Nuvei, a Canadian fintech company, has agreed to buy Paya, an Atlanta-based integrated payments provider, in a deal worth approximately $1.3 billion. Nuvei will pay USD $9.75 in cash per share, the companies announced in a statement released on Monday.

While Nuvei offers next-generation payment infrastructure and payout options, Paya provides commerce solutions to help customers to make and accept payments.

“Nuvei 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 Canadian firm noted.

Nuvei Aims for Growth with Paya Acquisition

Nuvei in the statement explained that the acquisition will enable it to expand its business-to-business (B2B) offering and existing growth strategy. In addition, it will create a “preeminent payment technology provider” out of Nuvei, Philip Fayer, the Chairman and Chief Executive Officer at Nuvei added.

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Fayer also told Reuters that the buyout will make it possible for the firm to generate about half of its revenue from the United States alone, compared to about 40% it generates from the United States and Canada combined.

Meanwhile, from Nuvei’s side, the acquisition is chiefly advised by Barclays Capital with support from BMO Capital Markets, RBC Capital Markets and Evercore Group LLC. In contrast, Paya is being majorly advised by JP Morgan Securities LLC.

Payments Industry in 2022

The acquisition follows a year that witnessed a decline in investment in the payments industry. According to KPMG, investments into the global fintech industry dropped by 3.1% to US$107.8 billion, which is down from US111.2 billion in the same period last year.

Moreover, the fintech industry accounted for some of the most extensive layoffs recorded in 2022. Furthermore, the industry saw the exit of a number of firms this year. This includes companies such as Fast, Nirvana Money, Planetly (in Germany), Volt Bank (in Australia) and Dozens (which closed its UK banking arms).