MONTREAL - Nuvei Corporation (NASDAQ:NVEI) (TSX:NVEI), a prominent player in the global payments industry, has reached a definitive arrangement to transition to a private entity under the acquisition by Advent International. The deal, valued at approximately $6.3 billion, is supported by key Canadian shareholders, including Philip Fayer, Novacap, and CDPQ.
Under the terms of the agreement, shareholders will receive $34.00 per share in cash, which is a 56% premium over Nuvei's closing share price on Nasdaq on March 15, 2024. This price also signifies a 48% premium over the company's 90-day volume-weighted average trading price as of the same date.
Philip Fayer will maintain his roles as Chair and CEO, continuing to lead Nuvei from its Montreal headquarters. Canadian shareholders Fayer, Novacap, and CDPQ will retain significant indirect ownership stakes in the private company, amounting to approximately 24%, 18%, and 12% respectively.
Nuvei has been recognized for its advanced technology in facilitating next-generation payments and financial services, processing over $200 billion in total volume and generating $1.2 billion in revenue in 2023. The partnership with Advent, a seasoned investor in the payments space, is expected to provide Nuvei with additional operational and sector expertise, as well as investment capacity.
The transaction is set to be completed through a statutory plan of arrangement and is subject to shareholder and court approvals. The proposed deal has received unanimous support from Nuvei's Board of Directors, with the recommendation that shareholders vote in favor of the arrangement. Upon completion, Nuvei's shares will be delisted from both the Toronto Stock Exchange and Nasdaq.
Advent's acquisition is anticipated to close in late 2024 or the first quarter of 2025, assuming timely receipt of regulatory approvals. The arrangement agreement includes a non-solicitation covenant with customary "fiduciary out" provisions, and a termination fee of $150 million payable by Nuvei under certain conditions.
This news is based on a press release statement from Nuvei Corporation.
InvestingPro Insights
As Nuvei Corporation transitions to a private entity under the acquisition by Advent International, investors and market observers are closely monitoring the company's performance metrics and analyst expectations. According to InvestingPro, while there's an expectation of net income growth this year for Nuvei, there has been a notable revision of earnings downwards by 9 analysts for the upcoming period. This juxtaposition of expectations may be indicative of the challenges and opportunities that lie ahead for Nuvei as it prepares for its new chapter.
Moreover, the company's stock has experienced significant returns, with a 20.97% increase over the last three months and an impressive 112.86% uptick over the last six months. These metrics underscore a strong recent performance in the market, which might reflect positively on the acquisition price set forth by Advent International.
InvestingPro Data reveals that Nuvei's market capitalization stands at $4.4 billion, with a forward-looking P/E Ratio (Adjusted) for the last twelve months as of Q4 2023 at 17.79. Additionally, the company has demonstrated robust revenue growth of 41.1% over the same period, signifying its expanding market presence and financial health amidst a dynamic payments industry landscape.
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It's worth noting that the InvestingPro platform currently lists 10 additional InvestingPro Tips for Nuvei, providing a comprehensive analysis for investors seeking to understand the company's prospects and performance nuances in greater detail.
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