturity Date [Table Text Block]

Marketable securities with contractual maturities from one to three years are as follows:

			Unrealized gains (losses)
	Amortized cost		Gains		Losses		Market value
Due between one to three years	$	6,219	$	-	$	(124)	$	6,095

	$	6,219	$	-	$	(124)	$	6,095

Marketable securities with contractual maturities from three to five years are as follows:

			Unrealized gains (losses)
	Amortized cost		Gains		Losses		Market value
Due between three to five years	$	5,697	$	-	$	(108)	$	5,589

	$	5,697	$	-	$	(108)	$	5,589

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 2013:

	Other
	comprehensive
	income

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

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

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

The following is the change in the other comprehensive income of available-for-sale securities during 2014:

	Other comprehensive income

Other comprehensive income from available-for-sale securities as of January 1, 2014	$	138

Unrealized losses from available-for-sale securities		(259)

Other comprehensive income from available-for-sale securities as of December 31, 2014	$	(121)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Corporate bonds	$	-	$	11,684	$	-	$	11,684
Equity fund		231		-		-		231

Total financial assets	$	231	$	11,684	$	-	$	11,915

Liabilities:
Contingent consideration	$	-	$	-	$	382	$	382

Total financials liabilities	$	-	$	-	$	382	$	382

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

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

	December 31,
	2013		2014

Opening balance	$	1,942	$	3,981
Increase in contingent consideration		2,459		250
Payment in contingent consideration		(750)		(3,053)
Change in fair value of contingent consideration		-		(948)
Amortization of interest		330		152

Closing balance	$	3,981	$	382

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

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

	December 31,
	2013		2014

Prepaid expenses	$	1,156	$	1,159
Government authorities		862		1,081
Deferred tax assets, net		1,949		554
Restricted deposits		289		149
Related parties		92		447
Other		861		583

	$	5,209	$	3,973

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property Plant And Equipment And Intangible Assets [Table Text Block]

	December 31,
	2013		2014
Cost:

Leasehold improvements	$	546	$	523
Computers and peripheral equipment		10,106		12,942
Office furniture and equipment		2,639		2,620
Motor vehicles		98		177
Software		1,962		3,478

		15,351		19,740
Accumulated depreciation:

Leasehold improvements		288		175
Computers and peripheral equipment		9,657		12,426
Office furniture and equipment		1,947		1,985
Motor vehicles		68		133
Software		1,618		3,016

		13,578		17,735

Depreciated cost	$	1,773	$	2,005

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

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

Intangible assets:

	December 31,
	2013		2014
Original amounts:

Capitalized software costs	$	59,069	$	63,260
Customer relationships		23,843		26,618
Backlog and non-compete agreement		1,554		1,623
Acquired technology		3,112		4,862

		87,578		96,363
Accumulated amortization:

Capitalized software costs		45,075		49,072
Customer relationships		8,895		12,817
Backlog and non-compete agreement		630		1,142
Acquired technology		429		789

		55,029		63,820

Intangible assets, net	$	32,549	$	32,543

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

The estimated future amortization expense of intangible assets as of December 31, 2014 is as follows:

2015		8,230
2016		7,140
2017		5,764
2018		4,383
2019		3,043
2020 and thereafter		3,983

	$	32,543

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2014

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, 2013 and 2014 according to the Company's reporting units are as follows (see also 16):

	IT professional services		Software services		Total

As of January 1, 2013	$	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

Business combination		-		3,664		3,664
Classifications		-		(496)		(735)
Foreign currency translation adjustments		(1,906)		(1,085)		(2,752)

As of December 31, 2014		26,589		28,901		55,490

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Tables)

12 Months Ended

Dec. 31, 2014

Accounts Payable and Accrued Liabilities [Abstract]

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

	December 31,
	2013		2014

Employees and payroll accruals	$	6,675	$	7,243
Accrued expenses		2,925		5,191
Deferred and contingent payments related to acquisitions		4,167		170
Government authorities		2,495		1,395
Other		675		1,014

	$	16,937	$	15,013

LONG TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

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

	Interest rate as
	of December 31,	December 31,
	2014	2013		2014

	%
Loans from banks in USD ⁽¹⁾	3.7%	$	2,904	$	-
Loan from banks and other in NIS	4.1%-5.9%		405		481
Other long term debt			20		8

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

		$	2,274	$	490

(1)

(2)

TAXES ON INCOME (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2012		2013		2014

Domestic	$	10,462	$	16,165	$	14,690
Foreign		6,092		2,266		4,183

	$	16,554	$	18,431	$	18,873

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

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

	Year ended December 31,
	2012		2013		2014
Current:

Domestic	$	(1,291)	$	(1,277)	$	241
Foreign		302		781		689

		(989)		(496)		930
Deferred taxes:

Domestic		414		2,673		2,575
Foreign		669		(602)		(1,198)

		1,083		2,071		1,377

Taxes on income (tax benefit)	$	94	$	1,575	$	2,307

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

	December 31,
	2013		2014

Net operating loss carryforwards	$	5,293	$	4,627
Allowances, reserves and intangible assets		1,207		1,080

Deferred tax assets before valuation allowance		6,500		5,707
Less - valuation allowance		(1,154)		(3,570)

Deferred tax assets		5,346		2,137
Capitalized software costs		(1,723)		-

Deferred tax assets, net	$	3,623	$	2,137

Schedule Of Deferred Tax Assets [Table Text Block]

	December 31,
	2013		2014

Current tax assets	$	1,949	$	554
Non-current tax assets		1,674		1,583

Deferred tax assets	$	3,623	$	2,137

Schedule Of Deferred Tax Liabilities [Table Text Block]

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

	December 31,
	2013		2014

Current tax liabilities	$	2,567	$	760
Non-current tax liabilities		2,204		4,086

Net deferred tax liabilities	$	4,771	$	4,846

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

Reconciling items between the 2012, 2013 and 2014 statutory tax rate (25%, 25% and 26.5%, respectively) of the Company and the effective tax rate is presented in the following table:

