Isracard has entered into an agreement to acquire the digital challenger Esh Bank shortly before its official public launch. This transaction is strategically timed following Isracard's own acquisition by the Delek Group, signaling a bold move to challenge the country’s dominant banking duopoly. The strategic rationale for the deal centers on the immediate acquisition of a hard-to-obtain banking license and a state-of-the-art, cloud-native technology stack. By bringing Esh Bank’s infrastructure in-house, Isracard can transition from a payment specialist to a full-service digital bank, offering deposits and advanced credit products with significantly lower overhead costs than traditional competitors. The deal structure includes a mix of cash and share allocations, with specific performance-based milestones to align the interests of the founding team with the new parent company. Furthermore, the acquisition of a minority stake in Esh’s dedicated technology unit ensures that the acquirer maintains control over the core intellectual property driving the bank's automation and security. This partnership highlights the accelerating trend of established financial players "buying rather than building" digital capabilities to stay relevant in a rapidly evolving regulatory environment.

ESH BANK, which reported an EBITDA margin of LOGIN in 2026, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Financial Services sector (14.0x).

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