Electronic payments | Nuvei closes its capital

Less than four years after going public, Montreal financial technology firm Nuvei, which specializes in electronic payments, will delist from the stock market following a deal with Boston-based investment firm Advent International.




The transaction announced Monday by Nuvei sees its shareholders receive US$34 per share in cash, valuing it at US$6.3 billion, or about CAN$8.55 billion. This share repurchase agreement with Advent International also includes Nuvei's current major shareholders, including its chairman and CEO, Philip Fayer.

At the end of this transaction, Mr. Fayer will own or indirectly control approximately 24% of Nuvei's private equity, while Quebec investment firm Novacap will own 18% and Caisse de dépôt et placement du Québec (CDPQ ) will be found at 12%.

PHOTO BY MARTIN CHAMBERLAND, THE PRESS

Philip Fayer, President and CEO of Nuvei;

According to Nuvei, Advent International is a long-term investor in the electronic payments sector, which will allow it to “benefit from the significant resources, operational and sector expertise and investment capacity that Advent offers.”

With $91 billion in assets under management, Advent bills itself as “one of the largest and most experienced global private equity investors” with a staff of 295 professionals spread across 15 offices in 12 countries in the Americas and Europe.

On his part, the fintech Montreal-based Nuvei describes itself as “one of the most advanced technology providers in the global payments industry.” In its most recent annual report, in 2023, Nuvei reported that the total volume of transactions made with its electronic payment technologies exceeded the US$200 billion mark. With such trading volume, Nuvei's revenue from these ongoing operations reached US$1.2 billion.

Following the transaction, Philip Fayer will continue to lead Nuvei as President and CEO, along with members of his senior management team. It is also reported that Nuvei's headquarters will remain in Montreal.

In Mr. Fayer's opinion, “this transaction marks the beginning of an exciting new chapter for Nuvei.”

Our strategic initiatives have always focused on accelerating revenue for our customers, driving innovation in our technology and developing our people. Attracting a partner with such extensive experience in the payments industry will continue to drive our expansion.

Philip Fayer, in the press release announcing the transaction

First reported by Wall Street JournalIn the middle of March – Guy had also resonated1 –the plan to privatize Nuvei's share capital was subsequently approved by the company in the form of a “strategic review” of the proposals received, but without specifying their number or origin.

However, this confirmation of a “strategic review”, albeit a very partial one, caused the value of Nuvei's shares on the US NASDAQ and the Toronto Stock Exchange to jump by just over 30%.

At investment firm Advent International, CEO Bo Huang says “Nuvei has built a distinctive global payment platform with an innovative product offering, which serves attractive payment end markets such as e-commerce. global business-to-business payments and integrated payments.

Advent's general manager says he is convinced that “ [Advent pourra] “Support Nuvei's growth as a global player in the industry from Canada, to take advantage of the opportunities that arise and help shape the future of the payments industry.”

It will be recalled that the Montreal company last year acquired an investment from Canadian actor Ryan Reynolds which caused a stir at the time.

Nuvei's two other major shareholders, Caisse de dépôt and Novacap, express confidence in the Montreal company's new growth prospects in the international payment technology market.

David Lewin, senior managing partner at Novacap, said “as an existing and long-standing shareholder, we continue to support management's demonstrated commitment [de Nuvei] in favor of innovation, efficiency and market adaptation. We are confident that with our continued support, management will skillfully adapt to the changing environment, drive expansion and deliver on our shared commitment to long-term growth for Nuvei's employees and customers.”

At Caisse de dépôt et placement, which has been invested in Nuvei since 2017, first vice-president and head of investments in Quebec, Kim Thomassin, says that after “supporting this Quebec leader in fintech at every stage of its development, particularly in the context of acquisitions on a global scale, the Caisse de dépôt intends to “once again support Nuvei as it undertakes this new chapter in its history, together with recognized partners such as Advent and existing shareholders Philip Fayer and Novacap'.

According to information communicated by Nuvei, all members of its board of directors, its main shareholders as well as all members of the company's top management, representing a total of 92% of the voting rights in its share capital, have decided to support the transaction which was invented. with Advent International.

With the Canadian Press

1. Consult the article from March 17 Guy causing different scenarios.

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