Advent to acquire Nuvei, a fintech backed by Ryan Reynolds, in $6.3 billion deal_UPDATE 2

Advent to acquire Nuvei, a fintech backed by Ryan Reynolds, in .3 billion deal_UPDATE 2

(Adds agreement details and context throughout)

April 1 (Reuters) – Private equity firm Advent International has agreed to acquire Canadian company Nuvei in a deal that values ​​the payments technology company, which received financial backing from actor Ryan Reynolds, at $6.3 billion.

The transaction, valued at $34 per share, will deprive Nuvei of its stock almost four years after its listing on the Toronto Stock Exchange.

The buyout of Nuvei, which has a market capitalization of nearly C$6 billion ($4.42 billion), would make it one of the largest privatization deals at a time when capital transactions- investment slows down.

That represents a 56% premium to the company’s closing price on Nasdaq before a potential deal was reported in the media in mid-March.

Current CEO Philip Fayer will continue to lead the company and Nuvei will maintain its headquarters in Montreal, he said.

Nuvei provides payments technology to businesses, enabling them to pay and accept payments regardless of their customers’ location or preferred payment method.

Existing shareholders – Fayer, private equity firm Novacap and Canadian pension fund CDPQ – are expected to indirectly own or control approximately 24%, 18% and 12%, respectively, of the private company’s shares after the transaction closes .

Payment processors thrived during the COVID-19 pandemic as customers shifted to digital payment methods, but some have since struggled to maintain growth as competition intensified and inflation was taking off.

The deal is expected to be finalized in late 2024 or the first quarter of 2025.

The company’s shares on both the Toronto Stock Exchange and Nasdaq were last halted.

($1 = 1.3572 Canadian dollars) (Reporting by Niket Nishant and Manya Saini in Bengaluru; editing by Shilpi Majumdar and Maju Samuel)

Source Reference

Latest stories