Nayax Ltd., a global commerce enablement and payments platform designed to enable retailers to provide consumers with digital, cashless, connected commerce experiences, has entered into a binding term sheet to acquire On Track Innovations Ltd., a provider of near field communication and cashless payment solutions, for approximately $4.5 million in cash, according to a press release.

Both companies are publicly traded and based in Israel.

"This acquisition is an important step in our plan to gain share in our targeted markets and accelerate our growth opportunities in territories such as Japan," Yair Nechmad, chief executive officer and chairman of Nayax, said in the press release.

The acquisition will be completed in two phases. First, Nayax will lend OTI approximately $5.5 million to repay its outstanding debts. The Nayax loan will be repaid in two years, bearing a 10% annual interest rate. In the next phase, expected within 21 days of signing the loan agreement, OTI will be fully merged into Nayax in consideration for $4.5 million.

OTI generated revenue of approximately $10.7 million during the first nine months of 2021, according to the press release.

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