Highlights:
Businesses can easily integrate the platform into their applications through various methods. Small and midsized businesses with limited technical expertise can benefit from Nuvei’s managed checkout page, which can be easily integrated into an online store without coding.
Nuvei provides a tool to assist E-commerce marketplace operators in disbursing payments to third-party merchants operating on their platforms.
A leading provider of payment processing software, Nuvei Corp., has agreed to a USD 6.3 billion privatization agreement with investment firm Advent International.
The Nuvei privatization agreement marked it as an all-cash deal, valuing the company at USD 34 per share, representing a significant 56% premium over its last unaffected stock price.
The offer holds a majority stake in the software maker, backed by investment firms Novacap and CDPQ, alongside Nuvei Chief Executive Officer Philip Fayer. As part of the deal, they will sell approximately USD 560 million worth of shares, resulting in a combined 54% stake in the company following the completion of the acquisition.
Founded in 2003 by Fayer and backed by Montreal, Nuvei has raised over USD 60 million from investors, including Goldman Sachs. Subsequently, Nuvei went public not once but twice. Initially, the company listed its shares on the Toronto Stock Exchange in 2020, followed by a Nasdaq listing the subsequent year. The two IPOs collectively raised USD 1.1 billion.
Nuvei offers a cloud platform to assist E-commerce companies, brick-and-mortar retailers, and other businesses in processing payments. This platform can seamlessly integrate into a website or application to facilitate its checkout page. Nuvei automatically tailors the checkout page’s language and payment currency to match the preferences of each customer.
Businesses can easily integrate the platform into their applications through various methods. Small and midsized businesses with limited technical expertise can benefit from Nuvei’s managed checkout page, which can be easily integrated into an online store without coding. The company provides an application programming interface (API) for larger organizations seeking customization capabilities.
After the Nuvei privatization agreement, the company also extended its presence to other segments of the financial technology market. Nuvei offers payment devices tailored for retailers to facilitate in-store purchases alongside an application that enables the utilization of smartphones or tablets for the same purpose. Nuvei provides a tool to assist E-commerce marketplace operators in disbursing payments to third-party merchants operating on their platforms.
“Nuvei has created a differentiated global payments platform with an innovative product offering that serves attractive payments end markets like global eCommerce, B2B and embedded payments,” remarked Bo Huang, Managing Director of Advent. “Our deep expertise and experience in payments give us conviction in the opportunity to support Nuvei as it continues to scale from its base in Canada as a global player in the space.”
The 56% premium offered by Advent to acquire Nuvei reflects the software maker’s robust growth in recent quarters. In the final quarter of 2023, Nuvei witnessed a remarkable 46% year-over-year surge in revenue, amounting to USD 321.5 million. Moreover, the total value of transactions processed by its platform soared even higher, experiencing a 59% increase to USD 203 billion.
Following the closure of the acquisition, Nuvei’s Fayer will retain the company’s leadership. Advent anticipates finalizing the transaction in late 2024 or the first quarter of 2025.
