Nayax has announced that it has entered into a binding term sheet to acquire On Track Innovations for approximately $4.5 million in cash.
“This acquisition is an important step in our plan to gain share in our targeted markets and accelerate our growth opportunities in territories such as Japan,” commented Yair Nechmad, chief executive and chairman of Nayax.
“OTI has an experienced workforce, a high-quality and loyal customer base as well as significant operations in the automatic refueling system market. This transaction supports Nayax’s strategic business plan, as we constantly explore potential acquisitions with complementary technologies that will support our continued growth,” Nechmad concluded.
The acquisition will be completed in two phases. First, Nayax will lend OTI approximately $5.5 million to repay its outstanding debts. The Nayax loan will be repaid in two years, bearing a 10% annual interest rate. In the next phase, expected within 21 days of signing the loan agreement, OTI will be fully merged into Nayax in consideration for $4.5 million.
OTI is traded on the OTC stock exchange. The company, operating in 55 countries, has developed ATM readers and payment terminals (unattended payment), self-service kiosks, automatic vending machines and public transportation payment stations. In addition, OTI has developed automatic refueling solutions for gas stations and vehicle fleets. According to its latest financial statements, OTI reported revenues of approximately $10.7 million in the first nine months of 2021, $1.2 million of which are recurring revenues. Due to Covid-19 OTI experienced cash flow issues and, on January 10, 2022, filed a motion to the District Court in Nazareth, Israel, asking to commence proceedings pursuant to the Insolvency and Economic Rehabilitation Law. The petition was withdrawn as a result of the parties entering into the term sheet.
Nayax offers a complete solution including localized cashless payment acceptance, management suite, and marketing and loyalty suite, enabling merchants to conduct commerce anywhere, at any time. Today, Nayax has 10 global offices, over 500 employees, connections to more than 80 merchant acquirer and payment method integrations and is a recognised payment facilitator worldwide. Nayax’s mission is to improve our customers’ revenue potential and operational efficiency.
