SafeCharge has announced that it is extending its acquiring agreement with Nayax, an Israeli technology company specializing in providing credit card payment systems for vending machines, to the end of 2024.
With the investment in Nayax, the London-based payment provider is strategizing to win Tier 1 customers within new target verticals and markets.
The AIM-listed company first made a $6 million investment in Nayax in December 2016 in Exchange for 4 percent of the company’s share capital. The firm gained $2.6 million from that initial investment as in December 2017, the investment was valued at $8.6 million.
A Highly Profitable Deal
In February this year, SafeCharge further increased its stake in the Israeli payment company by $18.5 million which put the total investment at 24.5 million. With this additional investment, the company gained control of 11 percent of Nayax's total share capital. The London-headquartered firm gained substantially with the investment as, in last December, the cumulative investment was valued at $27.1 million.
According to the earlier deal, SafeCharge agreed with Nayax's founding shareholders that they will buy back its shareholding in Nayax by the end of 2022, which is now extended to 2024. That was done for a consideration equal to the firm’s cumulative investment of $24.5 million plus nine percent interest per year, calculated from February 15, 2018, until payment is received.
Put and Call Options Available
The announcement also stated that the investment deal further included the grant of a put and call option between the parties involved. However, it will be exercisable from February 15, 2020, up to 36 months post. The purchase price of the put option would be at a value equal to the investment amount plus nine percent interest per year, and the purchase price of the call option would be at a value of twice the investment amount.
Earlier this month, the London-listed firm has appointed the founder and the former-CEO of FINTECH Circle Susanne Chishti as a non-executive director to its board of directors.
