Nayax Ltd. (NASDAQ:NYAX) stock jumped over 12% Tuesday after the payments company agreed to acquire smart parking technology provider IPS Group Inc. for $350 million in cash.
Deal Expands Parking Business
Nayax will acquire IPS from Windjammer Capital Investors on a cash-free, debt-free basis. The purchase price equals about 17 times IPS’ estimated 2026 adjusted EBITDA. That multiple falls to about 12 times after expected synergies.
IPS provides connected parking meters, mobile payments, enforcement software and curb-management tools. Its technology supports more than 250,000 parking spaces across the U.S., U.K., Ireland and Canada.
The deal will combine IPS’ parking platform with Nayax’s payment infrastructure and distribution network. Nayax operates in more than 120 countries. The company plans to expand IPS into Continental Europe and cross-sell electric vehicle charging services.
IPS Forecasts Strong 2026 Growth
IPS expects 2026 revenue to exceed $90 million, with recurring sales accounting for more than 60% of the total. The company projects about 20% organic revenue growth and adjusted EBITDA of roughly $21 million.
Nayax expects the acquisition to immediately improve gross margin, adjusted EBITDA margin, adjusted earnings per share and free cash flow conversion. However, the deal is not included in its current 2026 guidance.
The company also expects more than $8 million in annual EBITDA synergies by 2029.
Closing Expected In Fourth Quarter
Nayax will fund the purchase with available cash and about $150 million of new committed debt. Net leverage is expected to reach roughly 3.8 times at closing before falling below 3 times by the end of 2027.
The transaction is expected to close in the fourth quarter, subject to regulatory approval. IPS’ management team will continue operating the business from San Diego.
NYAX Price Action: Nayax shares were trading up 12.41% at $51.91 at the time of publication on Tuesday, according to Benzinga Pro data.
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