Nuvei posts revenue growth in final earnings as go-private deal gets green light

Montréal-based payments company Nuvei reported yet another quarter of growth in revenue and transaction volume in what may be its last-ever quarterly earnings in its current form as a publicly traded company.

Nuvei is looking to add more than 300 roles across its product, technology, and commercial teams. 

In its Q3 earnings report following market close on Tuesday, Nuvei reported that it generated $357.6 million in revenue for the three months ending Sept. 30, 2024, an increase of 17 percent year-over-year. Additionally, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by two percent, from $110.7 million to $108.8 million, and its net income increased to $17.2 million, compared to a net loss of $18.1 million at the same time last year. Nuvei also grew its transaction volume by 27 percent; from $48.2 billion to $61.3 billion. 

“As we look to finalize our pending take-private, we are already executing on a highly compelling value creation plan, and we have initiated the process of adding 300-plus new roles across our product, technology, and commercial teams,” Nuvei founder and CEO Philip Fayer said in a statement.

While the company also carved out a dividend of approximately $14 million, it looks like public markets investors won’t be seeing it. The FinTech company announced this morning that it had received all required regulatory approvals for its $6.3-billion USD go-private deal with American private equity firm Advent International. Nuvei said that, subject to the remaining closing conditions, it expects the deal to be completed on Friday. The dividend was going to be dispersed to investors if the transaction did not close before Nov. 26, 2024. 

Once the transaction is completed, Nuvei shares will be delisted from the Toronto Stock Exchange and the Nasdaq, and the company will cease being a reporting issuer under Canadian securities laws. 

As part of this deal, which Advent and Nuvei agreed to in April, Nuvei will remain headquartered in Montréal and its founder, Philip Fayer, will continue leading the company as chair and CEO alongside its existing leadership team. 

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Other existing Nuvei shareholders, private equity firm Novacap and pension fund Caisse de dépôt et placement du Québec (CDPQ) are also rolling over some of their existing equity. According to the earnings report, Fayer, Novacap, and CDPQ will respectively own or control approximately 24 percent, 18 percent, and 12 percent of the equity in the post-transaction private company.

The deal will make Nuvei the latest publicly traded Canadian tech business to return to private ownership, just over four years after it first went public in September 2020. Some other companies that went down this path include BBTV Holdings, Dialogue Health Technologies, Magnet Forensics, MDF Commerce, Q4 Inc, and TrueContext. 

Fellow Montréal-based company Lightspeed Commerce is currently entertaining a similar move, and even announced the postponement of its Capital Markets Day last week in light of an ongoing strategic review of the business that includes exploring the potential of a sale. 

Feature image courtesy Nuvei.