Nayax to Acquire On Track Innovations (OTI), a provider of Smart Payment Solutions for approximately $4.5 million in Cash

Rhea-AI Summary

Nayax has announced a binding term sheet to acquire On Track Innovations Ltd. (OTIVF) for approximately $4.5 million in cash. This acquisition aims to enhance Nayax's market share and growth opportunities, particularly in Japan. The transaction involves an initial loan of $5.5 million to OTI for debt repayment, with a subsequent merger expected within 21 days. OTI, which operates in 55 countries, reported $10.7 million in revenue for the first nine months of 2021. The acquisition supports Nayax's strategy to integrate complementary technologies.

Positive

• Acquisition valued at $4.5 million enhances market share and growth prospects.
• Loan of $5.5 million to OTI facilitates debt repayment and supports stability.
• OTI has a loyal customer base and significant operations in the automatic refueling system market.

Negative

• OTI experienced cash flow issues and filed a motion for insolvency proceedings prior to the acquisition.
• Potential integration challenges may arise from merging operations between Nayax and OTI.

HERZLIYA, Israel, Jan. 20, 2022 /PRNewswire/ -- Nayax Ltd. (TASE: NYAX), a global commerce enablement and payments platform designed to enable retailers to provide consumers with digital, cashless, connected commerce experiences, and enhance consumer loyalty and conversion, today announced that it has entered into a binding term sheet to acquire On Track Innovations Ltd. (OTI) (OTC-QX: OTIVF), 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 Officer 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.

ABOUT OTI

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.

ABOUT NAYAX

Nayax is a global commerce enablement and payments platform designed to help merchants scale their business, traded on TASE. 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. With foundations and global leadership in serving unattended retail, Nayax has transformed into a comprehensive solution focused on our customers' growth across channels. Today, Nayax has 10 global offices, over 500 employees, connections to more than 80 merchant acquirer and payment method integrations and is a recognized payment facilitator worldwide. Nayax's mission is to improve our customers' revenue potential and operational efficiency

Forward Looking Statement

The information included in this press release contains, or may be deemed to contain, forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). Said forward-looking statements, relating to the initial public offering, are subject to uncertainties and assumptions and the actual results may materially differ. All forward-looking statements in this press release are based on information available to Nayax on the date hereof.  All written or oral forward-looking statements attributable to Nayax are expressly qualified in their entirety by the factors referred to above. Nayax does not intend to update these forward-looking statements.

Investor Relations Contact:
Miri Segal
MS-IR LLC
ir@nayax.com
Tel: +1-917-6078654

Logo: https://mma.prnewswire.com/media/1522055/Nayax_Logo.jpg

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SOURCE Nayax

FAQ

What is Nayax's acquisition plan for On Track Innovations Ltd. (OTIVF)?

Nayax plans to acquire On Track Innovations for approximately $4.5 million to enhance its market presence and growth opportunities.

What is the financial structure of Nayax's acquisition of OTIVF?

Nayax will initially provide a loan of $5.5 million to OTI to repay debts before a full merger.

How will the acquisition of OTIVF impact Nayax's business?

The acquisition is expected to improve Nayax's market share and provide synergies due to OTI's established presence in the automatic refueling sector.

What financial difficulties did On Track Innovations (OTIVF) face?

OTI faced cash flow issues and filed for insolvency proceedings before entering the acquisition agreement with Nayax.