Advent set to Acquire Nuvei in US$6.3bn Deal

The private equity investment firm, Advent, looks set to acquire Canadian paytech Nuvei in a deal slated to be worth US$6.3bn. 

The deal will see Nuvei, which is backed by Hollywood actor-cum-entrepreneur Ryan Reynolds, become privately held after four years of being listed on the Toronto Stock Exchange. 

Existing shareholders Philip Fayer – who leads Nuvei as Chair and CEO – Novacap and CDPQ, will all roll over a majority of their existing equity, which means they will still control 24%, 18% and 12% of equity respectively in Nuvei.

Nuvei: Supporting growth with the power of tech

Today, Nuvei is a global leader in payments, supporting the growth of its customers and partners around the globe through its modular and flexible payments solution, which enables companies to offer next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. 

Since its inception in 2003, Nuvei has expanded from its native Canada to offer paytech solutions in more than 200 markets, with local acquiring in 50 markets and connectivity with up to 680 local and/or alternative payment methods. 

In February this year, Nuvei spoke to FinTech Magazine about the ways it is helping companies optimise revenue streams through its proprietary technologies. 

Now that it is set to be acquired by Advent, CEO Philip Fayer comments: “This transaction marks the beginning of an exciting new chapter for Nuvei, and we are glad to partner with Advent to continue to deliver for our customers and employees and capitalise on the significant opportunities that this investment provides.

"Our strategic initiatives have always focused on accelerating our customers' revenue, driving innovation across our technology, and developing our people. Bringing in a partner with such extensive experience in the payments sector will continue to support our development."

Advent & Nuvei: Details of the deal

At US$34.00 per share in cash, Nuvei shareholders have been offered a 56% premium to the stock's last close (March 15, 2024) on the Nasdaq – a time before the media started reporting on the prospect of an acquisition. 

The price per share offered by Advent also represents a premium of approximately 48% over Nuvei's 90-day volume weighted average trading price as of 15 March 2024 – resulting in a total acquisition cost of US$6.3bn.

The deal comes after a period in late 2023 where M&A activity has slowed, but this acquisition, alongside others such as Capital One’s proposed takeover over Discover Financial for US$35.3bn, points towards an investment market that is, perhaps, turning a corner.

Bo Huang, a Managing Director at Advent, adds: "Nuvei has created a differentiated global payments platform with an innovative product offering that serves attractive payments end markets like global eCommerce, B2B and embedded payments.

"Our deep expertise and experience in payments give us conviction in the opportunity to support Nuvei as it continues to scale from its base in Canada as a global player in the space.

“We look forward to collaborating closely with Nuvei to capitalise on emerging opportunities to help shape the future of the payments industry."

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