The all-cash transaction is expected to cost Nuvei little under USD 10 per share for total consideration of around USD 1.3 billion. The acquisition is set to help Nuvei evolve by creating a preeminent payment technology provider with a strong position in the global ecommerce market, as well as in the markets of integrated payments and B2B. Moreover, it will accelerate the Canadian fintech’s integrated payment strategy while diversifying its business into new key verticals and help it grow financially.
According to Nuvei, the transaction will enhance its ability to execute on high-growth integrated payment opportunities, given that Paya’s deep software integrates with over 300 independent software vendor platforms and end-to-end commerce solutions allow Nuvei to capitalise on the domestic and global software-led market opportunity.
According to the Bain Future of Payments report, integrated payments counts for the highest-growth card payments distribution channel in the US. In 2021, only 41% of new merchants in the country were signed from the integrated payments channel, which offers a sufficient market range to work with.
At the same time, Paya benefits from a strong presence in key verticals, including B2B goods and services, healthcare, non-profit, and education, which allows Nuvei to tap in the US-based company’s strategy and further expand its own capabilities into large and growing B2B sectors. This will allow Nuvei to reinforce its growth strategy and accelerate it by offering its services and solutions to Paya’s partners and customers in the US.
The transaction is subject to certain conditions, but Nuvei agreed to acquire all Paya outstanding shares for USD 9.75 per share, at a total evaluation of around USD 1.3 billion. The purchase price represents a 25% premium to the closing price on January 6th 2023, as well as a 30% premium to the 90-day volume-weighted average share price. The Canadian company is expected to finance the acquisition with a combination of cash on hand, an exiting credit line, as well as a new committed USD 600 million first lien secured credit facility.
In case Paya will accept to enter into an agreement with respect to a superior proposal, it will pay Nuvei a termination fee of around USD 38 million.
Paya is a listed company at NASDAQ and a provider of integrated payment and frictionless commerce solutions. It processes over USD 40 billion of annual payment volume across debit/ credit card, ACH, and check, which makes it one of the top providers of payment processing in the US. Paya also serves more than 100,000 clients through over 2,000 key distribution partners.
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