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Canadian global payments fintech company to acquire Paya Holdings

Posted: Jan 12, 2023 12:17 Category: Americas , M&A Action , Payments , Posted by Lea Hogg

Nuvei Corporation will pay $1.30 billion in an all-cash deal worth $9.75 per share for the acquisition of  integrated payments and commerce solutions provider Paya Holdings. This is the company’s latest acquisition in the payments area.

Acquisition

Nuvei will pay for the acquisition with a combination of cash-on-hand and a committed umbrella loan in combination with $600 first lien secured interest facility. The transaction is expected to close by the end of the first quarter. It has been approved by the board of directors of the two companies and will be recommended to stockholders.

Financial profile of merged entity

Nuvei revealed that the deal would strengthen the financial profile of the two companies based on the total value of both businesses at $167 billion and a combined revenue of $1.10 billion for 12 months ending 30 September 2022.

Integrated B2B payment system

A spokesperson for Nuvei said that the acquisition fits with the company’s strategy to expand into new and emerging markets. It would strengthen its high-growth integrated payment opportunities through Paya’s 300 B2B vendor integrated platforms with robust front-end CRM and back-end account systems.

Nuvei’s links with the gaming sector

In August 2021 Nuvei also acquired sports betting payment technology provider Mazooma Technical Services. It supported the online gaming launch of Netherlands-based Holland Casino in the Netherlands in October 2021 and launched a strategic partnership with the North American gaming operator Gan.

Background

Nuvei is a global payments fintech company with headquarters in Montreal. It provides businesses with payment options including card issuing, banking and management of risk and fraud.

Jeff Hack, CEO of Paya

Nuvei has over 50,000 customers and went public on the Toronto Stock Exchange in September 2020. The IPO raised $700 million, which was then the highest amount raised by a tech company in Toronto Stock Exchange’s history.

Paya Holdings provides integrated payment solutions to businesses facilitating user-friendly and seamless payments backed by extensive vertical knowledge, advanced technology extensive customer support. In 2020 Paya began trading on the NASDAQ. The company processes a payment volume of over $40 billion with over 100,000 customers across 2,000 distribution partners.

Comments from CEOs

Philip Fayer, Chairman and CEO of Nuvei, 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 B2B.

Philip Fayer, Chairman and CEO of Nuvei

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.”

Jeff Hack, CEO of Paya added “We are pleased to have reached this transaction with Nuvei, which is a testament to the incredible talent at Paya. It 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.”

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