Nuvei set to acquire Paya for $1.3bn

In a deal that will see two notable payment firms unite efforts to better serve North America and beyond, Canada-based Nuvei Corp. has reached a deal to acquire United States-headquartered Paya. The deal is reportedly valued at about $1.3 billion.

Nuvei indicated in an announcement published on Monday that it plans to launch a tender offer to acquire all outstanding shares of Paya at $9.75 each. The offered rate marks a 25% premium relative to Friday’s closing price. According to the notice, shares not bought as part of the tender offer would be picked up during a second-step merger at exactly the same rate.

Nuvei also explained that the acquisition will be funded using available cash, an old credit facility and a freshly raised $600 million first lien secured credit facility. The agreement has received the needed approval from the boards of both firms. The deal is now expected to close latest by the close of Q1.
Nuvei projects that the new acquisition will increase adjusted earnings during the year and also lead to $21 million in estimated run-rate cost savings within 24 months.

Philip Fayer, chairman and chief executive of Nuvei, noted that the acquisition of Paya would speed up the advancement of Nuvei’s payment strategy and aid growth plans, while also diversifying its operations, particularly its business-to-business offerings.

Upon observing the trend during Monday’s premarket trading, Paya’s shares rose 25% higher than its Friday closing price of $7.79.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us