Bank Leumi has agreed to sell Leumi Card to Warburg Pincus for 2.5 billion shekels, with additional potential earnings tied to the company's future performance.

Information on the Target

Bank Leumi has reached an agreement to sell Leumi Card to Warburg Pincus, an investment firm, in conjunction with the Azrieli Group. The total consideration for the acquisition amounts to 2.5 billion shekels, which will be paid in three installments: the first upon the completion of the transaction, the second at the end of one year, and the third at the end of two years. The transaction is subject to regulatory approvals and includes conditions that could lead to additional payments of up to 273 million shekels, contingent upon Leumi Card's performance surpassing the presented business model.

Industry Overview in Israel

The payments, credit, and financing sectors in Israel are experiencing significant growth, driven by technological advancements and increasing consumer demand for innovative financial services. The market for small and medium-sized business financing is particularly promising, as more entrepreneurs seek accessible credit solutions to support their operations and expansion efforts. This provides ample opportunity for companies like Leumi Card to enhance their service offerings and reach more customers.

Israel's banking sector is currently undergoing a transformation aimed at increasing competition and reducing market concentration. This is partly reflected in the regulatory framework that requires banks to dive