Israeli fintech company Nayax has announced that it has entered into a binding agreement to acquire Israeli payment solutions company On Track Innovations Ltd. (OTI), Trend reports with reference to Globes.
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 and 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.
Nayax, which held an IPO on the TASE last year and has a market cap of NIS 3.3 billion, has developed a platform which offers a complete solution for merchants including localized cashless payment acceptance, management suite, and marketing and loyalty suite, enabling them to conduct commerce anywhere, at any time.
OTI was founded 30 years ago and has been traded on Wall Street for 20 years. At its peak in 2006 the company was worth $180 million. But its founder Oded Bashan was forced out in 2013 by activist investors who were unhappy with the share's performance. Since the advent of the Covid crisis, OTI has been troubled by cash flow problems, Nayax said.
Nayax CEO Yair Nechmad said, "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. 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."