MONTRÉAL - Nuvei (TSX:NVEI) Corporation (NASDAQ:NVEI)(TSX: NVEI), a Canadian fintech firm, has announced the receipt of all necessary regulatory approvals for its acquisition by Neon Maple Purchaser Inc., a company backed by Advent International and other investors. The finalization of the deal, termed the Arrangement, is expected to occur around November 15, 2024, pending the satisfaction of remaining conditions.
The Arrangement, which involves the transition of Nuvei from a public to a private entity, received the green light from Nuvei's shareholders during a special meeting on June 18, 2024. Subsequently, the Superior Court of Québec gave its approval on June 20, 2024.
Nuvei operates as a global payment technology partner to businesses, facilitating transactions in over 200 markets with capabilities in local acquiring across 50 markets, handling 150 currencies and offering 720 alternative payment methods. The company's technology stack includes solutions for payment processing, card issuing, and risk and fraud management.
The transaction is supported by Philip Fayer, Nuvei's founder, and investment funds managed by Novacap Management Inc. and Caisse de dépôt et placement du Québec (CDPQ), indicating a strong backing from significant stakeholders in the company.
The forward-looking statements included in the press release caution that there are risks and uncertainties that could cause actual results to differ materially from those anticipated by the company's management. These include potential failure to meet remaining conditions for the Arrangement, transaction costs, unknown liabilities, and the impact of the transaction on the company's business and strategic relationships.
Investors and interested parties can find more information about the Arrangement in the management information circular dated May 13, 2024, available on SEDAR+ and EDGAR.
The completion of this Arrangement is a significant move for Nuvei, as it transitions into a private company with the support of prominent investment entities. This news article is based on a press release statement from Nuvei.
In other recent news, fintech holding company, PROG Holdings, has expanded its board with the addition of two new directors, Robert Julian and Daniela Mielke. This strategic move is part of the company's ongoing efforts to leverage expertise in consumer retail, e-commerce, and digital payments to support its growth strategy. Julian, former CFO of TheRealReal, Inc., brings over 30 years of financial experience from various industries, while Mielke, Managing Partner of Commerce Technology Advisors, LLC, is known for her extensive experience in the digital payments and fintech sectors. The company's leadership expressed confidence in the new directors' ability to drive consumer engagement and business growth, reflecting their commitment to the firm's strategic pillars. These recent developments were facilitated by executive search firm Heidrick & Struggles, under the guidance of the Board's Nominating, Governance and Corporate Responsibility Committee.
InvestingPro Insights
As Nuvei Corporation (NASDAQ:NVEI)(TSX: NVEI) prepares to go private, InvestingPro data provides additional context to the company's financial position and market performance. The company's market capitalization stands at $4.76 billion, reflecting its significant presence in the fintech sector.
Nuvei has demonstrated strong revenue growth, with a 33.23% increase over the last twelve months as of Q2 2024, reaching $1.31 billion. This growth aligns with the company's global expansion and diverse payment solutions mentioned in the article. The company's gross profit margin of 81.09% underscores the efficiency of its technology stack in processing payments across multiple markets and currencies.
InvestingPro Tips highlight that Nuvei's stock has shown a high return over the last year, with a remarkable 81.03% price total return. This performance may have contributed to the attractiveness of the company for the privatization deal. Additionally, the stock is trading near its 52-week high, with the current price at 99.38% of the 52-week high, indicating strong investor confidence leading up to the acquisition announcement.
It's worth noting that while Nuvei was not profitable over the last twelve months, analysts predict the company will be profitable this year. This expectation, combined with the anticipated net income growth, suggests a positive outlook that may have influenced the decision to take the company private.
For investors interested in a deeper analysis, InvestingPro offers 7 additional tips for Nuvei, providing a more comprehensive understanding of the company's financial health and market position.
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