Nuvei, a leading global payment technology provider, announced today that it has entered into a definitive agreement to acquire Paya, a provider of integrated payment and commerce solutions in the US. They have signed a legally binding contract under which Nuvei would buy Paya for a total cash consideration of almost $1.3 billion, paying $9.75 per share.
The acquisition of Paya will expand Nuvei’s offerings and enhance its capabilities in the payments industry. Paya’s integrated payment and commerce solutions, including its point-of-sale systems, will complement Nuvei’s existing portfolio of payment products and services. By combining their expertise and technology, both companies will be able to offer merchants a broader range of solutions to help them optimize their payment processing and enhance customer experience.
Paya’s platform, which processes over $40 billion in annual payment volume and provides services to more than 100,000 businesses, will bring significant scale to Nuvei’s operations. This will further strengthen the company’s position in the payments industry and enhance its ability to serve its existing and future clients.
“The proposed acquisition of Paya is a powerful next step in the evolution of Nuvei, creating a preeminent payment technology provider with strong positions in global eCommerce, Integrated Payments and business-to-business (“B2B”). The proposed transaction will combine two people-first, technology-led, high-growth payment platforms. It will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets and enhance the execution of our growth plan”, said Philip Fayer, Chairman and Chief Executive Officer, Nuvei.
The acquisition is expected to be accretive to Nuvei’s earnings in the first full fiscal year following the closing of the transaction. Nuvei expects to fund the acquisition with cash on hand and debt financing. This is a strategic move for Nuvei as it aims to expand its presence in the payments industry by acquiring the right company which will add more capability to Nuvei. Both the companies have a good reputation in the market and together they will be able to provide more comprehensive and innovative solutions to help their clients grow their businesses.
Jeff Hack, Chief Executive Officer, Paya, said, “We are pleased to have reached this transaction with Nuvei, which is a testament to the incredible talent at Paya, and will deliver immediate and significant cash value to Paya shareholders. We continue to see strong momentum in our high-growth and underpenetrated middle market partners in durable end-markets, and believe that Nuvei’s resources will enable us to continue our mission of solving complex business problems with easy-to-use payment solutions.”