	Year ended December 31,
	2012			2013			2014

Income before taxes, as reported in the consolidated statements of income	$	16,554		$	18,431		$	18,873

Statutory tax rate		25	%		25	%		26.5	%

Theoretical tax expenses on the above amount at the Israeli statutory tax rate	$	4,139		$	4,609		$	5,001
Tax adjustment in respect of different tax rates		444			484			80
Deferred taxes on losses for which full valuation allowance was provided in the past		651			(304)			236
Changes in valuation allowance		(2,003)			-			-
Tax benefits in respect of prior years, net		(1,126)	*)		203			(516)
Nondeductible expenses		20			95			82
Uncertain tax position and other differences		(2,031)	**)		(3,512)			(2,576)

Income tax (tax benefit)	$	94		$	1,575		$	2,307

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 benefits 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

Increase in tax positions taken in prior years		-

Decrease in tax positions taken in prior years		(156)

Gross unrecognized tax benefits at December 31, 2014	$	342

EQUITY (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014 and changes during the year ended December 31, 2014 are as follows:

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

Outstanding at January 1, 2014	703,110	$	3.16		6.68	$	2,298
Granted	155,000	$	7.47
Exercised	(115,721)	$	1.86
Forfeited	(3,500)	$	4.00

Outstanding at December 31, 2014	738,889	$	4.26		6.42	$	1,248

Exercisable at December 31, 2014	448,639	$	2.95		5.03	$	1,348

Vested and expected to vest at December 31, 2014	738,889	$	4.26		6.42	$	1,248

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, 2014, have been separated into ranges of exercise price categories, as follows:

									Weighted
			Weighted						average
			average						exercise
			remaining		Weighted				price
	Options		contractual life		average		Options		of exercisable
Exercise price	outstanding		(years)		exercise price		exercisable		options
In $
0-1		4,000		4.24	$	-		4,000	$	-
1.01-2		69,200		1.85	$	1.20		69,200	$	1.20
2.01-3		173,667		4.80	$	2.30		173,667	$	2.30
3.01-4		252,022		6.12	$	3.96		180,522	$	3.95
4.01-5		-		-	$	-		-	$	-
5.01-6		85,000		8.61	$	6.00		21,250	$	6.00
6.01-7		75,000		9.87	$	6.89		-	$	-
7.01-8		-		-	$	-		-	$	-
8.01-9		80,000		9.36	$	8.01		-	$	-

		738,889		6.42	$	4.26		448,639	$	2.95

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

Accumulated other comprehensive income:

	December 31,
	2012		2013		2014

Accumulated realized and unrealized gain on available-for-sale securities, net	$	173	$	138	$	(121)
Accumulated foreign currency translation adjustments		(776)		(327)		(5,243)
Accumulated unrealized gain (loss) on derivative instruments, net		17		17		17

Total other comprehensive income	$	(586)	$	(172)	$	(5,347)

SELECTED STATEMENTS OF INCOME DATA (Tables)

12 Months Ended

Dec. 31, 2014

Selected Statement Of Income Data [Abstract]

Schedule Of Research and Development Expense [Table Text Block]

Research and development costs, net:

	Year ended December 31,
	2012		2013		2014

Total costs	$	7,916	$	8,419	$	9,017
Less - capitalized software costs		(4,969)		(4,713)		(4,267)

Research and development, net	$	2,947	$	3,706	$	4,750

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

Financial income (expenses), net:

Interest income net of bank charges	$	20	$	(170)	$	(156)
Interest expenses related to liabilities in connection with acquisitions		(48)		(407)		(152)
Interest income from debt instruments		49		46		91
Loss arising from foreign currency translation and other		(11)		(153)		(1,569)

Financial income(expenses), net	$	10	$	(684)	$	(1,786)

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014, are as follows:

2015	$	1,798
2016		773
2017		578
2018 and thereafter		583

	$	3,732

NET EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2012		2013		2014

Numerator for basic and diluted earnings per share - net income available to Magic shareholders	$	16,183	$	15,880	$	15,403

Weighted average ordinary shares outstanding:

Denominator for basic net earnings per share		36,502,264		36,835,163		43,287,523
Effect of dilutive securities		605,406		458,753		17,291

Denominator for diluted net earnings per share		37,107,670		37,293,916		43,304,814

Basic and diluted earnings per share	$	0.44	$	0.43	$	0.36

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2014

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
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

	Software services		IT professional services		Unallocated expense		Total
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

2014

Total revenues	$	69,861	$	94,443	$	-	$	164,304
Expenses		54,464		84,873		4,241		143,578

Segment operating income (loss)	$	15,397	$	9,570	$	(4,241)	$	20,726

Depreciation and amortization	$	6,065	$	2,263	$	266	$	8,594

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, 2012, 2013 and 2014:

	Year ended December 31,
	2012		2013		2014

Israel	$	11,561	$	24,006	$	29,198
Europe		29,139		31,386		37,409
United States		64,591		70,872		78,606
Japan		12,661		11,965		11,299
Other		8,428		6,729		3,927

	$	126,380	$	144,958	$	164,304

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,
	2013		2014

Israel	$	54,656	$	58,263
Europe		3,117		1,523
United States		23,287		22,174
Japan		5,180		4,786
Other		3,395		3,291

	$	89,634	$	90,039

SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Redeemable Noncontrolling Interest [Line Items]
January 1, 2014	$ 2,721
Net income attributable to redeemable non-controlling interests	425	546	184
Non-controlling interest as part of acquisitions	158
Foreign currency translation adjustments	(374)
December 31, 2014	$ 2,930	$ 2,721

