On Track Innovations has announced that its subsidiary PARX Ltd., provider of the contactless EasyPark payment solution, will acquire the assets of fellow parking solutions provider Ganis Systems.
According to OTI, the acquisition will result in a new in-vehicle parking solution with a back-office network that utilizes city resources, delivers traffic management tools and provides online real-time access to parking information.
The transaction will also enable OTI to leverage Ganis’ existing projects and business opportunities in the European and North American parking markets, as well as integrate some of Ganis’ products and intellectual property that complement PARX’s existing solutions.
The deal, expected to close on Jan. 4, stipulates that OTI will pay Ganis $400,000 in cash and hand over 130,521 ordinary shares of OTI. In addition, under an earn-out agreement, Ganis may be entitled to certain earn-out payments of up to an additional $450,000 over the next three years, based on reaching certain success criteria determined by the companies. Under the terms of the agreement, the chairman of board of OTI will be granted an irrevocable proxy to vote the shares that are issued as part of the transaction.
Ganis Systems, headquartered in Nes Ziona’s Science Park, Israel, specializes in in-vehicle parking meters. According to OTI, Ganis products are being used by more than 100 cities and university campuses in more than 10 countries worldwide.