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Warburg Pincus Closes Deal to Acquire Israeli Credit Card Issuer Leumi Card

Leumi Card is a subsidiary of Israel-based Bank Leumi, which must divest the card issuer by 2020

New York-headquartered private equity firm Warburg Pincus LLC has closed a deal to acquire Israeli credit card issuer Leumi Card, a subsidiary of Israel-based Bank Leumi, one person familiar with the matter told Calcalist on condition of anonymity.

 

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Warburg Pincus has been approached for comment but has yet to respond.

 

A Leumi Credit Card. Photo: Shutterstock

 

Leumi has been approached for comment but has yet to respond.

 

Bank Leumi must divest Leumi Card by 2020, after the Israeli Parliament passed a law in January 2017 that mandates a separation between the two largest banks in Israel and their credit card subsidiaries.

 

The deal values the credit card issuer at around $640 million (NIS 2.5 billion), the person said.

 

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In December, Calcalist first reported that Warburg Pincus was in the running for the acquisition of Leumi Card, alongside side several other financial entities.

 

Leumi is expected to announce the deal by the end of the week, the person added.