SIGNIFICANT ACCOUNTING POLICIES (Details 1)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Dec. 31, 2014
Computers and Peripheral Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
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 [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Maximum [Member] \| Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] \| Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Minimum [Member] \| Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years

SIGNIFICANT ACCOUNTING POLICIES (Details 2)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details 2)	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility, Minimum	32.00%	32.00%
Expected volatility, Maximum	59.00%	59.00%
Risk-free interest rate, Minimum	0.10%	0.10%
Risk-free interest rate, Maximum	2.60%	2.60%
Expected forfeiture (employees)	0.00%	0.00%
Expected forfeiture (executives)	0.00%	0.00%
Contractual term of up to	10 years	10 years
Suboptimal exercise multiple (employees)	0	2
Suboptimal exercise multiple (executives)	2	2

SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,557us-gaap_ShareBasedCompensation	$ 325us-gaap_ShareBasedCompensation	$ 515us-gaap_ShareBasedCompensation
Cost Of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	30	11	16
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	29	67	114
Selling and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	220	85	82
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,278	$ 162	$ 303

SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Total derivatives	$ 9	$ 0
Other Accounts Receivable and Prepaid Expenses [Member]
ASSETS
Derivatives not designated as hedging	$ 9	$ 0

SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Derivatives not designated as hedging:
Total derivatives	$ 24	$ 139	$ 245
Financial Expenses [Member]
Derivatives not designated as hedging:
Foreign exchange forward contracts	$ 24	$ 139	$ 245

SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended	12 Months Ended
	Sep. 04, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Advertising Expense		$ 466us-gaap_AdvertisingExpense	$ 306us-gaap_AdvertisingExpense	$ 556us-gaap_AdvertisingExpense
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		35,010	536,877	669,887
Unrecognized Tax Benefits Income (Expenses)		735	1,285	420
Dividend Distribution Maximum Percentage	50.00%	50.00%		50.00%
Allocated Share-based Compensation Expense		1,557	325	515
Severance Costs		0us-gaap_SeveranceCosts1	0us-gaap_SeveranceCosts1	8us-gaap_SeveranceCosts1
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		$ 1,736	$ 0
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	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	May 31, 2013	Dec. 27, 2011	Feb. 26, 2013	May 16, 2013	May 30, 2013	Nov. 30, 2013	Oct. 01, 2014
Business Acquisition [Line Items]
Goodwill	$ 55,490us-gaap_Goodwill	$ 55,313us-gaap_Goodwill	$ 44,663us-gaap_Goodwill
Scenario, Previously Reported [Member]
Business Acquisition [Line Items]
Net assets			1,219
Non-controlling interest			(1,880)
Intangible assets			3,873
Goodwill			5,809
Deferred tax liability, net			0
Total assets acquired			9,021
Restatement Adjustment [Member]
Business Acquisition [Line Items]
Net assets				14
Non-controlling interest				130
Intangible assets				397
Goodwill				439
Deferred tax liability, net				(1,068)
Total assets acquired				(88)
Modified [Member]
Business Acquisition [Line Items]
Net assets				1,233
Non-controlling interest				(1,750)
Intangible assets				4,270
Goodwill				6,248
Deferred tax liability, net				(1,068)
Total assets acquired				8,933
App Builder [Member]
Business Acquisition [Line Items]
Net liabilities					(3,248)
Intangible assets					7,251
Goodwill					8,702
Total assets acquired					12,705
Pilat Europe Limited Ltd and Pilat North America Inc [Member]
Business Acquisition [Line Items]
Net assets						490
Intangible assets						715
Total assets acquired						1,205
Valinor Ltd [Member]
Business Acquisition [Line Items]
Net assets							119
Intangible assets							464
Goodwill							1,035
Total assets acquired							1,618
Dario solutions IT Ltd [Member]
Business Acquisition [Line Items]
Net assets								371
Intangible assets								707
Goodwill								2,645
Total assets acquired								3,723
Allstates Technical Services [Member]
Business Acquisition [Line Items]
Net assets									3,063
Intangible assets									2,874
Goodwill									5,026
Total assets acquired									10,963
Formula Telecom Solutions Ltd [Member]
Business Acquisition [Line Items]
Net assets										(57)
Intangible assets										2,951
Goodwill										2,906
Total assets acquired										$ 5,800

BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended			0 Months Ended	1 Months Ended	0 Months Ended		1 Months Ended	0 Months Ended		1 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 27, 2011	Jul. 31, 2012	Feb. 26, 2013	May 16, 2013	May 31, 2013	May 30, 2013	Nov. 11, 2013	Oct. 01, 2014	Dec. 31, 2011	Nov. 30, 2013	May 25, 2014	Feb. 28, 2014
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Total	$ 700	$ 900
Net Income (Loss) Attributable To Redeemable Noncontrolling Interest	425	546	184
App Builder [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross			140	12,565
Comm It Group [Member]
Business Acquisition [Line Items]
Equity Method Investment, Ownership Percentage					20.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage					80.00%
Business Acquisition Contingent Consideration Deferred Payment					2,751
Business Acquisitions Contingent Consideration At Fair Value					3,943
Business Combination, Consideration Transferred, Total					8,933
Business Acquisitions Contingent Consideration Potential Cash Payment					1,192
Net Income (Loss) Attributable To Redeemable Noncontrolling Interest					1,750
Payments to Acquire Businesses, Gross					4,990
Pilat Europe Limited Ltd and Pilat North America Inc [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross						1,233
Valinor Ltd [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Total		230					339	1,618
Business Combination Consideration Contingent On Operational Target							600						339
Valinor Ltd [Member] \| Subsequent Event [Member]
Business Acquisition [Line Items]
Business Combination Consideration Contingent On Operational Target														340
Dario solutions IT Ltd [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Total	997							3,723	1,100
Business Combination Consideration Contingent On Operational Target	1,717														906
Allstates Technical Services, LLC [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Total										10,963
Formula Telecom Solutions Ltd [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Total											5,800
Customer Relationships [Member] \| App Builder [Member]
Business Acquisition [Line Items]
Business Acquisition Purchase Price Allocation Customer Relationships				4,430
Amortization Of Acquired Intangible Assets Term												15 years
Backlog [Member] \| App Builder [Member]
Business Acquisition [Line Items]
Amortization Of Acquired Intangible Assets Term												15 years
Business Acquisition Purchase Price Allocation Backlog				683
Technology-Based Intangible Assets [Member] \| App Builder [Member]
Business Acquisition [Line Items]
Amortization Of Acquired Intangible Assets Term												3 years 6 months
Business Acquisition Purchase Price Allocation Developed Technology				$ 2,138

