May 29, 2024

Tech Stock

Nuvei’s $1.7 Billion Acquisition of Paya in CAD Deal

Nuvei, a FinTech firm in Montréal, has agreed to buy Paya Holdings for 1.7 billion USD. Nuvei announced its intention to acquire Paya for $9.75 USD a share on Monday, as the former seeks to expand in the United States and enter new verticals. It aims to finance the transaction with cash on hand and an ongoing and proposed 600 million USD term loan. Nuvei, founded in 2003 by Philip Fayer, offers merchants and partners tech-enabled payment solutions. Its offerings include card issuance, banking, and risk and fraud management. Customers of the venture include companies in the casino, financial services, online retail, and tourism industries.

Nuvei filed for a USD 700 million IPO on the Toronto Exchange in September 2020. Nuvei, like most of Canada’s major technology companies, has seen its stock price fall by around 55 percent in the last year as the sector fell throughout the downturn. It is trading at 35 USD as of press time; its stock was valued at roughly 84 USD in January 2022. Paya’s merger, according to Nuvei, will diversify the former’s company by expanding into markets that Paya now serves, such as B2B products and services, non-profit, education, and healthcare, as well as public and government utilities.

 

Paya, traded on the Nasdaq, has seen its share price rise by approximately 24 percent after learning of Nuvei’s intention to purchase the company. Fayer stated in a short report that the proposed Paya acquisition is a powerful step in Nuvei’s evolution, creating a renowned payment technology supplier with dominant positions in integrated payments, global e-commerce, and B2B. Nuvei’s proposed purchase of Paya is part of the company’s aggressive acquisition strategy, which focuses on integrating with enterprises providing financial technology.

To keep up with the latest developments in the world of fintech and for more fintech news, please visit https://worldfintechnews.com/.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *