Canadian fintech company Nuvei has agreed to acquire Paya Holdings, a US-based payment and commerce solutions provider, in an all-cash transaction valued at around $1.3 billion.

The proposed acquisition is anticipated to create a preeminent payment technology provider in global ecommerce, integrated payments, and business-to-business (B2B) segments.

The transaction is expected to diversify Nuvei’s business across high-growth, underpenetrated, and non-cyclical end markets.

In addition, the deal is expected to help Nuvei increase its ability to perform on high-growth integrated payment opportunities and capitalize on the national and international software-led market prospect.

Paya is an integrated payment and frictionless commerce solutions provider and processes more than $40 billion of annual payment volume across credit/debit card, ACH, and check in the US.

Philip Fayer — Nuvei Chair and CEO, commenting on Nuvei acquisition of Paya, 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).

“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.”

Ended September 30, 2022, Paya’s last twelve months net income and revenue were $9.5 million and $277 million, respectively.

Nuvei anticipates the proposed transaction to deliver up to $21 million of estimated run-rate cost synergies in two years.

Under the termination provisions of the deal, Paya will pay Nuvei a termination fee of around $38 million, in case the former terminates the transaction to accept and enter into an agreement with respect to a superior proposal.

Commenting on Nuvei acquisition of Paya, Jeff Hack — Paya CEO said: “We are pleased to have reached this transaction with Nuvei, which is a testament to the incredible talent at Paya, and will deliver immediate and significant cash value to Paya shareholders.

“We continue to see strong momentum in our high-growth and underpenetrated middle market partners in durable end-markets, and believe that Nuvei’s resources will enable us to continue our mission of solving complex business problems with easy-to-use payment solutions.”

The completion of the transaction is expected by the end of the first quarter of 2023, subject to certain customary closing conditions.

  Canada, Fintech industry news, Jeff Hack, Nuvei, Paya Holdings, Philip Fayer, USA