According to a Grand View Research report published this month, the global low code application development platform market size is expected to grow at 23% CAGR to $86.92 billion by 2027. Israel-based Magic Software Enterprises (Nasdaq: MGIC) is benefiting from this high growth forecast.

Magic Software’s Offerings

Magic Software Enterprises was set up in 1983 by David Assia and Yaki Dunietz. More than 30 years ago, the company had released its first offering that allowed organizations to develop business apps. Since then, Magic has developed smart technology solutions that help publish core business applications using a metadata-driven approach.

Today, Magic Software’s platforms provide a productive environment for streamlined development and deployment and effective integration of core business applications, supporting scalable deployment on multiple channels, including on-premise, Web (HTML5), Internet, mobile, and SaaS. Its metadata-driven approach allows it to deliver products and services that can be deployed with minimal effort, while making the best use of existing assets. Magic Software is present in more than 50 countries and boasts of multiple strategic alliances with global IT leaders including IBM, Microsoft, Oracle, Salesforce.com, and SAP.

Magic Software has an active partner program that it leverages to drive growth. Partners get access to the assets needed to promote Magic’s integration solutions that help drive Business Process Automation and Digital Transformation. It offers its partner program to System Integrators and Value Added Resellers, Value Added Distributors, ISVs, OEMs, Consultants, and Referral Vendors.

Magic Software Enterprises’ Financials

For the quarter, Magic Software’s revenues grew 12.3% over the year to $86.5 million, surpassing the market’s estimates of $84 million. An EPS of $0.17 surpassed the market’s estimates of $0.15.

Magic Software did not provide estimates. But the market expects it to deliver $87.15 million in revenues for the quarter with an EPS of $0.15 and revenues of $348.6 million for the year with an EPS of $0.65.

Magic Software’s Acquisitions

Earlier this year, Magic Software announced the acquisition of Netherlands-based companies Magic-Hands BV and Knowledge & Solutions Software BV. Privately held Magic-Hands develops tailor-made IT solutions for small and medium-sized companies and has been a long-term user of Magic Software. Its product Magic4Business is a finance and billing solution for various companies in the region. Similarly, Magic4Trade is a solution for supply chain businesses and custom-made software solutions.

Knowledge & Solutions Software is another technology player known for its product Promis, which helps organizations with the establishment, management, and monitoring of all processes. Promis drives higher performance and yield by improving the overall flow and the relationship of employees with end customers.

Magic Software plans to leverage the acquired entity’s team’s development, management, and delivery capabilities to expand within Europe. The terms of the acquisitions were not disclosed.

Its stock is trading at $12.80 with a market capitalization of $603.6 million. It had climbed a 52-week high of $16.87 in August. In March this year, the stock had fallen to a 52-week low of $6.31 due to the crisis.