Nuvei (TSX: NVEI) has announced its agreement to go private in a deal led by private equity firm Advent International. The arrangement agreement values the payment company at an enterprise value of approximately $6.3 billion.
Under the terms of the agreement, Advent International will acquire all issued and outstanding subordinate voting shares of Nuvei, as well as any multiple voting shares not owned by certain stakeholders, at a price of $34.00 per share in cash. This represents a substantial premium of about 56% over Nuvei’s unaffected closing share price on March 15, 2024, prior to media reports on the potential transaction.
It is worth noting that Nuvei debuted back in September 2020 at $34.00 per share, more than 30% higher than its issue price of $26.00 per share announced for the initial public offering. The IPO raised $700 million for the firm.
In its 2023 financial results, Nuvei reported processing over $200 billion in total volume and generating $1.2 billion in revenue.
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Following the acquisition, CEO Philip Fayer will continue to lead the company, along with its existing leadership team.
“This transaction marks the beginning of an exciting new chapter for Nuvei, and we are glad to partner with Advent to continue to deliver for our customers and employees and capitalize on the significant opportunities that this investment provides,” Fayer said.
The agreement has received support from major Nuvei shareholders, including Fayer, investment funds managed by Novacap Management Inc., and CDPQ.
The transaction is subject to shareholder approval at a special meeting, regulatory approvals, and customary closing conditions. It is expected to close in late 2024 or the first quarter of 2025. Following completion, Nuvei’s subordinate voting shares will be delisted from stock exchanges, and the company will cease to be a reporting issuer.
The arrangement agreement includes provisions for a non-solicitation covenant, with Nuvei retaining the option to accept a superior proposal under certain circumstances. Additionally, termination fees are outlined in the agreement to ensure fair treatment of all parties involved.
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