PARX Expands International Presence in Europe, North America Parking Markets Through the Acquisition of Ganis Systems' Assets

On Track Innovations Ltd. (OTI), a global leader in contactless smart card solutions, has entered into an agreement through its subsidiary, PARX Ltd., to acquire the assets of Ganis Systems Ltd. (Ganis), a provider of parking solutions.
The transaction will benefit OTI's marketing and product offering. On the marketing side, it will enable OTI to leverage Ganis' existing projects and pipeline of opportunities mainly in the European and North American parking markets. OTI plans to bring its financial and implementation capabilities into selected projects and opportunities Ganis built over the years, offering customers a strong and stable company that can support their parking needs in the long term.

OTI will integrate some of Ganis' products and intellectual property that complement PARX's existing solutions to increase PARX's product offering, and by that offer municipalities and parking authorities a complete and unique turnkey solution with a comprehensive back-office network, advanced parking payment collection system offering the utmost utilization of city resources, improved traffic management, efficient enforcement and on-line access to real-time parking information.

In consideration for this acquisition, expected to close on or about January 4, 2011, OTI will pay Ganis $400,000 in cash and will issue to it 130,521 ordinary shares of OTI. The ordinary shares will be subject to lock-up, where 26,760 ordinary shares will be free from lock up seven months after the closing date and an additional 34,587 ordinary shares will be released from lock-up 12, 18 and 24 months after the closing date. 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 (or the board) will be granted an irrevocable proxy to vote the shares that are issued as part of the transaction.

Commenting on the acquisition, Oded Bashan, Chairman & CEO of OTI said, "The acquisition of the assets of Ganis is in line with OTI's strategy of focusing on products and projects which generate recurring revenues and support our efforts to market our wise parking solutions. The transaction provides OTI with a platform to readily access new international parking markets together with enhancing our product offering, strengthening our IP portfolio and ultimately resulting in a superior turnkey parking management solution."

About Ganis

Ganis Systems Ltd., founded in 1991, is involved in the development, manufacturing and marketing of special parking solutions based on personal parking meters. Headquartered in Nes Ziona's Science Park, Israel, Ganis is active in the field of in-vehicle parking meters. Ganis products are being used by over 100 cities and university campuses in more than 10 countries world-wide.

About OTI

Established in 1990, OTI designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, payments, mass transit ticketing, parking and loyalty programs. OTI has a global network of regional offices to market and support its products. The company was awarded the Frost & Sullivan 2005 and 2006 Company of the Year Award in the field of smart cards. 
On Track Innovations Ltd.
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