Nuvei goes private in $6.3bn Advent acquisition

July 2024 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

July 2024 Issue

Four years after its listing on the Toronto Stock Exchange, payments technology firm Nuvei Corporation is being taken private by US global private equity investor Advent International in a transaction valued at approximately $6.3bn.

Under the terms of the definitive agreement, Nuvei’s shareholders will receive $34 per share in cash, representing a premium of approximately 56 percent over Nuvei’s unaffected closing share price of $21.76 on the Nasdaq Global Select Market on 15 March 2024.

Following completion, Nuvei will be delisted from each of the Toronto Stock Exchange and the Nasdaq. Canadian shareholder Philip Fayer, chair and chief executive of Nuvei, Novacap and CDPQ will indirectly own or control approximately 24, 18 and 12 percent respectively of the equity in the resulting private company as part of the agreement.

One of the most advanced technology providers in the global payments industry, Nuvei accelerates the growth of its customers and partners around the world through a modular, flexible and scalable solution that enables leading companies across all verticals to accept next-generation payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services.

Nuvei’s global reach extends to more than 200 markets across the globe, with local acquiring in 50 markets and connectivity to 680 local and alternative payment methods.

“This transaction marks the beginning of an exciting new chapter for Nuvei,” said Mr Fayer. “We are glad to partner with Advent to continue to deliver for our customers and employees and capitalise on the significant opportunities that this investment provides.

“Our strategic initiatives have always focused on accelerating our customers’ revenue, driving innovation across our technology, and developing our people,” he continued. “Bringing in a partner with such extensive experience in the payments sector will continue to support our development.”

Upon completion of the acquisition – which has been unanimously recommended to Nuvei shareholders by Nuvei’s board of directors – Nuvei will continue to be based in Montreal. Mr Fayer will remain as chair and chief executive and will lead the business in all aspects of its operations. Nuvei’s current leadership team will also remain following the conclusion of the transaction.

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. As a longstanding investor in the payments space, Nuvei will 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 eCommerce, 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.”

Barclays Capital Inc. acted as exclusive financial adviser to Nuvei, with Stikeman Elliott LLP and Davis Polk & Wardwell LLP as legal advisers.

The transaction is expected to close in late 2024 or in the first quarter of 2025.

Mr Huang concluded: “We look forward to collaborating closely with Nuvei to capitalise on emerging opportunities to help shape the future of the payments industry.”

Fraser Tennant