Nuvei this week responded to recent media reports speculating that the publicly traded financial technology firm is considering going private.
The Canadian fintech confirmed that “the board of directors of the Company formed a special committee of independent directors to evaluate and consider . . . strategic alternatives that may be available under the circumstances in the best interest of the Company,” including the possibility of corporate privatization.
The company’s stock price skyrocketed 30% in one day in reaction to the speculation.
Nuvei stated that the company has “not entered into any agreements or understandings to effect a privatization or similar transaction,” but is “engaged in discussions with certain third parties in connection with a potential transaction.”
According to a statement from Nuvei, the appointed Special Committee is “continuing its evaluation of the proposals received to date and the strategic alternatives available,” but “no decision has been made at this time whether to pursue a transaction or maintain the status quo.”
The fintech has announced several recent collaborations, including Cash Pay, Plaid, Microsoft, and Adobe.
And recently, the firm unveiled tokenization technology to turbocharge its payments processing. This solution, integrated into Nuvei’s full stack platform, boosts payments security through protection against data exposure and fraudulent transactions.
By replacing sensitive card details, such as the primary account number, with a unique identifier, “tokenization offers significant security advantages over traditional encryption methods.” This approach has been proven to decrease fraud rates in the payments industry by up to 26%, the company claims.
Trading publicly on the Toronto Stock Exchange, Nuvei’s fintech platform spans 150 currencies and 680 alternative payment methods.
Nuvei was founded by CEO Philip Fayer as Pivotal Payments in 2003.
Leave a Reply