Nuvei Corp (TSX: NVEI) is looking to expand via acquisitions. The company this morning announced that it has entered into a definitive agreement to acquire Mazooma Technical Services, a gaming and sports wagering payment technology provider.
A registered vendor in 9 states with permissions in 12 states, Mazooma is an account to account payments provider focused on the US sports betting and online gaming marketplace. In addition to its registered vendor status, the company holds what is known as a money transmitter license in 47 states as well. The company is reportedly integrated with most online US gaming platforms, and is slated to transact over $2.0 billion in transactional volume in 2021 as per the company.
Under the terms of the arrangement, Nuvei is to acquire Mazooma for an initial figure of $56.0 million, however performance payments are also in place. Over a three year period from the closing date, that price could balloon as high as $315 million based on undisclosed performance achievements being met.
The transaction will see 76% of the price paid via cash, while 24% is to be paid via the issuance of subordinate voting shares. The transaction is currently slated to close in the second quarter of 2021.
Nuvei Corp last traded at $85.44 on the TSX.
Information for this briefing was found via Sedar and Nuvei Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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