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Israeli fintech company Nayax (TASE: NYX) has announced that it has entered into a binding agreement to acquire Israeli payment solutions company On Track Innovations Ltd. (OTI) (OTC-QX: OTIVF).

The acquisition will be completed in two phases. First, Nayax will lend OTI approximately $5.5 million to pay its outstanding debts. The Nayax loan will be repaid in two years, with an annual interest rate of 10% and in the next phase, scheduled within 21 days after the loan agreement is signed, OTI will fully merge with Nayax for $4, 5 million.

Nayax, which made an IPO in TASE last year and has a market capitalization of NIS 3.3 billion, has developed a platform that offers a complete solution for merchants that includes localized cashless payment acceptance, administration package and payment package. marketing and loyalty, allowing them to trade anywhere, anytime.

OTI was founded 30 years ago and has been listed on Wall Street for 20 years. At its peak in 2006, the company was worth $180 million. But its founder, Oded Bashan, was forced out in 2013 by activist investors unhappy with the stock’s performance. Since the advent of the Covid crisis, OTI has struggled with cash flow, Nayax said.

Nayax CEO Yair Nechmad said: “This acquisition is an important step in our plan to gain share in our target markets and accelerate our growth opportunities in territories such as Japan. OTI has an experienced workforce, a high-quality and loyal customer base as well as significant operations in the auto refueling systems market. This transaction supports Nayax’s strategic business plan as we constantly explore potential acquisitions with complementary technologies that will support our continued growth.”

Posted by Globes, Israel Business News – – on January 23, 2022.

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