Nuvei posted positive second-quarter earnings on the heels of an announcement that it plans to acquire Brazilian licensed payments institution Pay2All.
The Montréal-based FinTech company generated $345.5 million USD in revenue for the three months ended June 30, 2024, up 30 percent year-over-year. Net income fell 54 percent from $11.6 million USD to $5.3 million in the period, down from $0.07 USD to $0.02 on a per-diluted-share basis, Nuvei announced Tuesday after market close.
“We’re excited to offer our full suite of services to help drive growth for the rapidly-growing eCommerce and iGaming operators in this dynamic market.”
Philip Fayer
Total transaction volume rose 22 percent from the same quarter last year $61.7 billion USD from $50.6 billion USD.
On Monday, Nuvei said it entered into a definitive agreement to buy the payments institution, which is expected to enhance the Canadian company’s capabilities in the Brazilian market and reinforces its commitment to the Latin America region.
“The proposed transaction not only strengthens our presence in [Latin America] but also demonstrates our commitment to providing fully localized and modern payment solutions to businesses in Brazil,” Nuvei CEO and chair Philip Fayer said in a statement. “We’re excited to offer our full suite of services to help drive growth for the rapidly-growing eCommerce and iGaming operators in this dynamic market.”
Pay2All holds a licence authorized by the Central Bank of Brazil that will let Nuvei provide payment services as an “issuer of electronic currency,” including accepting payments, managing e-wallets and betting accounts, and participating in all of Brazil’s local payment systems.
The acquisition would allow Nuvei to capture Brazil’s growing sports betting and online gaming market, which is expected to reach $1.97 billion USD this year and grow annually by more than 15 percent to a projected market volume of $4.03 billion USD by 2029, according to Statista. The transaction is subject to customary closing conditions, including approval by the central bank and local antitrust authorities.
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Founded more than 20 years ago by Fayer, the Montréal company offers tech-enabled payment solutions to merchants and partners in the gambling, online retail, financial services, and travel sectors. Its services include card issuing, banking, as well as risk and fraud management. Last year, Canadian actor Ryan Reynolds publicly announced his investment in the company.
Since BetaKit reported the FinTech company’s plans to go private in a $6.3-billion USD deal, Nuvei has announced a host of partnerships as it targets international expansion. In June, it announced it partnered with Visa to become the first global payments provider to offer VisaDirect services in Colombia. This month, it partnered with MasterCard to offer European customers an off-ramping solution to convert digital assets, such as cryptocurrencies, into traditional currency via debit, credit, and prepaid cards. In April, Nuvei said the Monetary Authority of Singapore granted it a licence to offer domestic money transfer, cross-border money transfer, and merchant acquisition services in the country.
Boston-based private equity firm Advent International will take the company private, with the deal expected to close sometime in late 2024 or by the first quarter of 2025.
During the second quarter, adjusted earnings before interest, tax, depreciation and amortization increased by six percent to $116.8 million USD from $110.3 million USD in the same period last year. Adjusted net income grew eight percent year-over-year to $62.6 million USD from $58.1 million USD.
Feature image courtesy Nuvei.