Nuvei Board Forms Special Committee Amid Buyout Talks with Advent
Nuvei (TSX: NVEI), a Canadian payments technology company backed by actor Ryan Reynolds, is in advanced talks to be acquired by private equity firm Advent International, according to a source familiar with the matter as reported by Reuters. The potential deal, which could be announced soon, would make it one of the larger take-private transactions at a time when such buyouts have slowed down.
While not confirming a deal is imminent, Nuvei acknowledged receiving interest and said its board, through a newly formed special committee of independent directors, is evaluating “such expressions of interest as well as any other strategic alternatives that may be available under the circumstances in the best interest of the Company.”
Nuvei also confirmed that “it is engaged in discussions with certain third parties in connection with a potential transaction involving continued significant ownership” by shareholders with multiple voting shares, including the company’s founder, chairman, and CEO Phil Fayer.
Neither Advent nor Nuvei have confirmed the terms being discussed, and the talks could still fall apart, cautioned the source. However, if successfully completed, it would mark the second major deal in the past year involving a company financially supported by the Deadpool star. Last March, T-Mobile acquired Reynolds’ budget wireless provider Mint Mobile for around $1.35 billion.
The payments processor, which went public in 2020 raising $700 million in the largest tech IPO on the Toronto Stock Exchange at the time, serves major clients like General Motors, Microsoft and Shein across 200 markets. It has, however, struggled to maintain growth amid rising competition and inflation after thriving during the pandemic digital payments boom.
The potential Advent buyout comes amid an uptick in deal-making in the financial services sector, including Capital One’s $35.3 billion acquisition of Discover Financial announced in February. Another payments firm, Shift4, is currently in talks for a potential $6 billion-plus sale.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
