Waze Co-Founder Assaf Rappaport Explores Acquiring Credit Card Firm Cal

Assaf Rappaport, a co-founder of the navigation app Waze, along with his former Waze partners Yinon Costica, Ami Lutvak, and Roi Reznik, are reportedly exploring the possibility of acquiring Cal, a credit card company controlled by Discount Bank. Sources indicate that representatives from Rappaport's group have inquired about the company's details and potential deal structures. The investigation is in its early stages, with one avenue being to join a larger investor group to lead the acquisition and meet regulatory requirements.

Rappaport and his partners previously founded Adallom, a cloud security firm, in 2012, which was acquired by Microsoft in 2015 for a reported $320 million. After Waze's record-breaking $32 billion sale to Google in 2021, Rappaport has shifted from building companies to acquiring existing businesses. Cal, which issues cards, processes transactions, and provides credit, is a departure from his tech background, operating in the financial services sector.

Discount Bank is required to divest its controlling stake in Cal as part of a regulatory reform in the credit market. The bank holds 72% of Cal's shares, with the remaining 28% owned by International Bank. An earlier deal with investor George Horesh and Harel Insurance, valuing Cal at NIS 3.7 billion, stalled due to antitrust concerns related to Union Bank's holdings and Cal's operations with Shufersal. American investment funds Greylock Point and Centerbridge have since entered the picture, and Horesh's group is working on a new proposal. Discount Bank is also considering a new tender or a stock exchange listing for Cal.

Rappaport is not the only interested party. Other potential bidders include the Shnidman family's Insurance Direct group, Jerusalem Bank, and investment funds. Gil Agmon's Delek Motors is also in preliminary talks to acquire 50%-55% of Cal for an estimated company valuation of NIS 3-3.5 billion. Cal manages approximately 5.1 million active cards, with transaction volumes reaching NIS 209 billion and its credit portfolio at NIS 10.5 billion in 2025. Acquiring a financial institution like Cal requires regulatory approval from the Bank of Israel and the Antitrust Authority, including checks on the owners' suitability and financial stability.

This potential acquisition of Cal follows Rappaport's recent involvement in acquiring a controlling stake in Channel 13 through the Merit fund, with a commitment of $120 million over three years. His group is also in discussions for the McDonald's franchise in Israel, which generated an estimated NIS 1.7 billion in sales from 235 branches in 2025. Rappaport's ventures into media, fast food, and financial services signal a strategic shift towards managing and improving established businesses, rather than solely founding new tech companies.