Nayax acquires Brazilian paytech VMtecnologia to propel LatAm expansion
Israeli fintech Nayax has acquired VMtecnologia, a payment technology provider specialising in self-service retail, in a deal that could be worth approximately $27 million.
Nayax completes acquisition of VMtecnologia in Brazil
Based in Curitiba, Brazil, VMtecnologia offers payment technology for autonomous points of sale – such as vending machines, claw crane machines, laundry terminals and micro markets – through its VMpay private label system.
Nayax initially announced its intention to purchase the vendor in March, and has now settled the first payment of the transaction, totalling around $13 million, through its cash reserves.
The company has three years to deliver the outstanding balance of the deal – around $9 million – contingent upon management retention and revenue growth, which it is expected to complete through either cash or equity.
The deal also includes a further potential payment of around $5 million based on the completion of “significant three-year growth objectives”, which is to be paid primarily in stock and brings the total potential consideration for the deal up to $27 million.
For Nayax, which offers a “global commerce enablement, payments and loyalty platform designed to help merchants scale their business”, the acquisition and intended integration of VMtecnologia and its technology is set to fuel its expansion into Latin America, supported by the vendor’s 2,400-strong retailer network, which is said to currently penetrate “all 27 states in Brazil”.
VMtecnologia claims to have recorded approximately $8.5 million in revenue last year with an EBITDA margin “exceeding 30%”. It boasts a workforce of 130 employees, who are now set to join Nayax alongside CEO Eduardo Muniz.
Yair Nechmad, CEO and chairman of Nayax, describes the acquisition as “a significant milestone” in its expansion efforts, and says the company is now due to make “substantial advancements in the automated self-service payments space in Latin America”.
