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Nuvei climbs on Advent bid

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Mar 18, 2024
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Illustration: Shoshana Gordon/Axios

Nuvei has formed a special committee of independent directors to evaluate "expressions of interest" amid reports that Advent International was weighing a buyout bid, Nuvei confirmed Sunday.

Why it matters: Payments dealmaking talks are on the rise as share prices falter and competition increases, with many quietly approaching bankers about finding buyers in recent months.

Driving the news: Shares of Nuvei have climbed 25%, valuing the Ryan Reynolds-backed Canadian company at over C$4.2 billion ($3 billion) after the Wall Street Journal reported it was near a buyout deal with Advent.

  • "The company further confirms that it is engaged in discussions with certain third parties in connection with a potential transaction," a Nuvei spokesperson wrote in a statement.

Context: Offering payments in e-commerce, gambling, and crypto, Nuvei acquired Paya and Till last year.

  • CEO Philip Fayer took a more muted tone on the acquisition strategy in the company's March earnings call, saying debt repayment was a focus.

The big picture: Aside from Nuvei, payments company Shift4 has weighed bids, and Repay is said to be shopping for buyers.

  • "Consumer balance sheets are stretched really thin right now, and 95% of payments are consumer-behavior driven," says Dan Dolev, senior analyst with Mizuho.
  • The payment industry's seen an explosion of players, creating heavy competition in the space. On the e-commerce side, for example, Nuvei could run into Adyen and Stripe, while Shift4 could run into Toast or Square.
  • "There's a lot of 6,000-pound gorillas," says Dolev.

Flashback: The payments space at large has been a dealmaking hotspot since 2019, when Fiserv acquired First Data and FIS bought Worldpay.

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