WeSure GlobalTech Acquires Control of Altshuler Shaham Pension Firm

WeSure GlobalTech, controlled by Emil Vinnish and Zvi Barak, announced its acquisition of controlling interest in the pension and provident fund company Altshuler Shaham Financials. The deal, valued at NIS 1 billion, is expected to be finalized by the end of the week, before the Yom Kippur holiday.

Under the agreement, WeSure will hold 45% of the company's shares, while Yair Levinstein, CEO of Altshuler Shaham, will increase his stake to 25%. Levinstein will purchase shares worth NIS 180 million, and WeSure will invest NIS 820 million.

The transaction's origins trace back over a year to a proposed merger between the private investment house activities of Gilad Altshuler and Kalman Shaham with the provident fund operations of Levinstein's public company. This merger was intended to resolve issues preventing provident fund members from being directed to the investment house's mutual and hedge funds due to conflicts of interest.

Initial negotiations faltered as Altshuler and Shaham, and Levinstein could not agree on the valuation of the investment house or the management authorities within the merged entity. Following the breakdown, the three partners faced three options: Altshuler and Shaham buying out Levinstein, Levinstein buying them out, or all three selling their stakes.

Levinstein opted to seek a strong financial partner, exploring options with several industry figures before connecting with Emil Vinnish and WeSure approximately two weeks ago. Vinnish's proposed synergies with Ayalon, his belief in revitalizing the brand, and the strong relationships with insurance agents were key factors in Levinstein's decision. Vinnish also agreed to step into the shoes of Altshuler and Shaham in the joint control agreement, facilitating the process.

While the negotiations between Levinstein and Vinnish were relatively smooth, discussions with Shaham and Altshuler encountered difficulties, particularly concerning future non-competition clauses between the investment house and the provident fund company. Although Altshuler was more amenable to the sale, Ran Shaham, the younger partner, found it harder to part with his stake but ultimately agreed, likely influenced by his father's position as the largest shareholder. Challenges remain, including the relationship dynamics between the strong personalities of Vinnish and Levinstein, securing support from insurance agents, and Levinstein's ability to drive improved returns for the company.