MONTREAL - Nuvei Corporation (NASDAQ: NVEI) (TSX: NVEI), a Canadian fintech company, today announced a definitive agreement to acquire Pay2All Instituição de Pagamento Ltda., a Brazilian payment institution. This acquisition is poised to bolster Nuvei's presence in the Latin American market, particularly in Brazil, by enabling the company to offer a full suite of local payment services.
Pay2All holds a Payment Institution license from the Central Bank of Brazil, which is essential for operating within the nation's financial system. This license will allow Nuvei to issue electronic currency, process payments, manage e-wallets and betting accounts, and integrate with Brazil's local payment systems, including PIX transactions.
The move is strategic for Nuvei, as Brazil's iGaming market is expected to generate revenue of US$1.97 billion in 2024, with a projected annual growth rate of 15.39% from 2024 to 2029. The acquisition is subject to regulatory approvals by the Central Bank of Brazil and local antitrust authorities.
Philip Fayer, Nuvei's Chair and CEO, stated, "Securing a Payment Institution license in Brazil has been a top priority, and will mark another significant milestone in our global expansion strategy." He emphasized the company's intention to provide modern payment solutions to businesses, particularly in the fast-growing eCommerce and iGaming sectors.
Nuvei has previously indicated its commitment to the LATAM region by becoming the first global payments company to offer direct local acquiring in Colombia. The company is also in the process of establishing local acquiring services in Mexico, with further expansion plans in the region.
The acquisition announcement is based on a press release statement and reflects Nuvei's ongoing efforts to grow its international footprint through strategic partnerships and regulatory compliance. The company's technology platform connects businesses to customers in over 200 markets, with local acquiring in 50 markets, and supports transactions in 150 currencies and 700 alternative payment methods.
In other recent news, Montreal-based Nuvei Corporation has been given the final court approval for its transition to a private entity, a significant development that will see the company no longer publicly traded after the completion of the deal with private equity firm Advent International. This is a key change in the company's capital structure and strategic direction. The company also recently expanded Visa (NYSE:V) Direct to its customers in Colombia, the first global payments provider to offer this service in the country.
In terms of leadership, Nuvei has appointed Gang Wang as its new Chief Technology Officer, a move designed to bolster the company's technology operations and support its strategic growth ambitions. In the realm of financial performance, Nuvei reported strong quarter-over-quarter results, with a total payment volume exceeding expectations at $62 billion and a revenue growth of 46%.
JPMorgan (NYSE:JPM) has adjusted its stance on Nuvei, changing the rating from Overweight to Neutral, while also raising the price target to $34.00. This adjustment follows Nuvei's latest earnings report and the context of a proposed take-private transaction by Advent.
Lastly, Institutional Shareholder Services, a prominent proxy advisory firm, has recommended that shareholders of Nuvei vote in favor of a proposed acquisition by Neon Maple Purchaser Inc., a subsidiary of private equity firm Advent International. These are recent developments that have been closely watched by investors and industry analysts.
InvestingPro Insights
In light of Nuvei Corporation's recent strategic move into the Brazilian market, the company's financial health and stock performance indicators provide additional context for investors assessing this expansion. According to InvestingPro data, Nuvei's market capitalization stands at $4.67 billion, underscoring its significant presence in the fintech industry. The company has experienced robust revenue growth over the last twelve months as of Q1 2024, with a notable increase of 43.29%, indicating a strong upward trajectory in its financial performance.
InvestingPro Tips suggest that while Nuvei has not been profitable over the last twelve months, analysts predict the company will turn a profit this year. This forecast aligns with the company's strategic acquisitions and expansion into new markets, such as Brazil, which may contribute to future profitability. Moreover, Nuvei's stock has been trading near its 52-week high and has seen a large price uptick of 34.49% over the last six months, signaling investor confidence in its growth prospects.
For investors seeking a deeper dive into Nuvei's performance and future outlook, InvestingPro offers additional tips on the company's financials and stock behavior. There are currently 6 more InvestingPro Tips available for Nuvei, providing a comprehensive analysis for those interested in the company's investment potential. The insights from these tips can be accessed at https://www.investing.com/pro/NVEI, offering valuable information for making informed investment decisions in the dynamic fintech sector.
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