Nayax acquires IPS Group for $350 million to enter smart parking

Nayax Ltd. agreed to acquire smart parking technology provider IPS Group Inc. for $350 million in cash, expanding its addressable cashless opportunity by $85 billion to $342 billion by 2029.

"Cities run some of the most demanding unattended commerce anywhere, with strict compliance requirements and infrastructure that must last a decade," said Yair Nechmad, chairman and chief executive officer of Nayax. "Together with IPS we can give cities a unified platform for the curb and run parking alongside EV charging."

The deal, on a cash-free and debt-free basis, values IPS at approximately 17 times its estimated 2026 adjusted EBITDA of $21 million, a multiple that drops to roughly 12 times when expected cost savings are factored in. IPS projects more than $90 million in 2026 revenue, with recurring sales accounting for more than 60 percent of that total and organic growth of approximately 20 percent. Nayax will fund the transaction with $200 million from its cash reserves and $150 million in new committed debt.

The acquisition places Nayax in direct competition within the rapidly digitizing urban mobility and curb-management sector, where municipalities and private operators increasingly seek integrated payment and enforcement solutions. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals.

Expanding the Addressable Market by $85 Billion

IPS, founded in 2000 and headquartered in San Diego, manages more than 250,000 parking spaces across the United States, the United Kingdom, Ireland, and Canada. Its platform spans connected parking meters, mobile and text-based payments, enforcement and permitting software, vehicle detection, and curb data analytics. The company processes millions of consumer payment transactions annually for municipalities, universities, and private operators.

Nayax, which operates in more than 120 countries, plans to combine IPS's parking platform with its own payment infrastructure and distribution network. The Israeli-based company intends to expand IPS's footprint into Continental Europe and cross-sell electric vehicle charging services alongside parking solutions. Nayax expects more than $8 million in annual EBITDA savings by 2029, primarily through integrating its clearing capabilities into IPS's systems.

"IPS fits perfectly into our M&A playbook," said Aaron Greenberg, chief strategy officer of Nayax. "We seek companies in verticals where payments and software work together, using our payment stack and infrastructure to take these businesses global."

Following completion, Nayax expects its net leverage to reach roughly 3.8 times EBITDA at closing, before declining to below 3 times by the end of 2027. The company anticipates the acquisition will immediately improve gross margin, adjusted EBITDA margin, adjusted earnings per share, and free cash flow conversion. The transaction is not included in Nayax's current 2026 guidance.

IPS's management team, led by CEO Chad Randall, will continue to operate the business from its San Diego offices. Jefferies LLC served as exclusive financial advisor and Reed Smith LLP as legal counsel to Nayax. Harris Williams served as exclusive financial advisor and Kirkland & Ellis LLP as legal counsel to IPS and Windjammer Capital Investors.

Shares of Nayax surged more than 12 percent on the Nasdaq following the announcement and jumped more than 10 percent on the Tel Aviv Stock Exchange. The company is dual-listed on both exchanges.

Nayax has built its unattended verticals on a single pattern: high-frequency, low-value transactions in which operators receive an end-to-end platform — hardware, software, payments, and loyalty — from one provider. Parking fits that pattern, and IPS gives Nayax a leading platform from which to compete as a provider of hardware, software, and payments in the municipal sector. The deal follows Nayax's established approach of acquiring a trusted solution provider in a vertical, then integrating its payments infrastructure to serve customers globally.

This article is for informational purposes only and does not constitute investment advice.