Payment technology provider Nuvei forms special committee to consider potential buyout

Sources are reporting that Advent International are in talks to buy Nuvei

Canadian fintech firm Nuvei has confirmed it has set up a “special committee” to consider expressions of interest for the payment technology – including a potential go-private transaction.

The company, which is backed by Deadpool star Ryan Reynolds, made the comments following reports by multiple sources that private equity firm Advent International is in talks to buy Nuvei, which has a market capitalization of $3 billion.

“The Company cautions readers that it has not entered into any agreements or understandings to effect a privatization or similar transaction,” said Nuvei in a press release. “The Special Committee is continuing its evaluation of the proposals received to date and the strategic alternatives available to the Company, and no decision has been made at this time whether to pursue a transaction or maintain the status quo.”

Nuvei provides payment technology to a large array of companies globally including betting operators GAN and 888 in Ontario.

It raised $700 million when it went public in September 2020 and its stocks reached a peak of C$170 ($125.54) in 2021. On Friday stocks closed at C$29 while New York-listed shares closed at $21.76.

This month also saw Nuvei release a full-year 2024 revenue outlook of $1.34 billion to $1.37 billion, compared with the $1.19 billion it recorded last year. In the last quarter of 2023 the company’s per-share adjusted earnings remained flat at $0.47, while revenue increased 46% to $321.5.

Last year the company acquired commerce solutions company Paya Holdings for $1.3 billion which drew criticism from Spruce Point Capital Management who held a short position in the company.

As well as the offer from Advent, Nuvei also confirmed it has engaged in discussions regarding a potential transaction that would involve continued significant ownership by current shareholders, including Chief Executive and founder Phil Fayer.

Given the nature of the process, Nuvei says that it does not intend to make any further comments unless otherwise required to do so.

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