Canadian fintech Nuvei has announced its acquisition of US payments solution company Paya in a deal worth 1.7 billion CAD.
Nuvei announced the deal on Monday as it looks to expand in the US and enter new verticals. It says it expects to finance the acquisition with a combination of cash on hand, and an existing as well as a new $600 million USD credit facility.
“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”),” said Philip Fayer, Nuvei’s Chair and Chief Executive Officer.
Established in 2003 by Fayer, Nuvei provides tech-enabled payment solutions to merchants and partners. Its services include card issuing, banking, as well as risk and fraud management services. The startup’s customer base comprises firms that operate in the gambling, online retail, financial services, and travel sectors, among others.
“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.”
“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,” said Jeff Hack, Paya’s Chief Executive Officer.
“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.”
Nuvei went public on the Toronto Stock Exchange in September 2020 with a $700 million USD IPO. As did most of Canada’s largest tech firms, Nuvei has seen its share price decline over the past year, by about 55 percent, as the sector contracts amid the downturn. Nuvei is trading at $35 USD at press time; in contrast, its stock was priced at around $84 in January 2022.
