PR Newswire | Jun 30, 2021 06:39AM EDT

on its investment in ironSource

06/30 05:38 CDT

Leumi is expected to turn a profit of more than a quarter of a billion shekels on its investment in ironSourceThe Bank acquired the company's shares through its non-financial investment entity - Leumi Partners, headed by Avi Ortal. This expected pre-tax figure adds to the NIS 90 million profit Leumi had earned in the current quarter on its Retailors investment. In total, during the current quarter, Leumi is expected to earn approximately NIS 350 million before tax on the two successful investments. TEL AVIV, Israel, June 30, 2021

TEL AVIV, Israel, June 30, 2021 /PRNewswire/ -- Bank Leumi (TASE: LUMI)is expected to earn approximately NIS 253 million before tax on its investment in ironSource, which IPOd on the NASDAQ in New York yesterday at a market cap of USD 11 billion. Leumi sold 1,290,230 ironSource shares as part of the merger with SPAC company Thoma Bravo Advantage. Out of Leumi's pre-tax profit on the shares in Q2 2021, NIS 39 million is in respect of the shares sold as part of the merger and NIS 214 million - for the revaluation of the Bank's remaining ownership stake - based on the shares' price in the merger.

The investment in ironSource was made by Leumi Partners, Leumi's non-financial investment entity, headed by Avi Ortal. Following the completion of the merger and sale of its shares in ironSource, Leumi Partners will retain approx. approximately 0.75% of ironSource's shares. These shares are subject to contractual restriction provisions for 6 months, applicable to ironSource's shareholders.

Founded in 2011, ironSource has developed a platform for marketing games and apps. The company's founders include Tomer Bar-Zeev, who serves as the company's CEO to this day, brothers Itai, Roi and Eyal Millard, Tamir Carmi, Arnon Harish, Netanel Shadmi and Omer Kaplan. The company employs about 1,000 people in Israel and abroad and has been profitable for about a decade. In the past five years, it has distributed profits of more than USD 300 million.

Leumi's profit on the ironSource investment joins another profit that the Bank is expected to post during the next quarter on another successful investment by Leumi Partners - Retailors from the Fox Group. About two months ago, Leumi Partners exercised an option for approximately NIS 90 million on Retailors' shares. Following the completion of Retailors' IPO, Leumi will retain an ownership stake of 6.81% in the company.

For more information visit www.leumi.co.il or contact Adi Molcho Weinstein, VP, Head of Investor Relations, at investorrelations@bankleumi.co.il

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SOURCE Bank Leumi