Advent International has finalized an agreement to acquire Nuvei Corp, the Canadian payments processor, for a sum of $6.3 billion, inclusive of debt. This acquisition marks a significant milestone and signifies the resurgence of confidence among private equity dealmakers in the current market landscape.
Advent International has agreed to pay $34 per share in cash for Nuvei Corp, as confirmed in a statement released on Monday. Earlier reports from Bloomberg News indicated that the deal was nearing finalization, highlighting the anticipation surrounding this transaction.
Philip Fayer, Nuvei’s Chief Executive Officer, expressed optimism about the partnership with Advent, stating, “This transaction marks the beginning of an exciting new chapter for Nuvei.” He emphasized the company’s commitment to delivering value for customers and employees, leveraging the significant opportunities presented by this investment.
Shares in Nuvei have surged by more than 16% since March 18, following reports of advanced talks with Advent, as reported by The Wall Street Journal. This rally comes after a period of decline, with the stock witnessing a 47% decrease over the preceding 12 months. Nuvei’s current market value stands at approximately $4.6 billion.
Nuvei, backed by Canadian actor Ryan Reynolds, offers pay-in and pay-out services, collaborating with renowned brands such as Virgin Atlantic Airways Ltd., Shein Group Ltd., DraftKings Inc., and BetMGM. Its diverse portfolio and strategic partnerships underscore its position as a leading player in the payments processing industry.
In a notable move, Philip Fayer, along with Novacap Management Inc. and CDPQ, will retain a majority of their ownership interest in Nuvei as it transitions to private ownership. This commitment reflects their confidence in the company’s future growth prospects and operational capabilities.
The acquisition of Nuvei Corp by Advent International contributes to the overall resurgence in private equity activity, particularly in North America. Data compiled by Bloomberg indicate a nearly 7% increase in the value of private equity buyouts targeting North American companies, reaching approximately $44 billion year-to-date. This trend underscores the renewed optimism and appetite for strategic acquisitions in the region.
At the time of reporting, Advent Technologies Holdings Inc. is priced at $0.18 USD, reflecting a positive uptick of 2.44%, showcasing market optimism surrounding recent developments in the private equity sector.
