Canadian fintech company Nuvei Corporation has agreed to acquire US-based integrated payments and business solutions provider Paya Holdings for $1.3 billion.
Nuvei stated that this all-cash transaction at $9.75 per share will enhance its ability to execute high-growth integrated payment opportunities, with Paya having established software integrations with over 300 independent software vendor platforms.
The fintech company also mentioned that the proposed acquisition will diversify its business into high-growth markets and expand its capabilities into large and growing B2B sectors, enhancing its existing growth strategy.
The transaction has received unanimous approval from the boards of both parties, with Paya's board intending to recommend the deal to its shareholders. If the proposed transaction progresses as planned, it is expected to be completed by the end of the first quarter.
However, the deal also includes customary termination provisions, allowing Paya to accept and enter into a superior proposal. Should this occur, Paya will pay Nuvei an approximate termination fee of $38 million.
Nuvei expects to fund the acquisition with cash, existing credit facilities, and a newly committed $600 million first-lien secured credit facility.
Nuvei's Next Steps
Nuvei's Chairman and CEO Philip Fayer said: "The proposed acquisition of Paya is a powerful next step in Nuvei's development, creating a distinguished payment technology provider with a strong position in global e-commerce, integrated payments, and B2B sectors."
"The proposed transaction will merge two people-focused, technology-leading, high-growth payment platforms. This will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with a large addressable end market, and strengthen the execution of our growth plans."
Paya's CEO Jeff Hack added: "We are thrilled to reach this deal with Nuvei, which recognizes the outstanding talent at Paya and will deliver immediate and substantial cash value to Paya shareholders.
"We continue to see strong momentum with our partners in high-growth, underpenetrated mid-market sectors in the enduring end markets, and believe Nuvei's resources will enable us to continue our mission to solve complex business problems with easy-to-use payment solutions."
