Nayax will pay $4.5 million for On Track Innovations, a digital payments firm

Jan. 20, 2022

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 That petition was withdrawn as a result of the parties entering into the term sheet.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.

Related

Nayax Jun2021 New Logo
Nayax Jun2021 New Logo
Nayax Jun2021 New Logo
Nayax Jun2021 New Logo
Nayax Jun2021 New Logo
Management

Nayax 2021 Q3 revenue increases 40%, device connections grow 38% to 461K

Nov. 18, 2021
In its 2021 third quarter financial report, Nayax observed that diverse range of verticals and geographies led to a 40% year-over-year increase in revenue, to $31 million. The...
Amir Eilam/LinkedIn
Amir Eilam Oti
Amir Eilam Oti
Amir Eilam Oti
Amir Eilam Oti
Amir Eilam Oti
Management

On Track Innovations appoints Amir Eilam chief executive

Nov. 9, 2021
Yokneam, Israel-based On Track Innovations Ltd., a provider of NFC and cashless payment solutions, appointed Amir Eilam chief executive. Eilam will continue to serve as OTI's ...