Nayax Targets Parking Market With $350M IPS Group Acquisition

Nayax Targets Parking Market With $350M IPS Group Acquisition Written by MarketBeat August 25, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. 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. Five stocks to consider instead of Nayax . 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. Get Nayax alerts: Sign Up 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