Nuvei to acquire GTCR-backed payments firm Paya in $1.3bn deal

Based in Montreal, Nuvei is a payment technology company.

  • GTCR originally acquired Paya in 2017
  • In 2020, the company started trading on Nasdaq
  • Nuvei went public three years ago, but continues to be backed by Novacap and Caisse de dépôt et placement du Québec

Nuvei has agreed to acquire GTCR portfolio company Paya Holdings, an Atlanta-based integrated payments provider. The enterprise value of the deal is about $1.3 billion

The deal is expected to close by the end of the first quarter of 2023. Upon closing, Paya will no longer trade on the stock market and GTCR will tender its shares of Paya’s common stock.

GTCR, a US private equity firm, originally acquired Paya in 2017. In 2020, the company started trading on Nasdaq.

Based in Montreal, Nuvei is a payment technology company. It went public three years ago, but continues to be backed by Canadian private equity firm Novacap and Caisse de dépôt et placement du Québec.

“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 (“B2B”),” said Philip Fayer, Nuvei’s chair and CEO, in a statement. “The proposed transaction will combine two people-first, technology-led, high-growth payment platforms. It will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets and enhance the execution of our growth plan.”

“Nuvei’s acquisition of Paya marks a significant milestone in the transformation of this business,” said Aaron Cohen, managing director and head of financial services & technology at GTCR. “Since the initial corporate carveout from Sage, the Company has worked side-by-side with our team to implement a growth strategy centered on investing in technology and an enhanced product suite to reach new customers in attractive markets.”

JP Morgan Securities and Raymond James & Associates are serving as financial advisors to Paya and Kirkland & Ellis is serving as Paya’s legal advisor. Simpson Thacher & Bartlett is serving as legal counsel for GTCR.

Founded in 1980, GTCR currently manages more than $26 billion in equity capital.

Correction: An earlier version of this news report misstated that GTCR will remain Paya’s largest shareholder after Paya becomes a private company. That is incorrect. GTCR will tender its shares of Paya’s common stock.