Big winners from Cellebrite’s exit: Leumi, Clal and Discount bank investment arms
Leumi Partner and Clal Insurance’s investment arm will earn $40 million from Cellebrite’s offering at a $2.4 billion valuation, and $35 million from their investments in the IGP Fund. Discount Capital will directly earn $30 million and $20 million from its investment in IGP
Leumi Partners, which is managed by Avi Ortal, and Clal Insurance’s Canaf branch, which is managed by Yossi Dori, are also some of the big investors in the IGP fund, each responsible for 20% of the VC’s funds. Discount Capital invested some 10% of funds in IGP. The three entities will receive a gross profit (prior to management expenses etc.) amounting to half of IGP’s profit, meaning an additional $90 million. Leumi and Clal will earn $35 million each, while Discount Capital, which is managed by Hila Himi-Alpert, will earn $20 million.At this time, the profits are still on paper until the block on selling shares is lifted. For Clal, these earnings are less effective on their results, while for Leumi Partners and Discount Capital these are significant amounts. Discount Capital completed 2020 with a profit of NIS 150 million ($45 million), and Leumi Partners registered a NIS 100 million ($30 million) profit. Leumi is also expected to mark handsome earnings from ironSource’s merger with Thoma Bravo’s SPAC in a deal that values ironSource at $11.5 billion. Leumi Partners holds a 1% stake in ironSource’s shares, after realizing 1% of its stake in the sale to the CVC Capital Partners firm two years ago, at a company valuation of $1.7 billion. Leumi Partners’ shares are listed at a company value of half a billion dollars, but their current value stands at around $110 million, meaning the bank will record a profit of $100 million on paper. In addition, Retailors Ltd.’s IPO, where the bank invested NIS 66 million ($20 million) at the beginning of 2020 at a valuation of NIS 600 million ($180 million), and received an option of an additional 10%, is expected to go ahead by the end of the month at a value between NIS 1.7-1.8 billion ($510-550 million). During the course of that deal, Leumi will record a profit on paper and maybe also in practice, as it is expected to sell some its shares as part of the offering, of between NIS 130-140 million ($40-42 million).