Formula Software Services emerged in 1980, established by Dan Goldstein while he was authoring a doctoral thesis on distributed networks. Over the subsequent decades, he built this initial operation into a sprawling, multi-billion-dollar corporate hierarchy, effectively shaping the technological landscape of Israel through aggressive acquisitions and the consolidation of software, communications, and billing firms.
Early Career and Software Foundation
Born in Bucharest in 1954, Goldstein arrived in Israel in 1960. He pursued higher education at Tel Aviv University, obtaining a BA in computer science and mathematics, an MA in business administration, and pursuing a PhD in mathematics. In 1985, he formally incorporated Formula Systems (1985) Ltd. as a holding entity for his expanding portfolio of software products, services, and consulting. During the late 1980s, he grew the group by acquiring public companies like Eichut Computers and Idan Inc., positioning them within the nascent Israeli communications market.
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Throughout the 1990s, Goldstein acquired specialized firms including Formula Telecom Solutions (FTS), Formula Insurance Solutions (FIS), and Formula Retail Solutions (FRS). He was an active participant in venture capital, founding Foraz and Formula Ventures, and eventually acquiring Liraz. By 1998, he took control of the Mashov Group, adding Magic Software Enterprises and Walla! Communications to his holdings. At the peak of the dot-com era, the Formula Group exceeded a valuation of one billion dollars, prompting a significant secondary offering for Magic Software on the Nasdaq in February 2000.
Corporate Reorganization
Following the collapse of the technology bubble, Goldstein simplified his complex corporate structure. He consolidated assets into three core holdings: Matrix, Magic Software Enterprises, and Formula Vision. In 2004, he partnered with the FIMI opportunity fund, led by Ishay Davidi, to form Fimgold. This partnership managed the group until 2006, when Guy Bernstein of Emblaze acquired Formula. This transaction ended Goldstein’s 25-year tenure leading the group, after which he focused his efforts on Formula Vision.
Public Service and Legacy
Beyond his entrepreneurial roles, Goldstein served as the Chairman of the Public Companies Association in Israel starting in 2000. In this capacity, he influenced public debate and legislation regarding corporate governance, financial regulation, and reporting standards. Goldstein passed away in 2022 at the age of 68, leaving behind a legacy defined by his impact on Israel's software infrastructure and his influence on the country's public corporate practices.
Fast facts
- Born: 1954, Bucharest
- Died: 2022
- Education: Tel Aviv University
- Founder: Formula Systems
- Chairman: Public Companies Association in Israel
- Citizenship: Romania, Israel
- Languages: Romanian
Questions readers ask
What companies did Dan Goldstein establish?
He founded Formula Software Services, Formula Systems (1985) Ltd., Foraz, and Formula Ventures.
When did Goldstein leave Formula Systems?
He parted from the company in 2006 after its acquisition by Emblaze.
Achievements
- Educated at Tel Aviv University
