Canadian fintech Nuvei to go private in $6.3bn deal with Advent International

In a significant move within the global payments industry, Nuvei Corporation (Nasdaq: NVEI) (TSX: NVEI) has announced a definitive arrangement to go private, with Advent International spearheading the all-cash transaction. The deal, valued at approximately US$6.3 billion, marks a pivotal shift for Nuvei, emphasizing its robust position in the fintech sector. This transition underlines the company’s continued commitment to growth and innovation, facilitated by the substantial backing from one of the world’s leading private equity firms.

The key points of the story about Nuvei Corporation being taken private by Advent International include:

1. Deal Overview: Advent International, a leading global private equity firm, has entered into a definitive arrangement to take Nuvei Corporation private in an all-cash transaction valued at approximately US$6.3 billion.

2. Shareholder Support: The transaction is supported by major shareholders, including Philip Fayer (Nuvei’s Chair and CEO), Novacap Management Inc., and CDPQ, indicating strong confidence in the deal’s strategic benefits.

3. Premium Offer: Shareholders are being offered US$34.00 per share, which represents a premium of approximately 56% over the closing price on the Nasdaq on March 15, 2024, and about 48% over the 90-day volume weighted average trading price.

4. Continued Leadership: Philip Fayer will remain as Nuvei’s CEO, ensuring continuity in leadership and strategic direction. The current leadership team is also expected to continue post-transaction.

5. Strategic Implications: The deal highlights Nuvei’s strong position in the global payments industry and is expected to accelerate growth, innovation, and market expansion with the backing of Advent’s resources and expertise.

6. Financial Highlights: Nuvei has demonstrated significant growth, processing over US$200 billion in total volume and generating US$1.2 billion in revenue in 2023.

7. Global Reach: Nuvei’s solutions cater to a wide range of industries across more than 200 markets worldwide, showcasing its extensive global footprint and scalability.

8. Transaction Conditions: The transaction is subject to shareholder approval, court approval, and customary closing conditions, including regulatory approvals, with an expected closing in late 2024 or early 2025.

9. Futuristic Outlook: The acquisition is seen as a positive development for Nuvei, providing it with the resources and strategic guidance to continue scaling globally and leading in the fintech space.

Advent International’s acquisition of Nuvei at US$34.00 per share represents a substantial premium over recent trading prices, highlighting the perceived value and future potential of Nuvei in the fast-evolving payments landscape. With the support of major shareholders, including Philip Fayer, Novacap Management Inc., and CDPQ, this deal not only underscores the confidence in Nuvei’s strategic direction but also promises to fuel further innovation and expansion.

Nuvei’s technological prowess, particularly its ability to process over US$200 billion in total volume and generate US$1.2 billion in revenue as of 2023, sets it apart in the global payments sector. The company’s comprehensive solutions, spanning next-gen payments, banking services, and fraud management, cater to a diverse clientele across more than 200 markets, showcasing its significant international footprint and scalability.

Philip Fayer, Nuvei’s Chair and Chief Executive Officer, will continue at the helm, ensuring continuity in leadership and vision. Fayer’s statement highlights the transformative nature of this deal, envisaging accelerated customer growth and enhanced technological advancements as key outcomes.

The transaction is emblematic of the ongoing consolidation and strategic realignments in the fintech space, where companies like Nuvei are increasingly recognized for their innovative platforms and global reach. Advent International’s involvement is particularly noteworthy, bringing to the table extensive resources and a deep understanding of the payments industry, which is expected to propel Nuvei’s growth trajectory.

Stakeholders, including Novacap and CDPQ, have reiterated their support, emphasizing Nuvei’s consistent performance and adaptability. Their continued investment and commitment reflect a collective belief in the company’s strategic initiatives and its potential to redefine the payments landscape.

The transaction between Nuvei and Advent International is a landmark deal that not only highlights the growing interest in fintech companies but also signals a positive outlook for the sector. Nuvei’s comprehensive solutions and expansive market reach, combined with Advent’s strategic and financial backing, position the company for significant global expansion and innovation.

The consolidation within the fintech sector, as exemplified by this transaction, underscores the importance of scalable, flexible payment solutions in driving business growth and adapting to the rapidly changing digital economy. As companies like Nuvei continue to evolve, their role in shaping the future of global commerce and payments will undoubtedly grow, marking an exciting new chapter for the industry.