April 13th, 2024

Payment tech firm Nuvei forms special committee to evaluate proposals, shares soar

By The Canadian Press on March 18, 2024.

Nuvei Corp. says it has formed a special committee to evaluate expressions of interest for the payment technology firm including a potential going-private transaction as well as any other strategic alternatives. THE CANADIAN PRESS/HO-Nuvei

MONTREAL – Shares of Nuvei Corp. rose nearly 30 per cent after it said it has formed a special committee to evaluate expressions of interest for the payment technology firm.

Nuvei shares were up $8.47 at $37.95 in late-morning trading on the Toronto Stock Exchange.

The company announced the establishment of the committee after media reports on the weekend speculating about a potential deal that would see the company taken private.

Nuvei confirmed it was in talks in connection with a potential transaction involving continued significant ownership by certain of the holders of its multiple voting shares, including Phil Fayer, Nuvei’s founder, chair and chief executive

However, Nuvei cautioned that it has not entered into any agreements and there could be no assurance that any discussions would result in a deal.

It says the special committee is continuing its evaluation of the proposals and the strategic alternatives available to the company.

Canadian actor and entrepreneur Ryan Reynolds announced an investment in Nuvei last year.

The investment by the actor came after it was announced that Mint Mobile, the wireless provider partly owned by Reynolds, had been acquired by telecoms giant T-Mobile US Inc.

In January, Nuvei announced a partnership deal with software company Adobe to provide customers access to its payment technology.

The agreement with Adobe followed a partnership deal between Nuvei and Microsoft Corp. announced last year that will see the software company start using Nuvei’s payments technology in the Middle East and the Africa.

This report by The Canadian Press was first published March 18, 2024.

Companies in this story: (TSX:NVEI)

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