MONTREAL — Payment technology company Nuvei Corp. says it has signed a deal to be bought out by Advent International, along with existing Canadian shareholders Philip Fayer, Novacap and CDPQ.
As part of the agreement, shareholders will be paid US$34 per share in cash, which values the company at US$6.3 billion.
Nuvei says Advent is an experienced investor in the payments technology industry and will bring valuable expertise to the company.
Fayer will continue as the company’s chair and chief executive, and the current leadership team will also stay in place.
He believes the deal marks the beginning of an exciting new chapter for the company.
After the acquisition, Fayer will indirectly own or control approximately 24% of the newly private company, while Novacap will hold 18% and CDPQ will own 12%.
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Shares in Nuvei have risen more than 10% since March 18 after The Wall Street Journal reported the company was in advanced talks with Advent. The stock had been down 47% over the 12 months up to that point. Nuvei has a market value of about US$4.4 billion.
Backed by Canadian actor Ryan Reynolds, Nuvei provides pay-in and pay-out services and partners with brands including Virgin Atlantic Airways Ltd., fashion retailer Shein Group Ltd. and sports betting firms DraftKings Inc. and BetMGM, according to its website.
The value of private equity buyouts targeting companies in North America is up almost 7% this year to about US$44 billion, data compiled by Bloomberg show. This contrasts with a 38% increase for broader M&A targeting the region.
— With files from Bloomberg
