Business in Brief: Leumi Card Raises $300 Million in Private Bond Offering

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FILE Photo: The Bank Leumi logo in front of the company's headquarters in Tel Aviv.
FILE Photo: The Bank Leumi logo in front of the company's headquarters in Tel Aviv. Credit: Ahikam Seri/Bloomberg

Check Point Software Q3 profit up, acquires cloud security firm Dome9

The Tel Aviv-based network security provider Check Point Software Technologies reported third quarter net profits Wednesday that beat expectations and also announced that it has acquired Israeli cloud security firm Dome9 to strengthen its position in the field. Check Point earned $1.38 per diluted share excluding one-time items in the quarter, up from $1.30 a year earlier. Revenue grew 4% to $471 million, the company said. “Third quarter results reached the top end of our projections, with better than anticipated strength coming from the U.S. and Europe,” CEO Gil Shwed said. Check Point is paying $175 million in cash for Dome9, a company founded in 2011 that enables security and compliance for rapid public cloud adoption and has annual revenues of $10 million. Check Point will be paying the purchase price for Dome9 from the $4.1 billion in cash that it has at its disposal. Prior investors in Dome9, which had raised $25 million up to now and has just over 100 employees, have included Japan’s SoftBank and Opus Capital. (Reuters and Yoram Gabison)

Leumi Card raises 1.1 billion shekels in private bond offering

Bank Leumi’s Leumi Card credit card subsidiary wrapped up a private bond offering to institutional investors Tuesday that raised 1.1 billion shekels ($300 million). The initial plan was to offer 500 million to 1 billion shekels in bonds, but in the end, the offering was considerably oversubscribed, attracting 2 billion shekels in bids from 60 financial institutions. The funds generated from the offering are expected to be used in part to finance a special 500 million shekel dividend to Bank Leumi itself prior the transfer of ownership of the credit card company to the Warburg Pincus private equity firm. The sale of Leumi Card to Warburg for 5.2 billion shekels, which was agreed in July, was the result of legislation requiring the bank to spin off its credit card operations in an effort to increase competition in the sector. Leumi Card, which has issued 2.2 million credit cards bearing either the Visa or Mastercard brand, had revenues of a billion shekels for the 12 months ending on June 30 and net profits for the period of 173 million shekels. (Yoram Gabison)

Leading indexes up on the TASE 

The benchmark TA-35 index gained 0.5% in trading  on the Tel Aviv Stock Exchange Wednesday, closing at 1,591.49 points, while the broader TA-125 index was up 0.6% to 1,436.88 points. Trading volume for the day was 1.1 billion shekels ($299 million). The top gainer in equity trading was AudioCodes, a manufacturer of voice over internet protocol products, whose share price jumped 14% to 44.45 shekels. The distinction as the largest loser for the day went to biopharmaceutical firm Opko Health, the share price of which declined by 4.6% to 12.25 shekels. Bank Leumi was the most active stock with turnover of 104 million shekels. Its shares closed down 0.6% at 23.20 shekels. The U.S. dollar rose against the shekel. The representative rate of the greenback was set at 3.680 shekels and continued to appreciate in value after the rate was set. The euro declined 0.51% to a representative rate of 4.192 shekels. (TheMarker)

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