Canadian fintech Nuvei buys US-based Paya for $1.3 billion
Nuvei, a Canadian fintech company, has agreed to acquire Paya, an Atlanta-based integrated payment provider in a deal valued at 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 capabilities, Paya offers merchant solutions to help customers 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 secured credit facility,” the Canadian firm noted.
Nuvei further explained in the statement that the acquisition will enable it to expand its business-to-business (B2B) offering and existing growth strategy. It will also create a “preeminent payments technology provider” of Nuvei, added Philip Fayer, Nuvei’s chairman and CEO.
Check out this Finance Magnates London Summit 2022 session on fintech collaboration.
Fayer also told Reuters that the acquisition will enable the firm to generate about half of its revenue from the US alone, compared to around 40% it generates from the US and Canada combined.
Meanwhile, from Nuvei’s side, the acquisition is being advised mainly by Barclays Captial with support from BMO Capital Markets, RBC Capital Markets and Evercore Group LLC. On the other hand, Paya is mainly advised by JP Morgan Securities LLC.
The payment industry in 2022
The acquisition follows a year which saw a decline in investment in the payment industry. According to KPMG, investment in the global fintech industry fell 3.1% to $107.8 billion, down from $111.2 billion in the same period last year.
The fintech industry also 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 (in Germany), Volt Bank (in Australia) and Dozens (which closed its UK bank branches).
Nuvei, a Canadian fintech company, has agreed to acquire Paya, an Atlanta-based integrated payment provider in a deal valued at 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 capabilities, Paya offers merchant solutions to help customers 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 secured credit facility,” the Canadian firm noted.
Nuvei further explained in the statement that the acquisition will enable it to expand its business-to-business (B2B) offering and existing growth strategy. It will also create a “preeminent payments technology provider” of Nuvei, added Philip Fayer, Nuvei’s chairman and CEO.
Check out this Finance Magnates London Summit 2022 session on fintech collaboration.
Fayer also told Reuters that the acquisition will enable the firm to generate about half of its revenue from the US alone, compared to around 40% it generates from the US and Canada combined.
Meanwhile, from Nuvei’s side, the acquisition is being advised mainly by Barclays Captial with support from BMO Capital Markets, RBC Capital Markets and Evercore Group LLC. On the other hand, Paya is mainly advised by JP Morgan Securities LLC.
The payment industry in 2022
The acquisition follows a year which saw a decline in investment in the payment industry. According to KPMG, investment in the global fintech industry fell 3.1% to $107.8 billion, down from $111.2 billion in the same period last year.
The fintech industry also 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 (in Germany), Volt Bank (in Australia) and Dozens (which closed its UK bank branches).