MARKETABLE SECURITIES (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Available-for-sale:
Amortized cost	$ 12,032	$ 716
Unrealized losses	(232)	0
Unrealized gains	115	138
Market value	11,915us-gaap_AvailableForSaleSecurities	854us-gaap_AvailableForSaleSecurities
Equity funds [Member]
Available-for-sale:
Amortized cost	116	119
Unrealized losses	0	0
Unrealized gains	115	110
Market value	231	229
Government bonds [Member]
Available-for-sale:
Amortized cost	11,916	407
Unrealized losses	(232)	0
Unrealized gains	0	3
Market value	11,684	410
Commercial bonds [Member]
Available-for-sale:
Amortized cost	0	190
Unrealized losses	0	0
Unrealized gains	0	25
Market value	$ 0	$ 215

MARKETABLE SECURITIES (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Unrealized gains (losses), Amortized cost	$ 12,032	$ 716
Unrealized gains (losses), Gains	115	138
Unrealized gains (losses), Losses	(232)	0
Unrealized gains (losses), Market value	11,915us-gaap_AvailableForSaleSecurities	854us-gaap_AvailableForSaleSecurities
Marketable Securities Due Between One To Three Years [Member]
Unrealized gains (losses), Amortized cost	6,219
Unrealized gains (losses), Gains	0
Unrealized gains (losses), Losses	(124)
Unrealized gains (losses), Market value	6,095
Total Marketable Securities Due Between One To Three Years [Member]
Unrealized gains (losses), Amortized cost	6,219
Unrealized gains (losses), Gains	0
Unrealized gains (losses), Losses	(124)
Unrealized gains (losses), Market value	6,095
Marketable Securities Due From Three To Five Years [Member]
Unrealized gains (losses), Amortized cost	5,697
Unrealized gains (losses), Gains	0
Unrealized gains (losses), Losses	(108)
Unrealized gains (losses), Market value	5,589
Total Marketable Securities Due From Three To Five Years [Member]
Unrealized gains (losses), Amortized cost	5,697
Unrealized gains (losses), Gains	0
Unrealized gains (losses), Losses	(108)
Unrealized gains (losses), Market value	$ 5,589

MARKETABLE SECURITIES (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Other comprehensive income from available-for-sale securities as of January 1, 2014	$ 138	$ 173
Unrealized loss from available-for-sale securities	(259)	(35)
Other comprehensive income from available-for-sale securities as of December 31, 2014	$ (121)	$ 138

FAIR VALUE MEASUREMENTS (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Assets:
Government bonds		$ 410mgic_GovernmentBondsFairValueDisclosure
Corporate bonds	11,684mgic_CorporateBondsFairValueDisclosure	215mgic_CorporateBondsFairValueDisclosure
Equity fund	231mgic_EquityFundFairValueDisclosure	229mgic_EquityFundFairValueDisclosure
Total financial assets	11,915us-gaap_AssetsFairValueDisclosure	854us-gaap_AssetsFairValueDisclosure
Liabilities:
Contingent consideration	382	3,981
Total financials liabilities	382us-gaap_LiabilitiesFairValueDisclosure	3,981us-gaap_LiabilitiesFairValueDisclosure
Fair Value, Inputs, Level 1 [Member]
Assets:
Government bonds		410
Corporate bonds	0	0
Equity fund	231	229
Total financial assets	231	639
Liabilities:
Contingent consideration	0	0
Total financials liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Government bonds		0
Corporate bonds	11,684	215
Equity fund	0	0
Total financial assets	11,684	215
Liabilities:
Contingent consideration	0	0
Total financials liabilities	0	0
Fair Value, Inputs, Level 3 [Member]
Assets:
Government bonds		0
Corporate bonds	0	0
Equity fund	0	0
Total financial assets	0	0
Liabilities:
Contingent consideration	382	3,981
Total financials liabilities	$ 382	$ 3,981

FAIR VALUE MEASUREMENTS (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Opening balance	$ 3,981	$ 1,942
Increase in contingent consideration	250	2,459
Payment in contingent consideration	(3,053)	(750)
Change in fair value of contingent consideration	(948)	0
Unrealized gains (losses), Losses	152	330
Closing balance	$ 382	$ 3,981

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Prepaid expenses	$ 1,159us-gaap_PrepaidExpenseCurrent	$ 1,156us-gaap_PrepaidExpenseCurrent
Government authorities	1,081	862
Deferred tax assets, net	554	1,949
Restricted deposits	149mgic_RestrictedDeposits	289mgic_RestrictedDeposits
Related parties	447us-gaap_DueFromRelatedPartiesCurrent	92us-gaap_DueFromRelatedPartiesCurrent
Other	583us-gaap_OtherPrepaidExpenseCurrent	861us-gaap_OtherPrepaidExpenseCurrent
Prepaid Expense and Other Assets, Current, Total	$ 3,973	$ 5,209

