Advent International Acquires Nuvei Corp in a $6.3 Billion Deal
In a significant move within the payment processing landscape, Advent International has announced its agreement to acquire Canadian payments processor Nuvei Corp. for a striking $6.3 billion, a figure that includes debt. The deal, announced today, sees the private equity firm agreeing to pay $34 per share in cash for Nuvei.
“This transaction marks the beginning of an exciting new chapter for Nuvei," stated Philip Fayer, Nuvei’s chief executive officer. “We are glad to partner with Advent to continue to deliver for our customers and employees and capitalize on the significant opportunities that this investment provides.”
The announcement has had a positive impact on the market, with shares in Nuvei witnessing a surge of more than 16% following reports of advanced negotiations with Advent. Behind this success story is not only a robust business model but also the star power of Canadian actor Ryan Reynolds, one of the backers of Nuvei.
Nuvei, a prominent name in the payment services industry, prides itself on its partnerships with notable brands like Virgin Atlantic Airways Ltd., Shein Group Ltd., DraftKings Inc., and BetMGM. This collaboration across a spectrum of industries underlines Nuvei’s versatile and extensive reach in the global market.
With the transaction, key figures like Fayer, Novacap Management Inc., and CDPQ will roll over a majority of their ownership interest in Nuvei, transitioning the company into private hands. This move is reflective of the broader trend in the market, where the value of private equity buyouts targeting companies in North America has seen an uptick of almost 7% this year, amassing to about $44 billion.
This acquisition not only highlights the growing attractiveness of the payment processing sector for investment firms but also underscores the strategic value that companies like Nuvei offer in the digitized financial services arena. As the company embarks on this new venture with Advent International, the industry watches eagerly to see how this partnership will thrive and evolve in the increasingly competitive and fast-paced global payments landscape.
Analyst comment
Positive news. The acquisition of Nuvei Corp by Advent International for $6.3 billion is seen as a positive move in the market. Shares in Nuvei surged by over 16% following reports of the deal. The transaction reflects the growing attractiveness of the payment processing sector and highlights the strategic value of companies like Nuvei in the digitized financial services arena. The market expects this partnership to thrive and evolve in the competitive global payments landscape.
