Magic Announces Distribution of Cash Dividend for Second Half of 2016
Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that in compliance with its semi-annual dividend distribution policy, its Board of Directors has declared a cash dividend in the amount of US $0.085 per share and approximately US $3.8 million in the aggregate for the second half of 2016.
The dividend is payable on April 5, 2017 to all of the Company’s shareholders of record at the close of the NASDAQ Global Select Market on March 20, 2017. In determining the dividend amount, the company’s Board of Directors determined to exclude the impact of the increase recorded in contingent consideration related to acquisitions and an increase in the value of put options related to redeemable non-controlling interests, both non-cash items. These items had a negative impact to net income of approximately US $3.1 million (US $0.07 per share on a fully diluted basis) in the fourth quarter and year ended December 31, 2016.
In accordance with Israeli tax law, the dividend is subject to withholding at source at the rate of 30% (if the recipient of the dividend is at the time of distribution was or at any time during the preceding 12-month period the holder of 10% or more of the Company's share capital) or 25% (for all other dividend recipients) of the dividend amount payable to each shareholder of record, subject to applicable exemptions.
The dividend will be paid in US dollars on the ordinary shares of Magic Software Enterprises that are traded both on the Tel Aviv Stock Exchange and the NASDAQ Global Select Market.
About Magic Software Enterprises
Magic Software Enterprises (NASDAQ: MGIC) empowers customers and partners around the globe with smarter technology that provides a multichannel user experience of enterprise logic and data.
For more information, visit www.magicsoftware.com.
Amit Birk | VP M&A and General Counsel
Magic Software Enterprises