Nuvei to Acquire GTCR-Backed Payments Provider Paya in $1.3B Deal

Canadian fintech company Nuvei will acquire Atlanta-based payments and accounting provider Paya Holdings Inc. for $9.75 per share in a cash deal worth $1.3bn. Private equity firm GTCR agreed to tender their shares of Paya, which was originally acquired in 2017, with ownership of 34% of the company.

Nuvei said it expects to finance the acquisition with a combination of cash on hand, an existing credit facility, and a newly committed $600 million first-lien secured credit facility.

The acquisition is expected to accelerate the integrated payment strategy and diversify the business into key high-growth non-cyclical verticals. Paya has a strong footprint in key non-cyclical verticals, including B2B goods and services healthcare, non-profit and education, and government and utilities.

“The proposed acquisition of Paya is a powerful next step in the evolution of Nuvei, creating a preeminent payment technology provider with strong positions in global eCommerce, Integrated Payments and business-to-business,” said Philip Fayer, Nuvei’s Chair and Chief Executive Officer.

The proposed transaction is expected to deliver up to $21 million of estimated run-rate cost synergies within two years.

The transaction is expected to close by the end of the first quarter of 2023.

JP Morgan Securities LLC and Raymond James & Associates are serving as financial advisors to Paya and Kirkland & Ellis LLP is serving as Paya’s legal advisor.