Nuvei Corporation, Backed by Ryan Reynolds, Goes Private

Nuvei Corporation (NVEI.TO), a prominent Canadian fintech company with financial backing from actor Ryan Reynolds, has entered into a definitive agreement to be acquired by private equity firm Advent International. This all-cash transaction, valued at approximately $6.3 billion, signifies Nuvei’s transition from a publicly traded company to a private entity.

The acquisition price represents a significant premium for Nuvei shareholders. The deal offers $34 per share, reflecting a 56% increase over Nuvei’s closing share price on the Nasdaq on March 15, 2024. Additionally, the offer translates to a 48% premium over Nuvei’s 90-day volume-weighted average trading price.

Nuvei’s leadership team, including Chairman and CEO Philip Fayer, is expected to remain in place following the acquisition. Key shareholders, including Novacap Management and CDPQ, a Québec-based long-term investment fund, will also retain a stake in the company through Advent International’s ownership structure. This continuity in leadership is likely intended to ensure a smooth transition and preserve Nuvei’s established expertise in the payments technology sector.

The decision to go private reflects a strategic shift for Nuvei. While the company has experienced success as a publicly traded entity, the acquisition by Advent International allows Nuvei to operate with greater flexibility outside the public spotlight. This newfound flexibility could empower Nuvei to pursue long-term growth strategies without the short-term pressures often associated with public markets.

Nuvei has established itself as a leading provider of payment processing solutions for online merchants. The company caters to a diverse clientele, including prominent brands like Virgin Atlantic Airways, fashion retailer Shein, and sports betting firms DraftKings and BetMGM. Advent International’s acquisition underscores the growing prominence of the fintech sector and the increasing value placed on innovative payment processing technologies.

The acquisition’s completion remains subject to customary closing conditions and regulatory approvals. However, both Nuvei and Advent International anticipate the transaction being finalized in late 2024 or the first quarter of 2025. This development signifies a significant transformation for Nuvei and positions the company for continued growth within the ever-evolving financial technology landscape.