Nayax Ltd. (NASDAQ:NYAX) agreed to acquire smart-parking technology provider IPS Group for $350 million in cash on a cash-free, debt-free basis. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
The headline valuation is demanding. Nayax Ltd. (NASDAQ:NYAX) is paying approximately 17 times IPS's estimated 2026 adjusted EBITDA of $21 million before synergies. The multiple falls to roughly 12 times after including more than $8 million of run-rate adjusted EBITDA synergies expected by 2029.
IPS is also expected to generate more than $90 million in 2026 revenue and achieve an approximately 80% company-defined conversion rate. Applying Nayax's company-defined conversion rate to the adjusted EBITDA estimate produces approximately $16.8 million of adjusted EBITDA less capital expenditures. That implies a yield of approximately 4.8% under that company-defined measure. It is not operating cash flow less capital expenditures and does not capture cash taxes or working-capital movements. Nayax did not provide an IFRS reconciliation for these forward-looking IPS measures.
The strategic logic is credible. IPS manages more than 250,000 parking **** es for over 550 customers across the United States, the United Kingdom, Ireland and Canada. More than 60% of its revenue is recurring, while estimated 2026 organic growth is approximately 20%.
Nayax Ltd. (NASDAQ:NYAX) can bring IPS into a payments and mobility platform operating across more than 120 countries. Management sees opportunities to migrate IPS's payment volume to its processing platform, expand the parking business into Continental Europe, cross-sell electric-vehicle charging products and lower equipment costs through supplier relationships.
#parking
The headline valuation is demanding. Nayax Ltd. (NASDAQ:NYAX) is paying approximately 17 times IPS's estimated 2026 adjusted EBITDA of $21 million before synergies. The multiple falls to roughly 12 times after including more than $8 million of run-rate adjusted EBITDA synergies expected by 2029.
IPS is also expected to generate more than $90 million in 2026 revenue and achieve an approximately 80% company-defined conversion rate. Applying Nayax's company-defined conversion rate to the adjusted EBITDA estimate produces approximately $16.8 million of adjusted EBITDA less capital expenditures. That implies a yield of approximately 4.8% under that company-defined measure. It is not operating cash flow less capital expenditures and does not capture cash taxes or working-capital movements. Nayax did not provide an IFRS reconciliation for these forward-looking IPS measures.
The strategic logic is credible. IPS manages more than 250,000 parking **** es for over 550 customers across the United States, the United Kingdom, Ireland and Canada. More than 60% of its revenue is recurring, while estimated 2026 organic growth is approximately 20%.
Nayax Ltd. (NASDAQ:NYAX) can bring IPS into a payments and mobility platform operating across more than 120 countries. Management sees opportunities to migrate IPS's payment volume to its processing platform, expand the parking business into Continental Europe, cross-sell electric-vehicle charging products and lower equipment costs through supplier relationships.
#parking
16 days ago
