Highlights:

  • Nuvei has generated a net income worth USD 65M with its overall revenue hitting USD 835M.
  • Paya offering more than 300 third-party software integrations is another significant factor compelling its acquisition.

Nuvei Corp., a payment processing provider, announced a deal to acquire Paya Holdings Inc., its rival, for a whopping amount of USD 1.3B.

This all-cash transaction deal has priced Paya at USD 9.75 per share, a 25% premium to the previous closing cost of the stock. Acquirer initiated to finance the deal in the form of an existing credit facility, called cash on hand and USD 600M in new debt.

Philip Fayer, CEO of Nuvei, said, “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 e-commerce, integrated payments and business-to-business. It will accelerate our integrated payment strategy, diversify our business into key high-growth noncyclical verticals with large addressable end markets and enhance the execution of our growth plan.”

The online retailers and other enterprises use cloud platform developed by Nuvei to process their customer payments. The range of platform enables customers to make transactions in more than 150 currencies. It is compatible with more than 585 payment methods including digital wallets, credit cards, and Buy Now Pay Later (BNPL) platforms such as Klarna.

Montreal-based Nuvei provides payment features based on Application Programming Interface (API) integrated with the apps, portals, and shopping carts of e-commerce enterprises.

Paya, based in Atlanta also offers similar features with its cutthroat payment processing platform. Similar to Nuvei, the company’s transactional services are made available through an API in conjunction with e-commerce applications. Every year, Paya processes transactions over USD 40 billion across 72,000 enterprises worldwide.

Nuvei has generated a net income worth USD 65 million with its overall revenue hitting USD 835 million, while Paya amassed USD 9.5 million in net worth accruing USD 277 million in total revenue during the past 12 months.

The acquisition will surge the market share of the company across six segments in which Paya has established its presence, claimed Nuvei. These segments are healthcare, education, non-profit domain, B2B goods and services, government, and utility sector. Besides, Nuvei is anticipating the deal to persuade the partners of Paya in purchasing Nuvei’s software.

Paya offering more than 300 third-party software integrations is another significant factor compelling its acquisition. The company eases the complex task of integrating purchase logs from a retailer’s store to its enterprise resource planning system. Nuvei, therefore plans to utilize Paya’s integrations for feature set expansion post acquisition.

Nuvei anticipates the deal to be increscent in accordance with its per share earnings determined for the fiscal year 2023. Moreover, the company is estimating to hit annual cost savings close to USD 21 million for the next two years.