Nayax Completes $350 Million Acquisition of IPS Group

Nayax, listed on Nasdaq and the Tel Aviv Stock Exchange, announced the completion of its acquisition of IPS Group, a company specializing in smart paid parking technologies, from Windjammer Capital Investors. The transaction is valued at $350 million on a cash-free, debt-free enterprise value basis. Headquartered in San Diego, IPS serves more than 250,000 parking spaces across the United States, Canada, the United Kingdom, and Ireland, with its 2026 revenue projected to surpass $90 million.

Nayax explained that the transaction was funded using available cash alongside approximately $150 million in new debt, meaning the company increased its leverage to finance an acquisition valued at more than three times the target's projected revenue. Smart parking is part of the payments sector in which Nayax operates, as these systems integrate electronic payment screens with parking management and collection software—a market that is expanding as cities transition toward digital, cashless transportation systems.

Accordingly, the transaction adds a customer base comprising municipalities and parking operators across four countries to Nayax's portfolio, enabling it to sell payment and settlement services to new clients rather than building such a network from scratch. Conversely, backing the deal with new debt places a strain on the company's cash flows over the coming quarters, making the success of the transaction contingent on management's ability to boost the target's operating profits at a pace sufficient to service the additional financing costs.

This development is significant for Arab investors because Nayax is also listed on the Tel Aviv Stock Exchange, making the deal a benchmark for valuing payment tech companies in the Middle East, and because smart parking services are spreading across Gulf cities as part of smart city projects. Investors are closely watching the company's ability to convert this acquisition into earnings before interest and taxes (EBIT) growth, as revenue growth alone is insufficient to offset the cost of the new debt.

What do these terms mean?

Enterprise Value: The total value of a company calculated based on equity plus net debt. Cash-Free, Debt-Free Value: A valuation that excludes a company's cash and debt, reflecting the value of the operational business alone. Dual Listing: When a company's shares are listed on more than one stock exchange, as is the case with Nayax on Nasdaq and Tel Aviv. Revenue Multiple: The ratio of a company's value to its annual revenue, used to compare company valuations with one another. Earnings Before Interest and Taxes (EBIT): A measure of a company's operating performance before taking financing costs and taxes into account.