Canadian payments provider Nuvei to go private with Advent International

Deal gives Nuvei enterprise value of $8.5 billion

Nuvei Corporation has announced that it has signed a deal to be taken private by U.S. private equity firm Advent International.

The all-cash transaction gives the Canadian fintech firm an enterprise value of around $6.3 billion USD ($8.5 billion CAD).

Nuvei, which will continue to be based in Montreal, says the deal has the support of the company’s major shareholders: CEO and founder Philip Fayer, investment funds managed by Novacap Management Inc., and CDPQ, who collectively represent around 92% of the shareholder voting power. Fayer will remain Nuvei’s Chair and CEO and will lead the business in all operations, while Nuvei’s current leadership team will also continue following the conclusion of the deal.

“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,” said Fayer. “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.”

Fayer, Novacap and CDPQ will roll 95%, 65% and 75%, respectively, of their shares and are collectively expected to receive approximately $560 million USD ($780 million CAD) in cash for the shares that are sold on closing. The three parties will indirectly own or control approximately 24%, 18% and 12%, respectively, of the equity in the resulting private company. As part of the deal, Advent will acquire all issued and outstanding subordinate voting shares and multiple voting shares for $34.00 USD ($46.15 CAD) per share in cash.

Nuvei says it expects to benefit from Advent’s resources, operational, and sector expertise, as well as the capacity for future investment provided by Advent. Nuvei’s Board of Directors is unanimously recommending that shareholders vote in favour of the transaction.

“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,” added Bo Huang, a Managing Director at Advent. “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 looks to unlock future

The announcement of this deal comes weeks after Nuvei revealed it had formed a special committee to evaluate expressions of interest from potential buyers, following reports of the potential Advent deal breaking.

The payments technology provider being taken private also comes less than four years after it went public in what was the Toronto Stock Exchange’s largest tech IPO ever. At that time, in September 2020. Nuvei set a goal of raising $600 million USD ($814 million CAD today) but ended up with an $833 million ($1.1 million CAD today) IPO. At the time, Fayer said his main aim had been to reward his 800 employees with stock options and build capital for future mergers and acquisitions.

Nuvei says it has a presence in more than 200 markets across the world, with local acquiring in 50 markets and connectivity to 680 local and alternative payment methods. In Ontario, it provides payment technology to betting operators including GAN and 888 in Ontario. In 2023, it added Vancouver-born Deadpool actor  Ryan Reynolds to its investor ranks after closing a billion-dollar acquisition of U.S. payment and commerce solutions company Paya Holdings in February 2023.

In its recent 2023 annual financial statements, it announced it had processed $1.2 billion USD ($1.6 billion CAD) in revenue.

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