Nuvei Corporation has entered a definitive agreement to acquire US payment and commerce solutions firm Paya Holdings for a consideration of $1.3bn.
The move is seen as a key next step for the Canadian fintech firm, which stated it will have an enhanced ability to execute high-growth opportunities following the acquisition.
Under the terms of the deal, Nuvei will pay in an all-cash transaction at a price of $9.75 per share, valuing Paya at $1.3bn.
This price represents a 25% premium on Paya’s share price at the time of the deal’s announcement and a 30% hike on its 90-day volume weighted average share price.
Funding the acquisition, Nuvei disclosed that it will pay through a mixture of cash on hand and via a new credit revolving facility worth $600m.
“The proposed acquisition of Paya is a powerful next step in the evolution of Nuvei, creating a preeminent payment technology provider with strong positions in global ecommerce, Integrated Payments and B2B,” said Philip Fayer, Nuvei’s Chair and Chief Executive Officer.
“The proposed transaction will combine two people-first, technology-led, high-growth payment platforms. It will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets and enhance the execution of our growth plan.”
Nuvei also noted that the acquisition will allow further growth in the US B2B payments space, which is expected to grow at 10%+ per year over the next three years and was labelled as an ‘undervalued sector’ by the firm.
Moreover, it stated that Paya’s software integrations with over 300 software firms will allow both domestic and international growth as it seeks software-led opportunities.
“We are pleased to have reached this transaction with Nuvei, which is a testament to the incredible talent at Paya, and will deliver immediate and significant cash value to Paya shareholders,” added Jeff Hack, Paya’s Chief Executive Officer.
“We continue to see strong momentum in our high-growth and underpenetrated middle market partners in durable end-markets, and believe that Nuvei’s resources will enable us to continue our mission of solving complex business problems with easy-to-use payment solutions.”