Bank Leumi, an Israel-based lender, and Azrieli Group, a real estate developer, have agreed to sell their credit card business Leumi Card to the U.S. private equity firm Warburg Pincus for 2.5 billion shekels ($685 million).
Leumi will receive $545.9 million for its 80 percent stake, and Azrieli had agreed to sell its 20 percent stake.
Israel’s Harel Insurance Investments and Financial Services will lend Warburg Pincus $232 million for the purchase.
Warburg Pincus will pay $285.8 million upon completion of the deal, a further $93.1 million a year later, and the remaining amount after two years.