SafeCharge has extended its partnership with Nayax and will continue to invest in the payment solutions provider.
US.- Payments technology specialist SafeCharge has announced that in light of the success of its partnership with Nayax, the cashless payment solutions provider for the unattended machine industry, the acquiring agreement between the duo has been extended to the end of 2024.
SafeCharge has agreed with Nayax’s founding shareholders that they will, by the end of 2022, buy back the shareholding in Nayax for a consideration equal to the cumulative investment of US$24.5 million, plus 9% interest per year, calculated from February 15, 2018, until payment is received.
In December 2016, the group made an initial US$6m investment in Nayax. This was in exchange for approximately four per cent of Nayax’s issued share capital. At December 31, 2017, this initial investment was valued at US$8.6 million, including an unrealised gain of US$2.6 million that was recognised in other comprehensive income in FY2017.
In February 2018, the company invested a further US$18.5million in Nayax, taking the total investment by SafeCharge to US$24.5 million, representing approximately 11% of the issued share capital of Nayax. At 31 December 2018, this cumulative investment was valued at US$27.1 million.
The investments in Nayax by SafeCharge included the grant of a put and call option between the parties to the investment such that Nayax’s founding shareholders Yair Nechmad, Amir Nechmad and David Ben Avi granted SafeCharge a put option to sell its interest in Nayax. The Nayax founding shareholders were granted a call option to purchase SafeCharge’s interest in Nayax, each 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 per cent interest per year, and the purchase price of the call option would be at a value of twice the investment amount.
The option period to the agreement was varied on January 17, 2019, to enable SafeCharge to exercise the put option thereof.