Nayax
Yair Nechmad

Nayax to Acquire On Track Innovations for approximately $4.5 million in Cash

Nayax has announced that it has entered into a binding term sheet to acquire On Track Innovations Ltd. for approximately $4.5 million in cash.

Nayax‘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’, Yair Nechmad, Chief Executive Officer and Chairman of Nayax said. ‘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.’

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.

PV’s Bluffers Guide to 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 The petition was withdrawn as a result of the parties entering into the term sheet.

More Nayax news on Planet Vending, HERE

 

 

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Planet Vending’s Editor is Ian Reynolds-Young and it’s Ian’s unique writing talent that has made PV what it is today – the best read (red) vending blog in the world, and vending’s best read (reed). Ian ‘tripped and fell into vending’, in the capacity of PR executive, before launching a specialist agency, ‘reynoldscopy’, dedicated to the UK Vending business. The company continues to represent the interests of many of the sector’s leading brands.

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