On Track Innovations Ltd, (OTI), announced that it has acquired, through  its subsidiary PARX Ltd.,  100% of the share capital of ID Parking, a Paris-based company that provides electronic parking solutions.  This acquisition is in accordance with OTI’s strategy of focusing on products and projects which generate high margin recurring revenues and supports OTI’s global efforts to market the EasyPark product.  The transaction provides OTI with a platform to readily access the French electronic parking payment market and offer multiple solutions for parking payment, including OTI’s patented in-vehicle electronic parking meter -- the EasyPark product.  The EasyPark business model is one in which revenues are generated from product sales, transaction fees and customer support.

PARX is OTI’s subsidiary responsible for marketing, operating and distributing advanced parking solutions, including the EasyPark TM product, in the international markets.  ID Parking, which will operate under the name of PARX France, currently provides electronic parking solutions for approximately 40 municipalities in France.  ID Parking was purchased for an aggregate purchase price of 750,000 euro, comprised of 250,000 euros in cash and 500,000 euros in OTI shares.  The OTI shares are subject to a lock-up arrangement, under which one third of those shares will be released from lock-up every six months following the closing date (for an aggregate period of 18 months).  According to the lock up arrangement, the number of shares will be calculated according to the actual share price at the time of the release; in the case that the share value exceeds 500K euros, a respective amount of shares will be forfeited, and if the value is less than 500K euros, OTI will pay the difference in cash. A maximum of up to 300,698 of OTI ordinary shares have been allocated to complete the transaction.

Commenting on the transaction, Oded Bashan, OTIs Chairman and CEO, said, "The transaction is in line with OTIs strategy to identify the most cost effective way in which to enter new markets.  This acquisition will allow OTI to enter the French parking market while saving time to market and leveraging the existing customer base."

Bashan added, “We will continue to maintain and expand PARX France’s customer base, while offering EasyPark as a next generation solution.”