Nuvei to take Paya private for $1.3 billion

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.

• Shift4, which went public in June 2020, is also weighing a return to private markets.

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.