After experiencing a high north of $170 per share back in 2021, Montreal’s Nuvei was never able to recover on the public markets, with shares dipping below $20 toward the end of last year.
Thus, following ample recent speculation, the Ryan Reynolds-backed Nuvei is indeed going private.
Private equity firm Advent International has agreed to acquire the Canadian fintech in an all-cash deal valuing the firm at more than $6 billion.
Shareholders will receive US$34 per share in cash, according to a statement from Nuvei, which represents a premium of 56% over the firm’s closing share price of US$21.76 on the Nasdaq Global Select Market on March 15.
Fayer, Novacap, and CDPQ agreed to roll a majority of their shares. Fayer, Novacap, and CDPQ are expected own 24%, 18%, and 12% (respectively) of the newly private Nuvei.
Fayer, founder and CEO of Nuvei, will continue to lead his company, which he says will remain based in Montreal.
“This transaction marks the beginning of an exciting new chapter for Nuvei,” stated the chief.
Advent is a longstanding investor in the payments space.
“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. “Bringing in a partner with such extensive experience in the payments sector will continue to support our development.”
Bo Huang, a Managing Director at Advent, believes that “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.”
“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,” said Huang. “We look forward to collaborating closely with Nuvei to capitalize on emerging opportunities to help shape the future of the payments industry.”
A long-term shareholder, Novacap continues “to stand behind management’s proven dedication to innovation, efficiency, and market adaptation, which has consistently propelled Nuvei forward,” according to senior partner David Lewin.
“With our continued support, we entrust management to navigate the evolving landscape adeptly, driving expansion, and delivering on our shared commitment to long-term growth for Nuvei employees and customers,” said Lewin.
CDPQ first invested in Nuvei in 2017, three years before the fintech went public on the Toronto Stock Exchange in 2020.
“CDPQ is proud to have supported this Québec fintech leader at every stage of its growth, particularly through acquisitions on a global scale,” stated Kim Thomassin, executive vice president of the Quebec-based investment group. “We are delighted to accompany Nuvei once again as it embarks on this new chapter of its history, alongside recognized partners such as Advent, as well as existing shareholders Philip Fayer and Novacap.”
The transaction will be implemented by way of a statutory plan of arrangement under the Canada Business Corporations Act, subject to shareholder approvals, court approval, and customary closing conditions, according to a statement.
Founded in 2003, Nuvei’s fintech platform spans 150 currencies and 680 alternative payment methods.
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