Isracard terminated its bid for Esh Bank, ending a transaction that valued the digital lender at up to NIS 500m amid failed negotiations.
Isracard (ISCD) has abandoned its plan to acquire Israeli digital lender Esh Bank after failing to finalize a binding agreement. The company confirmed in a filing that the memorandum of understanding with Esh Bank lapsed without a deal and will not be renewed, ending a transaction valued at up to NIS 500m ($81.9m initially, with potential additional payments).
The proposed acquisition, announced in March, aimed to position Isracard for direct banking operations ahead of regulatory reforms expected next year. Isracard, controlled by Delek Group, was set to pay NIS 250m upfront, followed by NIS 150m later, with an extra NIS 100m contingent on meeting certain conditions.
Esh Bank, which launched last September, will continue operating independently. The lender, led by CEO Kobi Malkin and chaired by Shmuel Hauser, has built its own banking platform and targets a model where half its income comes from non-traditional sources.