Global private equity firm Advent International has agreed to take Canadian fintech firm Nuvei private in an all-cash deal that values the firm at approximately $6.3 billion.
The agreement has the support of Nuvei’s existing shareholders including Nuvei chair and CEO Philip Fayer, certain investment funds managed by Novacap Management, and Canadian institutional investor CDPQ, who will indirectly own or control approximately 24%, 18% and 12%, respectively, of the equity in the resulting private company as part of the agreement.
To that end, Fayer, Novacap and CDPQ have agreed to roll approximately 95%, 65% and 75%, respectively, of their shares and are expected to receive approximately $560 million in cash for the shares sold on closing.
As per the deal, shareholders are set to receive $34 per share in cash, representing a premium of 56%. Post closing of the transaction, Fayer will continue to lead Nuvei as chair and CEO, alongside the broader leadership, with the company continuing to be headquartered in Montreal.
Founded in 2003, Nuvei enables companies to accept payments, offer payout options and use its card issuing, banking, risk and fraud management services. It claims its services are used in more than 200 markets across the globe, with local acquiring in 50 markets and connectivity to 680 local and alternative payment methods. In 2023, the company claims it had processed more than $200 billion in total volume, and generated $1.2 billion in revenue.
Through the deal with Advent, a notable investor in the payments space, Nuvei hopes to “benefit from the significant resources, operational, and sector expertise, as well as the capacity for investment provided by Advent”.
“Nuvei has created a differentiated global payments platform with an innovative product offering that serves attractive payments end markets like global e-commerce, B2B and embedded payments,” said 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 capitalise on emerging opportunities to help shape the future of the payments industry.”
The offer is subject to approval by all shareholders, by court, and by key regulators worldwide.
