Nuvei acquired by Advent International in $6.3bn deal

The US private equity firm has signed a definitive agreement to acquire the Canadian payments processor in a deal worth $6.3bn

The confirmation of the deal comes following reporting last month by both the Wall Street Journal and Reuters that Nuvei, the Montreal-headquartered paytech, was in advanced talks to be bought out by the firm.

Nuvei’s shareholders will be offered $34 per share by Advent International, which is a 56% premium on the company’s 15 March share price of $21.76. The deal will be completed through an all-cash transaction, which will result in the paytech being delisted from the Toronto Stock Exchange (TSE) and Nasdaq. It’s been listed on the exchanges since September 2020 and October 2021, respectively.

Nuvei’s chairman and chief executive officer, Philip Fayer, is to remain in his leadership role of the new private company, allowing for much-needed continuity. He’ll hold a 24% indirect stake in it once the acquisition is complete. Existing shareholders Canadian private equity Novacap Management will hold a stake of 18%, and investment group CDPQ will hold a 12% stake.

Founded in 2003, Nuvei provides businesses with payment processing technology alongside banking, card issuing, and risk and fraud management services. The company has processed a total payments volume of more than $200 million in 2023, when it generated $1.2 billion in revenue.

The deal is anticipated to be closed by early 2025.

Fayer said: “This transaction marks the beginning of an exciting new chapter for Nuvei. 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.”

Bo Huang, managing director at Advent International, said: “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 payment industry.”

Image: Clay Banks on Unsplash

Robert Welbourn Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.