PROPERTY AND EQUIPMENT (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 19,740us-gaap_PropertyPlantAndEquipmentGross	$ 15,351us-gaap_PropertyPlantAndEquipmentGross
Accumulated depreciation	17,735	13,578
Depreciated cost	2,005us-gaap_PropertyPlantAndEquipmentNet	1,773us-gaap_PropertyPlantAndEquipmentNet
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	523	546
Accumulated depreciation	175	288
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	12,942	10,106
Accumulated depreciation	12,426	9,657
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,620	2,639
Accumulated depreciation	1,985	1,947
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	177	98
Accumulated depreciation	133	68
Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,478	1,962
Accumulated depreciation	$ 3,016	$ 1,618

PROPERTY AND EQUIPMENT (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Depreciation	$ 675us-gaap_Depreciation	$ 656us-gaap_Depreciation	$ 757us-gaap_Depreciation

INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 96,363	$ 87,578
Finite-Lived Intangible Assets, Accumulated Amortization	63,820	55,029
Intangible assets, net	32,543us-gaap_FiniteLivedIntangibleAssetsNet	32,549us-gaap_FiniteLivedIntangibleAssetsNet
Capitalized software costs [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	63,260	59,069
Finite-Lived Intangible Assets, Accumulated Amortization	49,072	45,075
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	26,618	23,843
Finite-Lived Intangible Assets, Accumulated Amortization	12,817	8,895
Backlog and non-compete agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,623	1,554
Finite-Lived Intangible Assets, Accumulated Amortization	1,142	630
Acquired technology [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	4,862	3,112
Finite-Lived Intangible Assets, Accumulated Amortization	$ 789	$ 429

INTANGIBLE ASSETS (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
2015	$ 8,230
2016	7,140
2017	5,764
2018	4,383
2019	3,043
2020 and thereafter	3,983
Finite-Lived Intangible Assets, Net	$ 32,543us-gaap_FiniteLivedIntangibleAssetsNet	$ 32,549us-gaap_FiniteLivedIntangibleAssetsNet

INTANGIBLE ASSETS (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 7,919us-gaap_AmortizationOfIntangibleAssets	$ 7,724us-gaap_AmortizationOfIntangibleAssets	$ 6,687us-gaap_AmortizationOfIntangibleAssets

GOODWILL (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 55,313us-gaap_Goodwill	$ 44,663us-gaap_Goodwill
Business combination	3,664mgic_BusinessCombinationGoodwill	10,043mgic_BusinessCombinationGoodwill
Classifications	(735)	430
Foreign currency translation adjustments	(2,752)us-gaap_GoodwillTranslationAdjustments	177us-gaap_GoodwillTranslationAdjustments
Goodwill, Ending Balance	55,490us-gaap_Goodwill	55,313us-gaap_Goodwill
IT Professional Services [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	28,495	18,036
Business combination	0	9,007
Classifications	0	430
Foreign currency translation adjustments	(1,906)	1,022
Goodwill, Ending Balance	26,589	28,495
Software Services [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	26,818	26,627
Business combination	3,664	1,036
Classifications	(496)	0
Foreign currency translation adjustments	(1,085)	(845)
Goodwill, Ending Balance	$ 28,901	$ 26,818

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Accrued Expenses And Other Accounts Payable [Line Items]
Employees and payroll accruals	$ 7,243	$ 6,675
Accrued expenses	5,191us-gaap_AccruedLiabilitiesCurrent	2,925us-gaap_AccruedLiabilitiesCurrent
Deferred and contingent payments related to acquisitions	170	4,167
Government authorities	1,395	2,495
Other	1,014	675
Accrued Expenses And Other Accounts Payable	$ 15,013	$ 16,937

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

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Debt Instrument [Line Items]

Other long term debt

$ 8

$ 20

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

(1,055)

Long-term Debt, Total

490

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 [Member]

Debt Instrument [Line Items]

Loans from banks

^[1]

2,904

^[1]

Israel, New Shekels [Member]

Debt Instrument [Line Items]

Loans from banks

$ 481

$ 405

[1]

LONG TERM DEBT (Details Textual) (USD $)	12 Months Ended	1 Months Ended	12 Months Ended
LONG TERM DEBT (Details Textual) (USD $)	Dec. 31, 2013	Nov. 30, 2013	Dec. 31, 2014
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment	$ 3,000,000us-gaap_DebtInstrumentPeriodicPayment
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%
US Bank [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		3,000,000
Proceeds from Lines of Credit			$ 2,800,000
Line of Credit Facility, Interest Rate Description		interest equal to the Prime Rate in effect from time to time, plus 3% per annum; provided that the interest rate in effect on any day shall not be less than 6.0% per annum

TAXES ON INCOME (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Line Items]
Domestic	$ 14,690	$ 16,165	$ 10,462
Foreign	4,183	2,266	6,092
Income before taxes on income	$ 18,873	$ 18,431	$ 16,554

TAXES ON INCOME (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current:
Domestic	$ 241us-gaap_CurrentFederalTaxExpenseBenefit	$ (1,277)us-gaap_CurrentFederalTaxExpenseBenefit	$ (1,291)us-gaap_CurrentFederalTaxExpenseBenefit
Foreign	689us-gaap_CurrentForeignTaxExpenseBenefit	781us-gaap_CurrentForeignTaxExpenseBenefit	302us-gaap_CurrentForeignTaxExpenseBenefit
Current Income Tax Expense (Benefit), Total	930us-gaap_CurrentIncomeTaxExpenseBenefit	(496)us-gaap_CurrentIncomeTaxExpenseBenefit	(989)us-gaap_CurrentIncomeTaxExpenseBenefit
Deferred taxes:
Domestic	2,575	2,673	414
Foreign	(1,198)	(602)	669
Deferred Income Tax Expense (Benefit)	1,377us-gaap_DeferredIncomeTaxExpenseBenefit	2,071us-gaap_DeferredIncomeTaxExpenseBenefit	1,083us-gaap_DeferredIncomeTaxExpenseBenefit
Taxes on income (tax benefit)	$ 2,307us-gaap_IncomeTaxExpenseBenefit	$ 1,575us-gaap_IncomeTaxExpenseBenefit	$ 94us-gaap_IncomeTaxExpenseBenefit

