Nuvei is set to acquire FinTech and cryptocurrency startup Simplex in an all-cash deal totalling $250 million USD.
The companies announced Thursday that they have entered into a definitive agreement, with the deal set to close in the second half of 2021.
“Simplex’s infrastructure is a natural fit for Nuvei’s native commerce platform.”
Founded in 2014, Simplex has developed fiat infrastructure for the cryptocurrency industry. The company offers a global fiat onramp using a credit and debit card, which promises a zero chargeback guarantee. Simplex’s banking product also offers fraudless payment processing.
The deal is hoped to provide Nuvei with an electronic money institution licence to offer international bank account number (IBAN) accounts to end-users and corporations.
“We expect Simplex to enhance and expand Nuvei’s steadily growing portfolio of alternative payment methods, adding turnkey simplicity to the process of buying and selling cryptocurrency and converting it back to fiat within a user account – ultimately reducing complexity for merchants and consumers,” said Philip Fayer, Nuvei’s chair and CEO.
“Simplex’s infrastructure is a natural fit for Nuvei’s native commerce platform, further strengthening the capabilities and overall value proposition of our single-integration approach to payments,” added Fayer.
RELATED: Lightspeed to acquire Vend for $350 million
Founded in 2003 by Fayer, Nuvei offers payment solutions to retail merchants, as well as technology and distribution companies. The company’s clients span Canada, the United States, Europe, Latin America, and the Asia Pacific region.
This is Nuvei’s second acquisition since going public on the Toronto Stock Exchange (TSX) in September. Nuvei’s exit was the largest technology IPO by both equity capital raised and market capitalization in TSX history, totalling $833 million USD in aggregate proceeds.
In the fourth quarter of 2020, Nuvei announced it would acquire a substantial amount of the assets of Base Commerce, LLC, a provider of integrated payment solutions, for an undisclosed price.
In March, Nuvei notably announced its CEO, chief financial officer, as well as two of its investors, would sell $494 million USD worth of shares in the company.