Bank of Montreal leads USD 2.55 billion loan for Nuvei acquisition

The loan, with a seven-year term, is intended to fund the USD 6.3 billion leveraged buyout, as reported by Bloomberg citing anonymous sources. This financing would mark the largest deal of its kind since April, when a USD 2.6 billion loan was secured for KKR's acquisition of a Broadcom unit, according to Bloomberg. 

The first quarter of 2024 saw a significant increase in major mergers and acquisitions (M&A) deals, with the total value more than doubling compared to the same period the previous year, according to the Financial Times. In the payments sector, recent deal-making has emphasised expanded product offerings, B2B capabilities, and cross-border functionalities.

The initial acquisition announcement

Nuvei is a prominent technology provider in the global payments industry, offering modular solutions for businesses to accept various payment methods and manage related services such as risk and fraud management. With a presence in over 200 markets and connectivity to 680 payment methods, Nuvei processed more than USD 200 billion in total volume and generated USD 1.2 billion in revenue in its 2023 financial statements.

In April 2024, Nuvei announced a definitive arrangement agreement to be taken private by Advent International via an all-cash transaction. Specifically, the initial agreement involved taking Nuvei private in an all-cash transaction valued at approximately USD 6.3 billion, with the support of major shareholders including Philip Fayer, Novacap Management Inc., and CDPQ. It's also worth noting that the company will remain headquartered in Montreal.

At the time, it was also revealed that Nuvei's Chair and CEO will continue to lead the company post-acquisition, alongside the existing leadership team. Advent International, known for its investments in the payments sector, brought several resources and expertise to support Nuvei's growth initiatives. 

Nuvei's shareholders approved the acquisition at a meeting held on 18 June, following the company's recommendation in a proxy filing. The final deal represents a 42% increase from the initial proposed consideration by Advent.