Nayax Targets Parking Market With $350M IPS Group Acquisition

Key Points

• Nayax agreed to acquire IPS Group for $350 million in a cash-free, debt-free transaction expected to close around the fourth quarter. The deal will be funded mainly with cash and $150 million in new debt, resulting in estimated leverage of 3.8 times at closing.
• IPS adds a substantial parking technology platform, with more than 550 customers, 250,000 managed parking spaces and roughly 180,000 point-of-sale devices. Its business generates more than 60% recurring revenue and is projected to deliver over $90 million in 2026 revenue and $21 million in adjusted EBITDA.
• Nayax expects synergies from payment processing, international expansion, EV-charging cross-selling and cost savings, while targeting an $85 billion parking payments opportunity. The acquisition is intended to expand Nayax’s total addressable market to $342 billion and support its longer-term growth objectives.

Nayax NASDAQ: NYAX said it has entered into a definitive agreement to acquire parking technology company IPS Group in a transaction valued at $350 million on a cash-free, debt-free basis, as the payments company seeks to expand its presence in mobility and municipal markets.

The proposed acquisition is expected to close around the fourth quarter, subject to closing conditions. Nayax Chief Financial Officer Sagit Manor said the transaction would be funded primarily with cash on hand, supplemented by $150 million in newly committed debt.

At closing, Nayax expects leverage of about 3.8 times, with plans to reduce that level significantly by the end of 2027. IPS management is expected to remain in place and continue managing the business after the deal closes.

IPS brings parking platform and municipal customer base

IPS, founded in 2000 and based in San Diego, provides parking technology to municipalities, private operators and universities. The company has more than 550 customers and manages over 250,000 parking spaces, Nayax said. About 80% of IPS revenue comes from the United States, while the company also operates in the U.K., Ireland and Canada.

The business has roughly 180,000 physical point-of-sale devices in the field, including single-space parking meters and kiosks that can serve multiple spaces. IPS also provides a software suite designed to help cities and operators manage parking operations, payments and enforcement.

Yair Nechmad, Nayax’s CEO, said the acquisition would give Nayax greater access to a customer base that has historically been difficult for the company to reach.

“Cities in general are a very different sales cycle, very different type of way to go and sell,” Nechmad said. He added that Nayax believes its payment platform can support government and city customers seeking an integrated ecosystem for parking, electric-vehicle charging, transportation and other services.

Financial profile and expected synergies

Manor said IPS is expected to generate more than $90 million in revenue in 2026, with adjusted EBITDA of $21 million. More than 60% of its revenue is recurring, and the company is expected to post approximately 20% organic revenue growth compared with 2025, according to Nayax.

Nayax said IPS also has strong free-cash-flow generation, with an approximately 80% conversion rate. The $350 million purchase price represents roughly 17 times expected 2026 adjusted EBITDA, Manor said. However, she said Nayax estimates the effective multiple would be about 12 times when anticipated synergies are included.

Those synergies are expected to come primarily from payment processing, international expansion, cross-selling electric-vehicle charging solutions and potential cost savings in manufacturing and other areas. Manor said IPS currently has payment-processing revenue-sharing arrangements that Nayax believes it can improve through integration with its own payment infrastructure.

“The payment processing” is the first major opportunity, Manor said, followed by international expansion through Nayax’s operations and partnerships in 120 countries.

Nayax said it conducted two years of research and due diligence on the parking sector and reviewed multiple potential acquisitions before selecting IPS. The company said its review focused in part on whether IPS’ software platform could scale internationally and connect readily with Nayax’s payment infrastructure.

Mobility expansion and addressable-market opportunity

Nechmad said Nayax views the parking sector as a major extension of its existing unattended-payments business. The company cited an $85 billion total payment volume opportunity from the parking transaction, including approximately $15 billion tied to card-present payments at parking meters. Nayax said the broader opportunity reflects additional services such as card-not-present payments, mobile applications and enforcement capabilities.

The company also said the transaction would expand its total addressable market to $342 billion. Manor noted that the market estimates discussed on the call relate to payments and do not include potential revenue from services or hardware.

Nayax expects the IPS business to be accretive to its gross margin, adjusted EBITDA margin, adjusted earnings per share and free-cash-flow conversion. Manor compared IPS’ projected 2026 financial profile with Nayax’s previously stated 2026 guidance of $510 million to $520 million in revenue and $85 million to $90 million in adjusted EBITDA.

The acquisition supports Nayax’s longer-term objective of building a $2 billion revenue company with a 50% gross margin and 30% adjusted EBITDA margin, Manor said.

M&A plans and financing considerations

Nechmad said Nayax would continue evaluating acquisition opportunities but would focus on integrating IPS before pursuing another transaction of similar size. He said the company intends to maintain “very strong, tight capital management” while continuing to review its acquisition pipeline.

On potential equity financing, Manor said Nayax’s first priority is to reduce leverage through the combined companies’ cash flow and adjusted EBITDA. She said the company would continue to evaluate financing alternatives, while any future equity raise would depend on opportunities, timing, valuation and funding needs.

About Nayax (NASDAQ:NYAX)

Nayax Ltd. is a global fintech company specializing in cashless payment solutions, telematics and management services for unattended retail environments. Founded in 2005 and headquartered in Israel, Nayax develops hardware and software platforms that enable vending machines, kiosks, laundromats, e-commerce and self-checkout points to accept a wide range of payment methods, including credit and debit cards, mobile wallets and contactless NFC transactions.

The company’s product portfolio comprises proprietary point-of-sale terminals—such as the VPOS and Carbon series—as well as a cloud-based management suite known as the Monyx platform.

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