According to the terms of the deal, shareholders of Nuvei will receive $34 per share in cash, which represents nearly 56% premium over the Canadian payment processer’s unaffected closing share price of $21.76 on the Nasdaq Global Select Market on 15 March 2024
Nuvei to be acquired Advent International in an all-cash deal. (Credit: Pete Linforth from Pixabay)
Nuvei has agreed to be acquired by private equity investor Advent International in a deal that values the Canadian fintech company at an enterprise value of around $6.3bn.
According to the terms of the definitive arrangement agreement, shareholders of Nuvei will receive $34 per share in cash.
The consideration represents nearly 56% premium over the Canadian fintech firm’s unaffected closing share price of $21.76 on the Nasdaq Global Select Market on 15 March 2024.
In line with the transaction, Nuvei’s existing shareholders Philip Fayer, Novacap, and CDPQ will roll about 95%, 65%, and 75%, respectively, of their shares in the company.
Upon the closing of the deal, these parties are anticipated to get an aggregate of approximately $560m in cash for the shares sold.
Philip Fayer, Novacap and CDPQ will indirectly own or control about 24%, 18% and 12% stakes respectively in the proposed company.
Nuvei has developed a modular and scalable technology to enable companies to accept next-gen payments, offer all options of payouts, and benefit from issuing cards, banking, risk, and fraud management services.
Fayer said: “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.”
Following completion of the merger, Nuvei’s shares will be delisted from both the Toronto Stock Exchange and the Nasdaq with the Canadian fintech becoming a private company.
According to Nuvei, the deal will help it gain benefits from the significant resources, operational, and sector expertise along with the capacity for investment provided by Advent International.
Advent International managing director Bo Huang said: “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.”
Subject to court approval and customary conditions, including receipt of key regulatory approvals, the transaction is anticipated to be completed in late 2024 or Q1 2025.