TAXES ON INCOME (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deferred Tax Assets [Line Items]
Net operating loss carryforwards	$ 4,627	$ 5,293
Allowances, reserves and intangible assets	1,080	1,207
Deferred tax assets before valuation allowance	5,707us-gaap_DeferredTaxAssetsGross	6,500us-gaap_DeferredTaxAssetsGross
Less - valuation allowance	(3,570)	(1,154)
Deferred tax assets	2,137us-gaap_DeferredTaxAssetsNet	5,346us-gaap_DeferredTaxAssetsNet
Capitalized software costs	0	(1,723)
Deferred tax assets	$ 2,137us-gaap_DeferredTaxAssetsLiabilitiesNet	$ 3,623us-gaap_DeferredTaxAssetsLiabilitiesNet

TAXES ON INCOME (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Line Items]
Current tax assets	$ 554us-gaap_DeferredTaxAssetsNetCurrent	$ 1,949us-gaap_DeferredTaxAssetsNetCurrent
Non-current tax assets	1,583us-gaap_DeferredTaxAssetsNetNoncurrent	1,674us-gaap_DeferredTaxAssetsNetNoncurrent
Deferred tax assets	$ 2,137us-gaap_DeferredTaxAssetsLiabilitiesNet	$ 3,623us-gaap_DeferredTaxAssetsLiabilitiesNet

TAXES ON INCOME (Details 4) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Line Items]
Current tax liabilities	$ 760us-gaap_DeferredTaxLiabilitiesCurrent	$ 2,567us-gaap_DeferredTaxLiabilitiesCurrent
Non-current tax liabilities	4,086	2,204
Net deferred tax liabilities	$ 4,846us-gaap_DeferredTaxLiabilities	$ 4,771us-gaap_DeferredTaxLiabilities

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

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Income Taxes [Line Items]

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

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

5,001

4,609

4,139

Tax adjustment in respect of different tax rates

484

444

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

236

(304)

651

Changes in valuation allowance

(2,003)

Tax benefits in respect of prior years, net

(516)

203

(1,126)

^[1]

Nondeductible expenses

Uncertain tax position and other differences

(2,576)

(3,512)

(2,031)

^[2]

Income tax (tax benefit)

$ 2,307

$ 1,575

$ 94

[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, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits	$ 498us-gaap_UnrecognizedTaxBenefits	$ 3,309us-gaap_UnrecognizedTaxBenefits	$ 3,528us-gaap_UnrecognizedTaxBenefits
Increase in tax positions taken in prior years	0	0	270
Decrease in tax positions taken in prior years	(156)	(2,811)	(489)
Gross unrecognized tax benefits	$ 342us-gaap_UnrecognizedTaxBenefits	$ 498us-gaap_UnrecognizedTaxBenefits	$ 3,309us-gaap_UnrecognizedTaxBenefits

TAXES ON INCOME (Details Textual) (USD $) In Thousands, unless otherwise specified	1 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, State and Local Income Taxes		26.50%	25.00%	25.00%
Operating Loss Carryforwards		$ 15,929us-gaap_OperatingLossCarryforwards
Effective Income Tax Rate Reconciliation Tax Withholding Percent	90.00%		20.00%
Income Tax Expense Benefit Continue Operations		156	2,811	219
Provisions Tax Reversal For Limitation Of Prior Tax			1,270
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate		26.50%	25.00%	25.00%
Cash and Cash Equivalents, at Carrying Value	35,134	72,515	35,134	37,744	28,711
Non-Israel Subsidiaries [Member]
Income Taxes [Line Items]
Cash and Cash Equivalents, at Carrying Value		21,200
Europe [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards		4,999
United States [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards		$ 427
Other Areas [Member] \| Year Two Thousand Fourteen [Member]
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, State and Local Income Taxes		16.00%

EQUITY (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding- Number of options	703,110
Granted - Number of options	155,000
Exercised - Number of options	(115,721)
Forfeited - Number of options	(3,500)
Outstanding- Number of options	738,889	703,110
Exercisable - Number of options	448,639
Vested and expected to vest - Number of options	738,889
Outstanding - Weighted average exercise price	$ 3.16
Granted - Weighted average exercise price	$ 7.47
Exercised - Weighted average exercise price	$ 1.86
Forfeited - Weighted average exercise price	$ 4.00
Outstanding - Weighted average exercise price	$ 4.26	$ 3.16
Exercisable - Weighted average exercise price	$ 2.95
Vested and expected to vest - Weighted average exercise price	$ 4.26
Outstanding - Weighted average remaining contractual term (in years)	6 years 5 months 1 day	6 years 8 months 5 days
Exercisable - Weighted average remaining contractual term (in years)	5 years 11 days
Vested and expected to vest - Weighted average remaining contractual term (in years)	6 years 5 months 1 day
Outstanding - Aggregate intrinsic value	$ 2,298
Outstanding - Aggregate intrinsic value	1,248	2,298
Exercisable - Aggregate intrinsic value	1,348
Vested and expected to vest - Aggregate intrinsic value	$ 1,248

