Nayax Acquires IPS Group for $350M Parking Tech Expansion

Nayax is significantly expanding its unattended commerce footprint with the $350 million acquisition of IPS Group, a prominent provider of smart parking and curb management solutions. This strategic move is set to broaden Nayax's addressable cashless market, projecting an increase of approximately $85 billion and pushing its total estimated opportunity to a substantial $342 billion by 2029. The deal, structured on a cash-free, debt-free basis, values IPS Group at roughly 17 times its projected 2026 adjusted EBITDA before anticipated synergies.

IPS Group, previously backed by Windjammer Capital Investors, brings a comprehensive suite of payment-enabled infrastructure to the table. Their offerings encompass smart parking meters, mobile and text-based payment systems, enforcement and permitting software, and advanced vehicle detection and curb data analytics. With operations managing over 250,000 parking spaces across the United States, United Kingdom, Ireland, and Canada, IPS Group represents a significant entry point for Nayax into the critical urban infrastructure sector.

The integration promises to merge IPS Group's specialized hardware and software expertise with Nayax's extensive global payment infrastructure and distribution network, which spans more than 120 countries. Nayax intends to leverage this synergy to accelerate IPS Group's international expansion, with an initial focus on Continental Europe. Furthermore, Nayax plans to introduce parking and curb management services to its existing customer base, creating cross-selling opportunities and enhancing its value proposition.

Financial projections highlight the attractive economics of the transaction. IPS Group is anticipated to generate over $90 million in revenue for fiscal year 2026, with more than 60% derived from recurring sources, and revenue growth projected at approximately 20% year-over-year. Adjusted EBITDA is expected to reach around $21 million, demonstrating a robust free cash flow conversion rate of roughly 80%. Nayax anticipates the acquisition will be immediately accretive to key financial metrics, including gross margin, adjusted EBITDA margin, adjusted EPS, and free cash flow conversion.

Significant operational synergies are also a key driver for the deal. Nayax estimates run-rate EBITDA synergies exceeding $8 million by 2029. These are expected to stem from migrating IPS Group's payment volume onto Nayax's processing infrastructure, expanding into new international markets, and integrating adjacent services like electric vehicle (EV) charging. The acquisition is expected to result in a net leverage ratio of approximately 3.8 times at closing, with a projected decline below 3 times by the end of 2027. Funding for the transaction will be a combination of existing cash reserves and approximately $150 million in newly committed debt.

The leadership of IPS Group, including CEO Chad Randall, is expected to remain in place, continuing operations from San Diego. This continuity, coupled with Nayax's global reach and payment expertise, positions the combined entity for substantial growth in the evolving smart city and unattended commerce sectors. The transaction is slated for completion in the fourth quarter of 2026, pending regulatory approvals.