Key Takeaways:
Formula Systems (1985) Ltd. (Nasdaq: FORTY) will distribute a special cash dividend of $13.045 per share, totaling approximately $200 million, following strong 2025 financial results and the completion of a key portfolio transaction.
"This dividend distribution to Formula’s shareholders underscores our company’s financial performance and our unwavering confidence in our strategic execution,” Guy Bernstein, CEO of Formula Systems, said. "We remain confident that strong performance across our investment portfolio will continue to drive accretive growth and provide significant cash generation."
The dividend will be paid on June 4, 2026, to shareholders of record at the close of trading on May 25, 2026. The payment is subject to Israeli withholding tax, typically at a rate of 25 percent or 30 percent, depending on the shareholder's holding status.
The board's decision was influenced by the company's liquidity and capital needs, particularly after the acquisition of Sapiens by Advent. The move is designed to reward the company's long-standing shareholders for their loyalty and support. Formula Systems is a global information technology holding company that provides software consulting, business solutions, and develops proprietary software products.
The large special dividend highlights the company's robust cash position and management's confidence in future performance. Investors will watch for continued growth from the company's investment portfolio in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