EQUITY (Details 1) (USD $)	12 Months Ended
EQUITY (Details 1) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	738,889	703,110
Weighted average remaining contractual Life (years)	6 years 5 months 1 day	6 years 8 months 5 days
Weighted average exercise price	$ 4.26	$ 3.16
Options exercisable	448,639
Weighted averageexercise price of exercisable	$ 2.95
Exercise Price One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	4,000
Weighted average remaining contractual Life (years)	4 years 2 months 26 days
Weighted average exercise price	$ 0
Options exercisable	4,000
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]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	69,200
Weighted average remaining contractual Life (years)	1 year 10 months 6 days
Weighted average exercise price	$ 1.20
Options exercisable	69,200
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]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	173,667
Weighted average remaining contractual Life (years)	4 years 9 months 18 days
Weighted average exercise price	$ 2.30
Options exercisable	173,667
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]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	252,022
Weighted average remaining contractual Life (years)	6 years 1 month 13 days
Weighted average exercise price	$ 3.96
Options exercisable	180,522
Weighted averageexercise price of exercisable	$ 3.95
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]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	0
Weighted average remaining contractual Life (years)	0 years
Weighted average exercise price	$ 0
Options exercisable	0
Weighted averageexercise price of exercisable	$ 0
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]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	85,000
Weighted average remaining contractual Life (years)	8 years 7 months 10 days
Weighted average exercise price	$ 6.00
Options exercisable	21,250
Weighted averageexercise price of exercisable	$ 6.00
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
Exercise Price Seven [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	75,000
Weighted average remaining contractual Life (years)	9 years 10 months 13 days
Weighted average exercise price	$ 6.89
Options exercisable	0
Weighted averageexercise price of exercisable	$ 0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 6.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 7
Exercise Price Eight [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	0
Weighted average remaining contractual Life (years)	0 years
Weighted average exercise price	$ 0
Options exercisable	0
Weighted averageexercise price of exercisable	$ 0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 7.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 8
Exercise Price Nine [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	80,000
Weighted average remaining contractual Life (years)	9 years 4 months 10 days
Weighted average exercise price	$ 8.01
Options exercisable	0
Weighted averageexercise price of exercisable	$ 0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 8.01
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 9

EQUITY (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accumulated realized and unrealized gain on available-for-sale securities, net	$ (121)	$ 138	$ 173
Accumulated foreign currency translation adjustments	(5,243)	(327)	(776)
Accumulated unrealized gain (loss) on derivative instruments, net	17	17	17
Total other comprehensive income	$ (5,347)	$ (172)	$ (586)

EQUITY (Details Textual) In Thousands, except Share data, unless otherwise specified	0 Months Ended	1 Months Ended	12 Months Ended											12 Months Ended
	Sep. 04, 2012	Nov. 30, 2014 ILS	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2010 USD ($)	Aug. 19, 2014 USD ($)	Feb. 18, 2014 USD ($)	Aug. 12, 2013 USD ($)	Feb. 14, 2013 USD ($)	Sep. 10, 2012 USD ($)	Dec. 23, 2010 USD ($)	Feb. 04, 2015 Subsequent Event [Member] USD ($)	Dec. 31, 2014 Payment One [Member]	Dec. 31, 2014 Payment Two [Member]	Dec. 31, 2013 Payment Three [Member]	Dec. 31, 2013 Payment Four [Member]	Dec. 31, 2013 Payment Five [Member]	Dec. 31, 2007 2007 Plan [Member]	Dec. 31, 2014 2007 Plan [Member] Minimum [Member]	Dec. 31, 2014 2007 Plan [Member] Maximum [Member]	Dec. 31, 2010 Common Stock [Member] USD ($)
Class of Stock [Line Items]
Issuance of Ordinary shares and warrants (net of issuance expenses $ 1,080) (in shares)																						3,287,616
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			1,001,563
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		1,167																	1,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 3.76	$ 6	$ 4
Exercised - Aggregate intrinsic value			$ 741	$ 529	$ 572
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options			646
Dividends Payable, Amount Per Share							$ 0.095us-gaap_DividendsPayableAmountPerShare	$ 0.12us-gaap_DividendsPayableAmountPerShare	$ 0.09us-gaap_DividendsPayableAmountPerShare	$ 0.12us-gaap_DividendsPayableAmountPerShare	$ 0.10us-gaap_DividendsPayableAmountPerShare		$ 0.081
Issuance of Ordinary shares						20,290us-gaap_PaymentsOfStockIssuanceCosts
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		4 years																		3 years	4 years
Dividends Payable							4,195	4,468	3,390	4,397	3,661		3,582
Dividends Payable, Date to be Paid														Oct. 17, 2012	Mar. 14, 2013	Sep. 03, 2013	Mar. 14, 2014	Sep. 04, 2014
Dividend Distribution Maximum Percentage	50.00%		50.00%		50.00%
Shares Issued, Price Per Share																						$ 6.5
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value		5,000
Share-based Compensation Arrangement By Share-based Payment Award Options Nonvested Grant Date Fair Value		5,910
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price		1

SELECTED STATEMENTS OF INCOME DATA (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Research and Development Expense [Line Items]
Total costs	$ 9,017mgic_ResearchAndDevelopmentExpenseGross	$ 8,419mgic_ResearchAndDevelopmentExpenseGross	$ 7,916mgic_ResearchAndDevelopmentExpenseGross
Less - capitalized software costs	(4,267)	(4,713)	(4,969)
Research and development, net	$ 4,750us-gaap_ResearchAndDevelopmentExpense	$ 3,706us-gaap_ResearchAndDevelopmentExpense	$ 2,947us-gaap_ResearchAndDevelopmentExpense

SELECTED STATEMENTS OF INCOME DATA (Details1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Other Nonoperating Income Expense [Line Items]
Interest income net of bank charges	$ (156)us-gaap_InterestIncomeExpenseNet	$ (170)us-gaap_InterestIncomeExpenseNet	$ 20us-gaap_InterestIncomeExpenseNet
Interest expenses related to liabilities in connection with acquisitions	(152)	(407)	(48)
Interest income from debt instruments	91mgic_InterestIncomeFromDebtInstruments	46mgic_InterestIncomeFromDebtInstruments	49mgic_InterestIncomeFromDebtInstruments
Loss arising from foreign currency translation and other	(1,569)	(153)	(11)
Financial income(expenses), net	$ (1,786)us-gaap_NonoperatingGainsLosses	$ (684)us-gaap_NonoperatingGainsLosses	$ 10us-gaap_NonoperatingGainsLosses

