Advent International has acquired Nuvei to take it private. The Nuvei acquisition news came just two weeks after the announcement Nuvei was forming a team to evaluate advanced buyout transactions from interested “third parties,” including Advent. Advent is a private equity firm based in the US. Nuvei, initially listed on the Toronto Stock Exchange in 2020 (also listed on NASDAQ), is set to go private through a $6.3 billion acquisition, marking a significant transition just four years after its IPO.
Key Takeaways
- Acquisition Agreement: Advent International has agreed to buy Nuvei in a cash purchase deal worth $6.3 billion. This acquisition will take Nuvei private after four years of being a publicly traded company on NASDAQ and TSE. The transaction value is set at $34 per share, which is a premium of 56% over Nuvei’s share price on March 15.
- Leadership Continuity: Nuvei’s Chairman and CEO, Philip Fayer, will continue leading the company post-acquisition, ensuring a smooth transition. Equity stakes in the private entity will be distributed among CDPQ, Novacap, and Philip Fayer, with percentages of 12%, 18%, and 24%, respectively.
- Deal Timeline: The all-cash transaction is expected to conclude in late 2024 or early 2025, subject to approval from shareholders and regulatory bodies. Nuvei will maintain its headquarters in Montreal, reaffirming its commitment to its Canadian roots.
- Strategic Implications: The acquisition positions Nuvei among several Canadian tech firms transitioning from public to private entities. Philip Fayer emphasizes the potential for collaboration with Advent to enhance value for employees and customers, leveraging opportunities in the payments industry. Advent’s expertise in payments reinforces confidence in Nuvei’s growth trajectory, which aims to become a global leader in payment technology.
Nuvei Acquisition: Advent International to Take Nuvei Private for $6.3 Billion
The Canadian payment company backed by Ryan Reynolds, Nuvei, has announced that it has reached an acquisition agreement valued at $6.3 billion with Advent International, a private equity firm based in Boston, Massachusetts, United States. Advent will acquire Nuvei value of $34 per share, representing a significant 56% premium over Nuvei’s closing share price of $21.76 on March 15th.
This development follows last month’s news that Nuvei had formed a special committee to explore potential offers amid interest from Advent. With the acquisition, Nuvei’s Chairman and CEO, Philip Fayer, is set to continue leading the company, ensuring a smooth transition post-acquisition. Following the deal, equity stakes in the newly private entity will be distributed among CDPQ, Novacap, and Philip Fayer, holding 12%, 18%, and 24%, respectively.
Subject to approval from shareholders and regulatory bodies, this all-cash deal is anticipated to conclude by the end of 2024 or early 2025. Nuvei will continue to operate from its headquarters in Montreal, reaffirming its dedication to its Canadian origins.
This deal positions Nuvei as the latest addition to a growing lineup of Canadian tech firms transitioning from publicly traded entities to private. This list includes Dialogue Health Technologies, BBTV Holdings, MDF Commerce, Magnet Forensics, TrueContext, Q4 Inc., and others.
Philip Fayer, CEO of Nuvei, remarked that the deal signifies the start of a thrilling new phase for Nuvei. He expressed enthusiasm for collaborating with Advent to enhance value for their employees and customers further while leveraging the substantial opportunities presented by this investment. He added that their strategic endeavors have consistently aimed at boosting their customers’ earnings, spearheading innovation within their technology sphere, and fostering the growth of their team. Incorporating a partner with profound expertise in the payments industry will further bolster their progression.
Nuvei has established itself as a frontrunner in delivering payment technology to businesses, offering solutions that facilitate smooth payment processing regardless of customers’ locations or chosen payment methods. Advent International’s acquisition is set to enhance Nuvei’s capabilities and growth plans in the continuously evolving fintech industry.
Managing director Bo Huang at Advent stated that Nuvei has successfully established a unique global payments platform featuring innovative solutions catering to desirable end markets, including global e-commerce and embedded and B2B payments. Advent’s extensive knowledge and history in the payments sector reinforce their confidence in the potential to assist Nuvei in its growth from a Canadian foundation to a worldwide leader in this field. Huang expressed eagerness to work closely with Nuvei, seizing new opportunities to influence the evolution of the payments industry.
Earlier last year, Nuvei made headlines as it finalized a $1.3 billion acquisition of the payment platform Paya. The company aims to expand its presence in “high-growth” sectors such as nonprofits, healthcare, utilities, government, and other B2B markets.
The Wall Street Journal was the first to report that Nuvei had formed a team to evaluate potential deals by interested parties. Advent International was also highlighted as one of the interested buyers, which Nuvei later confirmed.
About Advent
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Established in 1984, Advent International is one of the leading and most seasoned global private equity firms. With a history of investing in over 420 companies spanning 42 countries since its inception, Advent International actively supports businesses in accessing new markets, adopting innovative technologies, launching products, and achieving growth.
The firm prides itself on a business approach centered around trust, diligently maintaining an open, honest, and inclusive work environment. Beyond private equity, Advent International offers services in investment advisory, wealth management, due diligence, and evaluation. As of September 30, 2023, it manages assets totaling $91 billion. With a global footprint, Advent International operates out of 15 offices located in 12 countries, employing over 295 investment professionals in North America, Europe, Latin America, and Asia.
About Nuvei
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Nuvei, based in Canada, is a fintech firm specializing in offering advanced payment solutions for businesses. The company’s innovative technology enables enterprises to process cutting-edge payments, provides various payout options, and includes additional services such as banking, card issuance, and managing risk and fraud. The aims of Nuvei’s services are to enhance sales conversion rates, minimize operational expenses, and expand the range of markets and payment methods available to businesses. Nuvei boasts compatibility with 634 payment methods, operates across more than 200 international markets, and supports 150 different currencies. Nuvei also provides round-the-clock live support and collaborates with some of the world’s top brands.
Nuvei launched its initial public offering (IPO) in September 2020, raising $700 million on the Toronto Stock Exchange. Following this, in October 2021, Nuvei successfully completed another Nasdaq IPO, raising $424.8 million.
Conclusion
The acquisition of Nuvei by Advent International for $6.3 billion marks a significant milestone in the trajectory of both companies. This strategic move underscores the dynamism and potential of the fintech sector, amplifying Nuvei’s position as a leader in payment technology solutions. With Nuvei’s transition from a public to a private entity, spearheaded by Advent, continuity in leadership under Philip Fayer ensures a seamless journey forward.
The deal reflects confidence in Nuvei’s innovative offerings and signals a broader trend of Canadian tech firms transitioning to private entities. As Nuvei embarks on this new chapter, guided by its dedication to customer value and technological advancement, the partnership with Advent promises to unlock new opportunities and drive evolution in the payments industry.
