Fintech company Nuvei to acquire US payment solutions provider Paya

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.