Nuvei Corp., a major provider of payment processing software, has agreed to be taken private by investment firm Advent International at a $6.3 billion valuation.

The company announced the deal today. The all-cash transaction values it at $34 per share, a 56% premium over its last unaffected stock price.

The offer is backed by investment firms Novacap and CDPQ, which together with Nuvei Chief Executive Officer Philip Fayer have a majority stake in the software maker. They will sell about $560 million worth of shares as part of the deal. That will leave them with a combined 54% stake in the company once the acquisition closes.

Montreal-backed Nuvei was founded in 2003 by Fayer and went on to raise more than $60 million from investors such as Goldman Sachs. It later went public not once but twice: The company floated its shares on Toronto Stock Exchange in 2020 and launched a Nasdaq listing the following year. The two IPOs raised a combined $1.1 billion.

Nuvei provides a cloud platform that helps e-commerce companies, brick-and-mortar retailers and other businesses process payments. The platform can be embedded into a website or app to power its checkout page. Nuvei automatically customizes the checkout page’s language and payment currency for each customer.

Companies can integrate the platform into their applications in multiple ways. For small and midsized businesses with limited technical know-how, Nuvei provides a managed checkout page that can be built into an online store without writing code. For larger organizations that require the ability to customize its platform, the company offers an application programming interface.

Nuvei also has a presence in other parts of the financial technology market. It provides payment devices that retailers can use to process in-store purchases, as well as an app that allows a smartphone or tablet to be used for the same task. Another Nuvei tool helps e-commerce marketplace operators disburse payments to the third-party merchants active on their platforms.

“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,” said Advent Managing Director Bo Huang. “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.”

That Advent is offering to buy Nuvei at a 56% premium reflects the fact the software maker has experienced strong growth in recent quarters. During the last three months of 2023, Nuvei’s revenue increased 46% year-over-year to $321.5 million. The total value of the transactions processed by its platform grew at an even faster clip, climbing 59% to $203 billion. 

Nuvei’s Fayer will continue to lead the company after the acquisition closes. Advent expects to complete the transaction in late 2024 or the first quarter of 2025. 

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