COMMITMENTS AND CONTINGENCIES (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Operating Leased Assets [Line Items]
2015	$ 1,798
2016	773
2017	578
2018 and thereafter	583
Operating Leases, Future Minimum Payments Due	$ 3,732

COMMITMENTS AND CONTINGENCIES (Details Textual)	1 Months Ended		12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Textual)	Aug. 31, 2009 USD ($)	Aug. 31, 2009 ILS	Dec. 31, 2014 USD ($) sqft	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2014 New Israeli Shekel [Member] USD ($)
Loss Contingencies [Line Items]
Operating Leases, Rent Expense			$ 1,736,000us-gaap_LeaseAndRentalExpense	$ 1,911,000us-gaap_LeaseAndRentalExpense	$ 1,701,000us-gaap_LeaseAndRentalExpense
Lease Agreement Maximum Penalties Amount			147,000
Guarantee Obligations Total						295,000
Loss Contingency, Damages Sought, Value	15,000,000	52,000,000
Lease Commitment Description			amount of lease commitment for the next 6 months in Israel and India mentioned above is approximately $259
Area of Land			59,546us-gaap_AreaOfLand
Net Impact On Results Of Operation	$ 1,600,000mgic_NetImpactOnResultsOfOperation

NET EARNINGS PER SHARE (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Line Items]
Numerator for basic and diluted earnings per share - net income available to Magic shareholders	$ 15,520us-gaap_NetIncomeLoss	$ 15,880us-gaap_NetIncomeLoss	$ 16,183us-gaap_NetIncomeLoss
Weighted average ordinary shares outstanding:
Denominator for basic net earnings per share	43,287,523	36,835,163	36,502,264
Effect of dilutive securities	17,291	458,753	605,406
Denominator for diluted net earnings per share	43,304,814	37,293,916	37,107,670
Basic and diluted earnings per share (in dollars per share)	$ 0.36us-gaap_EarningsPerShareBasicAndDiluted	$ 0.43us-gaap_EarningsPerShareBasicAndDiluted	$ 0.44us-gaap_EarningsPerShareBasicAndDiluted

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Total revenues	$ 164,304us-gaap_SalesRevenueNet	$ 144,958us-gaap_SalesRevenueNet	$ 126,380us-gaap_SalesRevenueNet
Expenses	143,578us-gaap_OtherGeneralExpense	125,831us-gaap_OtherGeneralExpense	109,972us-gaap_OtherGeneralExpense
Segment operating income (loss)	20,726us-gaap_OperatingIncomeLoss	19,127us-gaap_OperatingIncomeLoss	16,408us-gaap_OperatingIncomeLoss
Depreciation and amortization	8,594	8,380	7,463
Software Services [Member]
Segment Reporting Information [Line Items]
Total revenues	69,861	67,453	65,410
Expenses	54,464	53,164	50,497
Segment operating income (loss)	15,397	14,289	14,913
Depreciation and amortization	6,065	5,917	5,937
IT Professional Services [Member]
Segment Reporting Information [Line Items]
Total revenues	94,443	77,505	60,970
Expenses	84,873	68,846	55,456
Segment operating income (loss)	9,570	8,659	5,514
Depreciation and amortization	2,263	2,210	1,182
Unallocated Expense [Member]
Segment Reporting Information [Line Items]
Total revenues	0	0	0
Expenses	4,241	3,821	4,019
Segment operating income (loss)	(4,241)	(3,821)	(4,019)
Depreciation and amortization	$ 266	$ 253	$ 344

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenue, Major Customer [Line Items]
Total revenues	$ 164,304us-gaap_SalesRevenueNet	$ 144,958us-gaap_SalesRevenueNet	$ 126,380us-gaap_SalesRevenueNet
Israel [Member]
Revenue, Major Customer [Line Items]
Total revenues	29,198	24,006	11,561
Europe [Member]
Revenue, Major Customer [Line Items]
Total revenues	37,409	31,386	29,139
United States [Member]
Revenue, Major Customer [Line Items]
Total revenues	78,606	70,872	64,591
Japan [Member]
Revenue, Major Customer [Line Items]
Total revenues	11,299	11,965	12,661
Other [Member]
Revenue, Major Customer [Line Items]
Total revenues	$ 3,927	$ 6,729	$ 8,428

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 90,039us-gaap_NoncurrentAssets	$ 89,634us-gaap_NoncurrentAssets
Israel [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	58,263	54,656
Europe [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	1,523	3,117
United States [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	22,174	23,287
Japan [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	4,786	5,180
Others [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 3,291	$ 3,395

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details Textual)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	10.00%us-gaap_ConcentrationRiskPercentage1	13.00%us-gaap_ConcentrationRiskPercentage1	19.00%us-gaap_ConcentrationRiskPercentage1

SUBSEQUENT EVENTS (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	Aug. 19, 2014	Feb. 18, 2014	Aug. 12, 2013	Feb. 14, 2013	Sep. 10, 2012	Feb. 25, 2015	Feb. 04, 2015
Subsequent Event [Line Items]
Dividends Payable, Amount Per Share	$ 0.095us-gaap_DividendsPayableAmountPerShare	$ 0.12us-gaap_DividendsPayableAmountPerShare	$ 0.09us-gaap_DividendsPayableAmountPerShare	$ 0.12us-gaap_DividendsPayableAmountPerShare	$ 0.10us-gaap_DividendsPayableAmountPerShare
Dividends Payable	$ 4,195	$ 4,468	$ 3,390	$ 4,397	$ 3,661
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends Payable, Amount Per Share							$ 0.081
Dividends Payable							$ 3,582
Business Acquisition, Percentage of Voting Interests Acquired						70.00%
Business Acquisition Percentage Of Definitive Agreement						100.00%