From employee perks to asset management: Hitechzone expands into finance | CTech

The consumer club Hitechzone and the financial firm Mor Langermann are acquiring control of the investment house Kivun at a valuation of NIS 5 million. In the first stage, the two acquiring entities will each hold 30% of the company (60% in total). They will later be joined by Gabi Dishi, one of the owners of hedge fund firm Alpha, who will initially hold 9%, with the option to increase his stake to up to 20%.

The agreement also includes an option to raise the combined holding to 83%. In addition, capital will be injected into the investment house to support growth and expand its operations. The transaction is expected to close within the coming month.

Kivun is currently owned by founder Beni Mozes (40%), Dr. Jan Reuven (16%), CEO Avi Meir (5%), and additional minority shareholders. The acquiring group will purchase all of Mozes’ shares, part of Reuven’s holdings, and the remaining shares from smaller investors. Mozes, aged 83, has been seeking a buyer for his stake for the past year. Despite the change in control, Mozes and Meir are expected to continue managing the company’s mutual funds and portfolio management activities. Mozes declined to comment on the deal but confirmed that control is being sold.

The company manages approximately NIS 350 million in assets, of which about NIS 250 million is in mutual funds, with the remainder in managed investment portfolios. The mutual funds are not operated independently but are managed under a “hosting” model, with operational services provided by Ayalon Investment House. The mutual fund industry remains one of the public’s main savings channels for the short- and medium-term and currently manages a record NIS 835 billion in assets.

Hitechzone’s acquisition of control over the investment house comes as a surprise to industry observers. According to senior mutual fund executives, the consumer club, which targets employees in the high-tech sector, may in the future seek to market investment management services and portfolio products to its members, with a focus on the technology sector. Hitechzone already maintains collaborations with financial institutions across banking and long-term savings, meaning its management will likely need to reassess its policy regarding the distribution of financial products.

Hitechzone is controlled by Ronen Dagan (25.2%) and Noam Busidan (24.2%) and is operated under its parent company, High Biz. It is considered one of Israel’s largest and most influential consumer clubs. The club serves employees in the high-tech industry and has more than 370,000 members across over 2,500 companies. Unlike other consumer clubs, membership is not open to the general public and is limited to organizational affiliation.

Over the years, the club has expanded beyond consumer discounts into a range of business activities. In e-commerce, it operates an online retail platform that grew following the acquisition of the Walla Shops website and is supported by an independent logistics network and a large distribution center.

In addition, the core of the club’s financial activity is based on a dedicated credit card issued in partnership with Cal. Its broader influence is also reflected in strategic collaborations in capital markets and retail. Among other initiatives, the club operates a joint banking service with Bank Hapoalim under the “Poalim Hitechzone” brand, offering members preferential account terms. It is also active in the automotive sector through Hitechzone Motors, which provides new vehicle purchases on discounted terms, and periodically organizes real estate and mortgage initiatives for members.

Hitechzone’s shareholders also include the Menora Mivtachim Group, through Menora Mivtachim Pension and Provident Funds (12.9%) and Menora Mivtachim Insurance (4.4%). The transaction therefore marks an indirect return of the group to the mutual fund sector, after it previously merged its mutual fund operations with Altshuler Shaham in 2017.

For Mor Langermann, the deal is expected to broaden its activity base. Mor Langermann Capital is a relatively new participant in the underwriting sector, while the banking firm itself was founded in 2015 by Uri Mor and Etty Langermann.

The strategic rationale behind the joint acquisition remains unclear. Sources involved in the transaction say the main driver was the relatively low valuation at which the investment house was offered. The investment management industry, particularly mutual funds, has undergone significant consolidation in recent years.

Ronen Dagan said: “We at Hitechzone are committed to maximizing the purchasing power of high-tech employees. Our strategy includes developing ventures and investments in key areas such as real estate, automotive, and finance. These are the categories where club members spend the most, and therefore where we can create the greatest savings and value for them.”