Nayax Acquires Smart Parking Platform IPS for $350M, Shares Jump Over 12%

Nayax Ltd. shares rose more than 12% on Tuesday after the payment 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 represents approximately 17 times IPS's estimated 2026 adjusted EBITDA. After expected synergies, the multiple drops to about 12 times.

IPS provides connected parking meters, mobile payments, enforcement software, and curb management tools. Its technology supports over 250,000 parking spaces across the U.S., UK, Ireland, and Canada.

The deal will combine IPS's parking platform with Nayax's payment infrastructure and distribution network. Nayax operates in more than 120 countries and plans to expand IPS into continental Europe while cross-selling electric vehicle charging services.

IPS Forecasts Strong 2026 Growth

IPS projects 2026 revenue exceeding $90 million, with recurring sales accounting for over 60% of total revenue. The company expects organic revenue growth of approximately 20% and adjusted EBITDA of around $21 million.

Nayax said the acquisition should immediately improve gross margins, adjusted EBITDA margin, adjusted earnings per share, and free cash flow conversion. However, the deal is not included in Nayax's current 2026 guidance.

The company also expects more than $8 million in annual EBITDA synergies by 2029.

Expected Close in Q4

Nayax will finance the acquisition using available cash and approximately $150 million in new committed debt. Net leverage is expected to reach about 3.8 times at closing, declining to below 3 times by the end of 2027.

The transaction is expected to close in the fourth quarter, subject to regulatory approvals. IPS's management team will continue operating the business from San Diego.

NYAX stock performance: Shares rose 12.41% to $51.91 as of the data release on Tuesday.