- Montreal-based fintech company Nuvei Corp. (TSX:NVEI; NDAQ:NVEI) announced Monday that it has agreed to be taken private by Advent International
- The all-cash transaction values Nuvei at an enterprise value of approximately US$6.3 billion.
- Philip Fayer will remain Nuvei’s chairman and chief executive officer and will lead the business in all aspects of its operations.
- Shares of Nuvei Corp. were up 2.64 per cent, trading at C$43.95
Montreal-based fintech company Nuvei Corp. (TSX:NVEI; NDAQ:NVEI) announced Monday that it has agreed to be taken private by Advent International in an all-cash transaction that values Nuvei at an enterprise value of approximately US$6.3 billion.
Advent, one of the world’s largest and most experienced global private equity investors, will acquire all the issued and outstanding subordinate voting shares of Nuvei and any multiple voting shares that are not rollover shares for US$34 per share, in cash, according to a news release.
Philip Fayer will remain Nuvei’s chairman and chief executive officer and will lead the business in all aspects of its operations. Nuvei’s current leadership team will also continue after the conclusion of the transaction, and the company will still be based in Montreal.
“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 capitalize on the significant opportunities that this investment provides,” Fayer said in a statement.
“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.”
Rumours of the sale began with a Wall Street Journal report on March 17 about a possible buyout. Nuvei then issued a statement acknowledging it had received expressions of interest and the board of directors had formed a special committee of independent directors to evaluate and consider such expressions of interest and any other strategic alternatives that may be available in the best interest of the company.
Nuvei stock had closed at C$29.48 before the WSJ report, and it was trading at C$43.95 as of 2:11 pm ET Monday.
The definitive arrangement agreement with Advent has the support of each of the Nuvei’s holders of multiple voting shares: Fayer, certain investment funds managed by Novacap Management Inc. and pension fund company Caisse de dépôt et placement du Québec (CDPQ).
As an advanced technology provider in the global payments industry, Nuvei accelerates the growth of its customers and partners around the world through a modular, flexible and scalable solution that enables leading companies across all verticals to accept next-gen payments, offer all payout options, and benefit from card issuing, banking, risk and fraud management services.
“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,” Bo Huang, a managing director at Advent, said in a statement. “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 capitalize on emerging opportunities to help shape the future of the payments industry.”
Nuvei had processed more than US$200 billion in total volume, and US$1.2 billion in revenue, according to its recent 2023 annual financial statements.
The US$34 per share price represents a premium of approximately 56 per cent to the closing price of the subordinate voting shares on the Nasdaq Global Select Market on March 15, 2024, the last trading day prior to media reports concerning a potential transaction involving the company and a premium of approximately 48 per cent to the 90-day volume weighted average trading price per subordinate voting share as of such date.
Fayer, Novacap and CDPQ have agreed to roll approximately 95 per cent, 65 per cent and 75 per cent, respectively, of their shares and are expected to receive in aggregate approximately US$560 million in cash for the shares sold on closing. Fayer, Novacap and CDPQ are expected to indirectly own or control approximately 24 per cent, 18 per cent and 12 per cent, respectively, of the equity in the resulting private company.
News of the deal prompted Halper Sadeh LLC, an investor rights law firm, to investigate whether the sale of Nuvei Corp. is fair to Nuvei shareholders.
About Nuvei
Nuvei is a Canadian fintech company offering modular, flexible and scalable payment processing technology in 150 currencies across hundreds of payment methods in more than 200 markets. One of its more famous investors is Canadian actor Ryan Reynolds.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 415 private equity investments across more than 40 countries and regions, and as of Sept. 30, 2023, had US$91 billion in assets under management.
Shares of Nuvei Corp. (TSX:NVEI; NDAQ:NVEI) were up 2.64 per cent, trading at C$43.95 as of 2:11 pm ET.
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