Canadian fintech business Nuvei Corporation has agreed to acquire US integrated payment and commerce solutions provider Paya Holdings for $1.30bn.
Nuvei said the all-cash transaction, worth $9.75 per share, would strengthen its ability to execute on high-growth integrated payment opportunities, with Paya having software integrations in place with more than 300 independent software vendor platforms.
The fintech business also said the proposed acquisition would diversify its operations across high-growth markets, as well as expand its capabilities into both large and growing B2B operations and amplify its existing growth strategy.
In addition, Nuvei said the deal would help to reinforce its own financial profile, noting that on a combined basis for the 12 months to September 30, 2022, combined total volume of the businesses was approximately $167.0bn, with combined revenue at $1.10bn.
The transaction has been unanimously approved by each party’s board of directors, and the Paya board intends to recommend the transaction to stockholders. Should the proposed deal progress as expected, the transaction is expected to close by the end of Q1.
However, the deal also features customary termination provisions for both parties, including an allowance for Paya to accept and enter into an agreement with respect to a superior proposal. Should this occur, Paya would pay Nuvei a termination fee of approximately $38.0m.
Nuvei expects to finance the acquisition with a combination of cash on hand, an existing credit facility and a new committed $600.0m first lien secured credit facility.
Next step for Nuvei
“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,” Nuvei’s chairman and chief executive Philip Fayer said.
“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.”
Paya’s chief executive Jeff Hack added: “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 proposed deal marks Nuvei’s latest acquisition in the payments area, with the business having also purchased US-focused gaming and sports betting payment technology provider Mazooma Technical Servicesin August 2021.
Nuvei’s links with the gambling industry go further, with the business having supported Holland Casino to launch its online gaming offering in the Netherlands in October 2021, while Nuvei is also working with GAN in North America.