Canadian Financial Technology Nuvéi reportedly about to be acquired by a private equity firm International Advent.
The payments processor, backed by actor/investor Ryan Reynolds, is in advanced discussions with Advent, the Wall Street Journal (WSJ) reported Sunday, March 17, citing sources familiar with the matter.
The WSJ noted that Nuvei’s $3 billion market capitalization would make the purchase one of the largest private equity buyouts in recent memory, amid a slowing market for such deals.
Nuvei released a statement Sunday evening confirming that its board of directors had formed a committee to evaluate “expressions of interest” in the company.
“The Company further confirms that it is engaged in discussions with certain third parties in connection with a potential transaction involving the continued significant ownership of certain of the holders of multiple voting shares, including Phil Fayer, Founder, Chairman and CEO of Nuvei,” the release said. statement read.
Reynolds made a unspecified investment in Nuvei last year, following a series of other high-profile projects: a 25% stake in Mint Mobile — a wireless service provider sold to T-Mobile for $1.35 billion – as well as investments in American Aviation Gin and the United Kingdom Wrexham Football Club.
Last year, Nuvei also completed its $1.3 billion acquisition payment platform Pay with the aim of increasing its presence in “high growth” verticals such as healthcare, non-profit, government, utilities and other business-to-business (B2B) markets.
Nuvei released quarterly results earlier this month that show the company sees double-digit growth in demand and momentum from enterprise clients, as well as its B2B and ISV-related businesses.
Nuvei also collaborated with PYMNTS Intelligence on research, including the recent report “The Role of Fraud Detection in Reducing Payment Failures.”
As noted here earlier this month, a key theme of this study is the importance for e-commerce merchants to distinguish between payments that fail for mundane reasons, such as typos, and those that are discontinued due to possible fraud.
“Merchants who can make this distinction are able to more accurately and confidently target recovery methods, understand process issues, and improve customer satisfaction,” PYMNTS wrote. “As any entrepreneur knows, turning away a customer or wrongly declining a transaction not only undermines customer loyalty, but also hurts the bottom line. »
That’s why the report also examines the effectiveness of collaborations between e-commerce merchants and payment service providers (PSPs) to more precisely identify the reasons why payments are declined.
“Almost 85% of these traders “People who actively engage with PSPs can confidently encourage customers to try to complete their transaction a second time using the same payment method, likely because they have a better idea of where the first declined payment came from “, wrote PYMNTS.
