Israel-based commerce enablement payments and loyalty platform Nayax has agreed to acquire 100% of Retail Pro International . The acquisition is valued at USD 36.5 million on a cash-free, debt-free basis.

The payment will be a combination of cash and potentially equity, contingent upon specific earnout targets being met. The management anticipates that this acquisition will have an immediate positive impact on net income, and the closing of the transaction is expected in the fourth quarter of 2023, subject to customary closing conditions. In the company press release, officials from Nayrax highlighted Retail Pro's strong brand recognition and the potential for their combined businesses to create innovative retail solutions.

Retail Pro officials expressed enthusiasm for joining Nayax and the opportunity to serve customers on a larger scale. Upon completion, this acquisition will expand Nayax's retail business, extending its reach to over 9,000 retailers across more than 100 countries, with approximately 150,000 POS lanes and access to a global partner network of over 80 distributors. The context of the acquisition According to the company press release, the global retail industry continues to see strong demand for payments and POS systems, making this acquisition strategically significant.

The deal is set to complement Nayax's existing technology solutions and align with the company's growth strategy. Furthermore, Retail Pro's global reach and low-cost sales and support structure are expected to bolster Nayax's competitive position. The deal is expected to provide an opportunity to cross-sell Nayax's payment platform to Retail Pro's distributor and customer base, providing growth opportunities for both companies.

Financially, the acquisition adds diverse revenue sources, including licence, professional services, subscription, and processing revenue, to Nayax's financial profile. Nayax plans to finance the initial payment through previously committed bank financing. The press release further details that Retail Pro generated approximately USD 14 million in adjusted revenue and USD 4 million in Adjusted EBITDA for fiscal year 2022, further strengthening the financial prospects of the acquisition.

In essence, the acquisition of Retail Pro by Nayax represents a strategic move to tap into the growing demand for retail POS solutions, leveraging the experience and reach of Retail Pro. The integration of these businesses is expected to make waves in the retail technology sector, expanding Nayax's global presence. .