Nuvei has announced its CEO, chief financial officer, as well as two of its investors, will sell $494 million USD worth of shares in the Montréal-based company. The deal is expected to close by March 24.
Fayer also plans to donate 600,000 subordinate voting shares to a charitable organization.
The transaction involves the sale of 8.2 million subordinate voting shares at a price of $60.22 USD per share. The selling shareholders include Nuvei CEO and chair Philip Fayer through his holding company Whiskey Papa Fox, Nuvei CFO David Schwartz, Novacap, and CDP Investissements, a subsidiary of Caisse de dépôt et placement du Québec (CDPQ).
Through his holding company, Fayer also plans to donate 600,000 subordinate voting shares to a charitable organization.
Following the closing of the offering and donation, Fayer will continue to hold 30 million voting shares, while Novacap, CDPQ, and Schwartz will continue to hold approximately 33 million multiple voting shares, 19 million multiple voting shares, and 35,000 subordinate voting shares, respectively.
Proceeds from the deal will be paid to the selling shareholders, and Nuvei will receive no proceeds from the deal.
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.
In September, Nuvei went public on the Toronto Stock Exchange (TSX), after closing its initial public offering (IPO) at $833 million USD, making it the largest technology IPO by both equity capital raised and market capitalization in TSX history.
Nuvei’s most recent financial results represented the strongest period of growth for Nuvei in its history, with revenue of $115.9 million, a 46 percent year-over-year increase. Nuvei attributed part of its fourth-quarter and full-year 2020 growth to new e-commerce business nearly tripling year-over-year in the quarter.
In recent months, Nuvei has looked to grow in the sports betting and online gaming segments. This week, the company received approval to support sports betting in the state of Virginia. Nuvei can now offer its payment technology to licenced gaming operators across the state.
Image source Nuvei.