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Nuvei to take Paya private for $1.3 billion

Jan 9, 2023
Data: S&P Capital IQ; Chart: Axios Visuals

Montreal-based payments company Nuvei has agreed to acquire Paya for $1.3 billion in cash, the two announced Monday.

Why it matters: A string of payments companies that went public during the pandemic are now being acquired or going private.

Background: Paya went public via a SPAC in 2020, in a deal that valued the company at $1.3 billion.

Zoom in: Other, similar deals include EQT agreeing to take B2B payments company BillTrust private.

The big picture: The payments market was rapidly consolidating even before the pandemic, with larger players such as FIS and Fiserv snapping up smaller businesses to boost growth.

Details: Paya's management attributed much of its recent growth to its B2B, government, nonprofit, health care and insurance customers.

  • Nuvei, meanwhile, has more direct exposure to the consumer, with e-commerce, gaming and travel clients such as Shein, Turkish Airlines and Epic Games, per the company's most recent earnings call.

Of note: The all-cash deal, if completed, represents a complete exit for private equity firm GTCR after a twisty journey.

  • GTCR first acquired Paya in 2017 in a deal valuing the company at about $260 million.
  • It remained Paya's largest shareholder after the SPAC deal, currently holding a 34% stake.
  • As of Friday, before the deal's announcement, shares of Paya were down 45.8% from its all-time high.
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