WeSure completes acquisition of Ayalon insurance group

Emil Vainshel, Yohanan Danino,and  Nitzan Zeir-Harim, Wesure  credit: Rami Zarnegar
Emil Vainshel, Yohanan Danino,and Nitzan Zeir-Harim, Wesure credit: Rami Zarnegar

Insurtech company WeSure Global Tech bought 67% of Ayalon Holdings for NIS 447.6 million.

A year after the original deal was signed between digital insurance company WeSure Global Tech (TASE: WESR) and the trustee of the estate of Ayalon Holdings (TASE: AYAL) founder Levi Yitzhak Rachmani, the acquisition of Ayalon Holdings by WeSure was completed last Thursday. WeSure has bought 67% of the shares in insurance group Ayalon Holdings from the estate for NIS 447.6 million. WeSure also reported a financing agreement with "a leading banking corporation" for a loan of NIS 90 million to complete the deal. The loan is for five years at an annual interest rate pf prime plus 2.5%, extendable at the company’s option for a further three years. The original acquisition price was reduced by NIS 15 million because of the decline in Ayalon’s share price since the agreement was signed.

<p>At the same time, Caesarea Medical Electronics completed a NIS 260 million investment in WeSure Global Tech. Here too, there was an adjustment to the amount of the deal, of NIS 10 million. It results in Caesarea Medical Electronics founders Zvi and Anat Barak becoming part of the controlling interest in WeSure Global Tech and Ayalon Holdings together with WeSure founders Emil Vainshel and Nitzan Zeir-Harim.

<p>In addition, the investment of the Ben-Yishai family in Wesure Global Tech was completed. The three members of the family bought 3.7% of the company for NIS 20 million, at a share price of NIS 6.3, the same as in the agreement with Caesarea Medical Electronics, and representing a 200% premium on WeSure’s market price.

<p>After the purchase of control in Ayalon Holdings, the WeSure Global Tech group has a prominent position in the Israeli insurance market, with gross premiums estimated at NIS 3.5 billion annually, from a wide ranging insurance business. The group will have over NIS 17 billion in assets under management.

<p>"WeSure intends to maximize the synergy between the companies, as part of which it will upgrade Ayalon’s technological capabilities, among other things in order to continue to grow and to improve the business results of the two companies," WeSure said in its announcement. "At the same time, the acquisition of Ayalon will enable WeSure to penetrate rapidly new parts of the insurance industry, and could be a basis for further development of these activities in international markets, in accordance with the company’s strategy of expanding its activity overseas."

<p>Ayalon Insurance CEO Sharon Reich said, "Ayalon welcomes the new owners. We are confident that this deal, which brings with it many strategic advantages, will lead to actions that will be reflected in enhanced business results and in the company’s prosperity."

<p>WeSure chairperson Yohanan Danino said, "Ayalon will be integrate naturally and dynamically into our general business strategy in the coming years, and will be an important factor in WeSure Global Tech making a quantum leap."

<p><i>Published by Globes, Israel business news - <a href="https://en.globes.co.il">en.globes.co.il</a> - on July 3, 2022.</i></p>

<p><i>© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.</i></p>

Emil Vainshel, Yohanan Danino,and  Nitzan Zeir-Harim, Wesure  credit: Rami Zarnegar
Emil Vainshel, Yohanan Danino,and Nitzan Zeir-Harim, Wesure credit: Rami Zarnegar
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