Nuvei Corporation, a Canadian fintech company, and Paya Holdings Inc., a leading U.S. provider of integrated payment and commerce solutions, have entered into a definitive agreement to acquire Paya at USD 9.75 per share for approximately $1.3 billion in cash.
Philip Fayer, Nuvei's Chair and Chief Executive Officer, said, "The proposed acquisition of Paya is a powerful next step in the evolution of Nuvei, creating a preeminent payment technology provider with strong positions in global eCommerce, Integrated Payments and business-to-business (B2B)." He further stated, "The proposed transaction will combine two people-first, technology-led, high-growth payment platforms. It will accelerate our integrated payment strategy, diversify our business into key high-growth, non-cyclical verticals with large addressable end markets and enhance the execution of our growth plan."
(Source- Globe Newswire)
The strategic rationale and benefits of the transaction are as follows:
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It improves Nuvei's capability to capitalize on high-growth integrated payment opportunities
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Expands Nuvei's business over non-cyclical, high-growth, underpenetrated end markets with substantial estimated TAMs.
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Increases Nuvei's reach into the booming B2B market
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Develops Nuvei's growth plan
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Strengthens Nuvei's strong financial profile
Nuvei's purchase of Paya is expected to close by the end of the first quarter of 2023. The purchase price is 25% above the closing price on January 6, 2023. The company will finance the transaction using cash, existing credit facilities along with a $600 million first-lien-secured credit facility.
The list of advisors includes Barclays Capital Inc., BMO Capital Markets, RBC Capital Markets, and Evercore Group LLC.
About Nuvei
Nuvei, a Canadian fintech company, accelerates global clients' businesses. It is the payment technology partner that delivers unified commerce solutions and expertise to its clients and helps them capture every payment opportunity that comes their way. Leading organizations can take next-gen payments, offer all payout choices, and use card issuing, banking, risk, and fraud management services with Nuvei's modular, adaptable, and scalable platform. The company connects businesses to customers in over 200 markets through local acquisition in 47 markets, 150 currencies, and 586 payment methods.
About Paya
Paya is a primary provider of integrated payment and frictionless commerce solutions that help clients accept and process payments, receive money faster, and improve operations. The company is the top U.S. payment processor that processes about $40 billion in credit/debit card, ACH, and checks payments annually. It serves over 100,000 customers through 2,000 major distribution partners in high-growth verticals like healthcare, education, non-profit, government, utilities, and other B2B end markets.