Wyshuar GlobalTech Nears Deal to Acquire Control of Altshuler Shaham

Wyshuar GlobalTech is reportedly advancing in negotiations to acquire controlling interest in Altshuler Shaham Finances, in partnership with CEO Yair Levinstein. The proposed deal outlines the acquisition of approximately 55% of the publicly traded company from founders Gilad Altshuler and Kalman Shaham for about 1 billion shekels, valuing the firm at roughly 1.8 billion shekels.

Wyshuar, controlled by Emil Vinshel and Zvi Barak, plans to invest around 820 million shekels for a 45% stake. This move would significantly expand Wyshuar's operations, adding Altshuler Shaham's long-term savings business to its existing insurance activities through its subsidiary, Ayalon Insurance. Levinstein is expected to invest an additional 180 million shekels, increasing his current stake from about 15% to 25% and becoming a partner in control. Together, Wyshuar and Levinstein would hold approximately 70% of the company, including Levinstein's existing shares.

The transaction is still in the negotiation phase, with parties aiming for a signing by the end of the week. Final agreement details and control arrangements have not yet been disclosed. If completed, Altshuler Shaham Finances and Ayalon Insurance would become sister companies under Wyshuar's umbrella. The acquisition would focus on the parent company, positioning Wyshuar to manage both insurance and provident/pension fund activities, along with other financial services.

This potential acquisition represents a major strategic move for Wyshuar, which acquired Ayalon Insurance in June 2022 for approximately 448 million shekels. The current proposed investment in Altshuler Shaham is nearly double that previous acquisition cost. By acquiring Altshuler Shaham, Wyshuar aims to bypass years of organic growth in the long-term savings sector, gaining immediate access to a broad customer base, operational systems, agent networks, and a recognized brand. This could enhance Wyshuar's product range and distribution channels, potentially leading to cost savings and improved efficiency.

The future of Ayalon's recently launched provident fund activity remains undecided; it could operate in parallel with Altshuler Shaham or be integrated later. The deal's financing structure, whether through debt, new equity, or a combination, is a key consideration and has yet to be presented. For the selling founders, the deal signifies a separation of their public company holdings from their private investment house, which retains mutual funds, portfolio management, and other services. Levinstein's decision to increase his investment suggests confidence in the company's future under the new partnership, though the ultimate success will depend on effective integration and retention of clients and agents.