Nayax Acquires US Smart Parking Firm IPS Group for $350 Million, Expands Market Reach

Nayax, an Israeli fintech and payment solutions company, announced a binding agreement to acquire the American smart parking company IPS Group from private equity firm Windjammer Capital for $350 million in cash. The deal, expected to close in the fourth quarter of 2024 pending regulatory approvals, marks Nayax's significant entry into the smart parking sector. Following the announcement, Nayax's shares surged over 10% on the Tel Aviv Stock Exchange.

IPS Group provides advanced parking solutions including meters, enforcement software, and permits, managing over 250,000 parking spaces across the US, UK, Ireland, and Canada. This acquisition expands Nayax's total addressable market by $85 billion, reaching $342 billion by 2029. Nayax will finance the purchase through a combination of $150 million in new debt and $200 million from its existing cash reserves, which currently total $304 million. Post-acquisition, Nayax's net debt to EBITDA ratio is expected to be 3.8, with plans to reduce it below 3 by the end of 2027.

IPS is projected to generate over $90 million in revenue for 2024, with 60% recurring revenue and an adjusted EBITDA of $21 million. The purchase price reflects a 17x adjusted EBITDA multiple, anticipated to decrease to 12x after expected synergies. Nayax forecasts annual EBITDA synergies exceeding $8 million by 2029, mainly through integrating its payment processing capabilities into IPS's systems. IPS will continue operating from its San Diego headquarters under CEO Chad Randall. Nayax is publicly traded on both the Tel Aviv Stock Exchange and NASDAQ and specializes in payment and transaction solutions for vending machines and other automated retail systems.