Nuvei Corporation (NVEI) executed one of the biggest acquisitions in the business world in the first quarter of 2023.
The Canadian company just completed the acquisition of Paya Holdings Inc. for US$1.3 billion, which has expanded its operations into the United States market.
Paya is a leading U.S. provider of integrated payment and frictionless commerce solutions that processed $50 billion in annual payment volume last year, mainly in high-growth verticals such as healthcare, non-profit, government, utilities, and other business-to-business (B2B) end markets.
Nuvei executed a tender offer to acquire all outstanding shares of Paya for $9.75 per share in cash (approximately $1.3 billion of enterprise value for Paya).
The closing of the transaction came after the completion of certain conditions, including the tender of shares representing at least a majority of the total number of Paya’s outstanding shares, the expiration or termination of the antitrust waiting period, and other customary conditions.
Upon the successful completion of the tender offer, Nuvei acquired all remaining shares not tendered in the tender offer through a second-step merger at the same price.
Nuvei financed the acquisition with a combination of cash on hand, an existing credit facility and a newly committed $600 million first-lien secured credit facility.
Paya amplifies Nuvei’s existing growth strategy and expands its reach into new under-penetrated and non-cyclical verticals where Nuvei’s proprietary technology is well-positioned to accelerate customer growth.
Both companies believe that they are very complementary with respect to geographies, capabilities to offer to customers and partners, and the end markets and verticals that each currently serves.
“This is an important milestone for Nuvei as we continue to build a preeminent payment technology provider with strong positions in global eCommerce, Integrated Payments and B2B,” stated Nuvei Chair and CEO Philip Fayer.
“We have been working diligently on our integration planning, and we are ready to begin the next step on this exciting journey as a single, unified team,” he added.
The transaction is expected to deliver up to $21 million of estimated run-rate cost synergies within 24 months, as well as provide attractive revenue synergy upside potential by bringing Nuvei’s global capabilities as additional offerings to Paya’s partners and customers.
Barclays Capital Inc. served as the lead financial advisor to Nuvei. BMO Capital Markets, RBC Capital Markets and Evercore Group LLC also provided financial advice to Nuvei.
Bank of Montreal and Royal Bank of Canada provided committed financing to Nuvei.
Nuvei is the Canadian fintech company accelerating the business of clients around the world through its modular, flexible and scalable technology, which allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services.
Nuvei Corporation (NVEI) was down 0.626 per cent, trading at C$42.84 at 11:07 AM ET.