WeSure acquires control of about 50% in the Ayalon Holdings Group at a value of NIS 700 million

WeSure GlobalTech reported the signing of an agreement to acquire control (approximately 50.44%) in the Ayalon Holdings Group from Adv. Moran Meiri, the estate manager of the late Levi Yitzhak Rahmani, the former controlling shareholder in the company.
WeSure, which signed the deal with Ayalon on Friday, will pay NIS 354.5 million for the shares - that is, the deal was made at a value of NIS 700 million, while on the stock exchange Ayalon is traded at a value of NIS 500 million.

WeSure indicates that they have several options for financing the transaction, and that they are currently examining the best financing alternatives available to the company. This, without taking into account the amounts of money accumulated in the fund after its issuance on the stock exchange this year. In addition, there are quite a few companies that will be happy to fund Insure-Tech activities in the current period. So financing the deal is not likely to be a problem.

According to Emil Winshel, one of the founders and controlling shareholders of WeSure GlobalTech, the move is intended to position Vishor as a leading insurance company in the Israeli market. "Ahead of our entry into the global insurance market, we decided to make another significant strategic move: the acquisition of the Ayalon Group's core controlling group - the sixth largest insurance group in the Israeli market.

WeSure GlobalTech reported the signing of an agreement to acquire control (approximately 50.44%) in the Ayalon Holdings Group from Adv. Moran Meiri, the estate manager of the late Levi Yitzhak Rahmani, the former controlling shareholder in the company.

WeSure, which signed the deal with Ayalon on Friday, will pay NIS 354.5 million for the shares - that is, the deal was made at a value of NIS 700 million, while on the stock exchange Ayalon is traded at a value of NIS 500 million.
The transaction is subject to the fulfillment of conditions precedent and approvals, including the approval of the Competition Commissioner and the approval of the Capital Market, Insurance and Savings Commissioner.
The administrator of the estate holds additional shares of Ayalon, which constitute approximately 16.5% of the company's capital, and he may announce by August 1, 2021, that these shares or some of them will be sold to GlobalTech on the date of completion of the transaction, for an additional NIS 118.2 million. If this move is implemented in full, the company will purchase a total of approximately 66.5% of Ayalon shares for a total monetary consideration of approximately NIS 472.7 million.

Vishur indicates that they have several options for financing the transaction, and that they are currently examining the best financing alternatives available to the company. This, without taking into account the amounts of money accumulated in the fund after its issuance on the stock exchange this year. In addition, there are quite a few companies that will be happy to fund Insure-Tech activities in the current period. So financing the deal is not likely to be a problem.

According to Emil Winshel, one of the founders and controlling shareholders of Vishor GlobalTech, the move is intended to position Vishor as a leading insurance company in the Israeli market. "Ahead of our entry into the global insurance market, we decided to make another significant strategic move: the acquisition of the Ayalon Group's core controlling group - the sixth largest insurance group in the Israeli market.

"We see the deal as a potential for great synergy, as Ayalon's joining the GlobalTech alignment group will accelerate the digitization processes in the traditional world in which Ayalon operates, while at the same time, the acquisition of Ayalon will allow alignment to quickly penetrate insurance industries in new areas. These are by aligning GlobalTech in the international markets, in line with the company's strategy to expand its operations to the US and Europe over the coming years, ”Winshel said.

The acquisition of Ayalon Insurance Group by WeSure was carried out quickly, due in part to the in-depth knowledge of WeSure founder Emile Winshel, who served as Ayalon's CEO in 2016-2011. The digital transformation in all areas of insurance in the local market, including through the technological infrastructure of alignment, the knowledge and experience accumulated in its ranks.

The acquisition of Ayalon puts WeSure GlobalTech into the areas of long-term savings and health, and the connection between the two companies may maximize the benefits of each of them and lead to significant Wesure growth. In fact, the deal puts alignment on the pitch of the greats when it has arms in all branches of insurance.

The real test of Vishur will be in adapting its advanced computer systems into Ayalon - a move that will bounce Ayalon's computing level a few generations ahead. In the first phase, WeSure intends to preserve Ayalon's operations as they are, but to focus on upgrading Ayalon's technological and digital capabilities - among other things in order to continue to grow and improve the business results of the group of companies, while improving efficiency, advanced use of information and data for more advanced underwriting. As well as improving service to its customers and agents.

Ayalon's insurance agents will be able to take advantage of  WeSure's digital capabilities to improve their ability to compete better. Next, WeSure will examine how to combine the companies' activities in order to enjoy the advantages relative to size and the benefits of combining the company's activities and Ayalon's activities. In Valur's estimation, the transaction is expected to bring significant synergistic benefits to the two companies, gradually from the date of completion onwards. However, in the short term, the company expects one-time expenses following the transaction. For example, companies will be able to continue working directly with customers or through insurance agents.

One of the issues that troubled Ayalon's potential buyers - including the Golden Terry Foundation, an insurance training company and a group led by Eyal Lapidot - was a draft of a sharp audit report by the Supervisor of Insurance, Moshe Barkat, which included findings that raise suspicions of failures. Senior officials, regarding the handling of insurance incidents in the field of car claims - some of which allegedly contained actions that violated the provisions of the law that indicate the possibility of economic damage to the Ayalon company.

This report has financial significance, as every buyer of Ayalon will be bothered by it and the lawsuits that will follow. As far as is known, the sellers wanted the buyers to take on the risk of the lawsuits as well. Aid sources said they are not bothered by the report, They will know how to fix them. So the report did not constitute an obstacle to the eventual execution of the transaction.

The WeSure-Ayalon transaction is still subject to the existence of conditions precedent and approvals, including the approval of the competition commissioner, Michal Halperin, and the approval of the commissioner of the capital market, insurance and savings, Moshe Barkat - but these are not expected to create difficul