Nuvei, a Canadian fintech company has agreed to buy Paya, an Atlanta-based integrated payments provider in a deal worth approximately $1.3 billion. Nuvei will pay USD $9.75 in cash per share, the companies announced in a statement released on Monday.
While Nuvei offers next-generation payment infrastructure and payout options, Paya provides commerce solutions to help customers to accept and make payments.
“Nuvei expects to finance the acquisition with a combination of cash on hand, an existing credit facility and a newly committed $600 million first lien secured credit facility,” the Canadian firm noted.
Nuvei in the statement further explained that the acquisition will enable it to expand its business-to-business (B2B) offering and existing growth strategy. It will also create a “preeminent payment technology provider” out of Nuvei, Philip Fayer, Nuvei’s Chair and Chief Executive Officer added.
Check out this Finance Magnates London Summit 2022 session on fintech collaboration.
Fayer also told Reuters that the buyout will make it possible for the firm to generate about half of its revenue from the United States alone, compared to about 40% it generates from United States and Canada combined.
Meanwhile, from Nuvei’s side, the acquisition is chiefly advised by Barclays Captial with support from BMO Capital Markets, RBC Capital Markets and Evercore Group LLC. On the other hand, Paya is being majorly advised by JP Morgan Securities LLC.
Payments Industry in 2022
The acquisition follows a year that saw a decline in investment into the payments industry. According to KPMG, investments into the global fintech industry dropped by 3.1% to US$107.8 billion, down from US111.2 billion in the same period last year.
Also, the fintech industry accounted for some of the largest mass layoffs recorded in 2022. The industry also saw the exit of a number of firms this year. This includes companies such as Fast, Nirvana Money, Planetly (inGermany), Volt Bank (in Australia) and Dozens (which closed its UK banking arms).
Nuvei, a Canadian fintech company has agreed to buy Paya, an Atlanta-based integrated payments provider in a deal worth approximately $1.3 billion. Nuvei will pay USD $9.75 in cash per share, the companies announced in a statement released on Monday.
While Nuvei offers next-generation payment infrastructure and payout options, Paya provides commerce solutions to help customers to accept and make payments.
“Nuvei expects to finance the acquisition with a combination of cash on hand, an existing credit facility and a newly committed $600 million first lien secured credit facility,” the Canadian firm noted.
Nuvei in the statement further explained that the acquisition will enable it to expand its business-to-business (B2B) offering and existing growth strategy. It will also create a “preeminent payment technology provider” out of Nuvei, Philip Fayer, Nuvei’s Chair and Chief Executive Officer added.
Check out this Finance Magnates London Summit 2022 session on fintech collaboration.
Fayer also told Reuters that the buyout will make it possible for the firm to generate about half of its revenue from the United States alone, compared to about 40% it generates from United States and Canada combined.
Meanwhile, from Nuvei’s side, the acquisition is chiefly advised by Barclays Captial with support from BMO Capital Markets, RBC Capital Markets and Evercore Group LLC. On the other hand, Paya is being majorly advised by JP Morgan Securities LLC.
Payments Industry in 2022
The acquisition follows a year that saw a decline in investment into the payments industry. According to KPMG, investments into the global fintech industry dropped by 3.1% to US$107.8 billion, down from US111.2 billion in the same period last year.
Also, the fintech industry accounted for some of the largest mass layoffs recorded in 2022. The industry also saw the exit of a number of firms this year. This includes companies such as Fast, Nirvana Money, Planetly (inGermany), Volt Bank (in Australia) and Dozens (which closed its UK banking arms).