Nayax buys US smart parking co IPS Group for $350m
Nayax, the Israeli fintech company, acquires US smart parking technology firm IPS Group for $350 million in cash, its largest acquisition to date. The deal expands Nayax's presence in the smart parking and autonomous commerce sectors, with financing through $150 million in debt.
Israeli fintech company Nayax (TASE: NYAX; Nasdaq: NYAX) announced the acquisition of US smart parking technology company IPS Group for $350 million in cash, marking its largest-ever acquisition. The deal, which Nayax is acquiring from Windjammer Capital Investors, represents a significant entry into the smart parking market and expands its operations in the autonomous commerce sector. Nayax states the combination will increase its potential target market in cashless payments by $85 billion, to $342 billion by 2029. The acquisition value reflects a multiple of 17 on IPS's adjusted EBITDA forecast this year, with expected synergies of $8 million per year by 2029 bringing the multiple to about 12. Nayax believes the deal will contribute immediately to its profits. To finance the acquisition, Nayax will raise about $150 million in debt, increasing its leverage. At the end of the second quarter, Nayax had cash and investments worth about $304 million and debt of $358 million. The company expects its net financial debt to EBITDA ratio to be 3.8 on completion in the fourth quarter, falling below 3 by the end of 2027. IPS Group is described as a leading provider of payment-based smart parking solutions with over 20 years of operation, deployed in more than 250,000 parking spaces, processing millions of transactions annually for local authorities, universities, and private operators. Nayax plans to integrate IPS's technology in its markets, with an emphasis on Europe. Nayax chairman and CEO Yair Nechman said the combined company can offer cities a unified platform for curb management and parking alongside EV charging. IPS CEO Chad Randall said joining Nayax will offer resources to expand globally.