Isracard Abandons Acquisition of Nir Tzuk’s Digital Bank esh

Isracard has decided not to proceed with acquiring the digital bank esh, owned by Nir Tzuk, after months of negotiations and due diligence. The company announced that the memorandum of understanding between the parties expired without extension, and no binding agreements were signed. The potential deal was first reported in May last year, involving talks between businessman Yitzhak Tshuva and Nir Tzuk. In August 2025, Tshuva’s Delek Group completed its acquisition of Isracard, which advanced the discussions to purchase esh.

According to a plan revealed in March, Isracard was set to buy esh at a valuation of 400 million shekels through a two-stage cash and stock transaction. Additionally, Isracard was to invest 40 million dollars to acquire 25% of esh’s technology company. Although esh has officially launched, it currently operates on a limited scale with a small customer base. Existing shareholders, led by controlling owner Nir Tzuk (13.2%), co-founder and CEO Yuval Aloni (17.9%), and Clal Insurance (11%), were to receive Isracard shares worth 400 million shekels, with an initial allocation of 250 million shekels and the remainder contingent on meeting certain conditions.

Isracard, owned by Tshuva’s Delek Group, would have become a direct competitor to Amnon Shashua’s digital-only bank, which operates without branches. The acquisition attempt was influenced by the "thin banks" reform, allowing credit card companies and other financial entities to offer customer deposits under relatively lenient capital requirements. This reform has passed the ministerial committee for legislative amendments and awaits Knesset approval.