Nayax will pay $4.5 million for On Track Innovations, a digital payments firm
Nayax Ltd. today announced that it has entered into a binding term sheet to acquire On Track Innovations Ltd. for about $4.5 million in cash. Both fintech companies are headquartered in Israel.
The acquisition will be completed in two phases, Nayax said. 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.
According to its latest financial statements, OTI reported revenues of $10.7 million in the first nine months of 2021.
Due to COVID-19, however, OTI experienced cash flow issues and on Jan. 10 filed a motion to the District Court in Nazareth, Israel, asking to commence proceedings pursuant to the country's Insolvency and Economic Rehabilitation Law. That petition was withdrawn as a result of the parties entering into the term sheet.
"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," said Nayax chief executive Yair Nechmad.
"OTI has an experienced workforce, a high-quality and loyal customer base as well as significant operations in the automatic refueling system market," he added.
Boasting a presence in more than 50 countries, OTI specializes in ATM readers, along with payment terminals for kiosks, vending machines and public transportation.
