Canadian payment provider Nuvei Corporation has entered into a definitive agreement to be taken private by Boston-headquartered private equity firm Advent International.

Advent will acquire all the issued and outstanding subordinate voting shares of Nuvei, and any multiple voting shares that are not rollover shares, for US$34.00 per share in cash, valuing Nuvei at an enterprise value of $6.3 billion.

This price represents a premium of 56 per cent to Nuvei’s closing price on the Nasdaq Global Select Market on 15 March, the last trading day prior to media reports concerning a potential transaction involving the company.

“This transaction marks the beginning of an exciting new chapter for Nuvei, and we are glad to partner with Advent to continue to deliver for our customers and employees and capitalize on the significant opportunities that this investment provides,” said Philip Fayer, who will continue to lead Nuvei as chair and CEO.

“Our strategic initiatives have always focused on accelerating our customers revenue, driving innovation across our technology, and developing our people. Bringing in a partner with such extensive experience in the payments sector will continue to support our development.”

Advent managing director Bo Huang commented: “Nuvei has created a differentiated global payments platform with an innovative product offering that serves attractive payments end markets like global eCommerce, B2B and embedded payments. “Our deep expertise and experience in payments give us conviction in the opportunity to support Nuvei as it continues to scale from its base in Canada as a global player in the space.

“We look forward to collaborating closely with Nuvei to capitalize on emerging opportunities to help shape the future of the payments industry.”

Fayer is also one of Nuvei’s leading shareholders alongside Novacap and CDPQ, who have all agreed to roll 95 per cent, 65 per cent and 75 per cent respectively of their shares (rollover shares), and are expected to receive in aggregate $560 million in cash on closing.

Fayer, Novacap and CDPQ are expected to indirectly own or control 24 per cent, 18 per cent and 12 per cent respectively of the equity in the resulting private company.

“As an existing and long-term shareholder, we continue to stand behind management’s proven dedication to innovation, efficiency, and market adaptation, which has consistently propelled Nuvei forward,” said Novacap senior partner David Lewin. “With our continued support, we entrust management to navigate the evolving landscape adeptly, driving expansion, and delivering on our shared commitment to long-term growth for Nuvei employees and customers.”

CDPQ executive vice-president and head of Québec Kim Thomassin added: “Ever since our first investment in Nuvei in 2017, CDPQ is proud to have supported this Québec fintech leader at every stage of its growth, particularly through acquisitions on a global scale.

“We are delighted to accompany Nuvei once again as it embarks on this new chapter of its history, alongside recognized partners such as Advent, as well as existing shareholders Philip Fayer and Novacap.”

Nuvei’s Board of Directors, after receiving advice from the company’s financial advisor and outside legal counsel, is unanimously recommending that Nuvei shareholders vote in favour of the transaction.

This recommendation follows the unanimous recommendation of a special committee of the Board, which is comprised solely of independent directors and was formed in connection with the transaction.

The transaction will be subject to shareholder approvals at a special meeting of shareholders, as well as customary closing conditions, including receipt of key regulatory approvals, and is expected to close in late 2024 or the first quarter of 2025.

Shares in Nuvei Corporation (TOR:NVEI) closed 2.66 per cent higher at CAD$43.96 per share in Toronto Monday.