Multibillion-dollar payments technology company Nuvei Corp. has put out an all-cash offer to purchase British online payments processing company SafeCharge. This comes at a time when there has been a massive consolidation in the online payment sector, and could mean big things for both companies.
SafeCharge is majority owned by Israeli businessman Teddy Sagi, who holds 68.30% of the stake in the firm. Teddy co-founded the company in 2006, along with David Avgi, who is the current CEO. Sagi also founded the gambling software company Playtech, although he has since sold off his shares and moved on.
Since their inception in 2006, SafeCharge has become one of the largest providers of payments solutions for the online gambling industry. Their list of high-profile clients currently includes William Hill, Paddy Power, Betfair, The Rank Group, Ladbrokes, Sisal, and other major Internet gambling companies.
Nuvei is an American based company and a provider of payment processing solutions to the B2B, e-commerce and point-of-sale industries. Until recently, the company was known as Pivotal Payments, but rebranding effort in 2018 led them to the more sector-appropriate name of Nuvei.
According to published reports, Nuvei has offered SafeCharge a cash sum of $889 million for the business. As part of the terms of agreement, shareholders will receive and amount of $5.50 for every share they hold in the company. Investors will also receive a final dividend payment of 7.22 pence per share. To make sure the deal runs smoothly, Shore Capital will be acting as financial advisers for SafeCharge, while Credit Suisse will be action for Nuvei.
The cash deal is expected to create huge expansion opportunities for both SafeCharge and Nuvei. Acquisitions have been an essential part of the Nuvei expansion strategy in their bid obtain new clients across the globe, and create a stronger market hold. For SafeCharge, the cash deal will be a major boost for the company who can now rely on their new owner’s experience in the tech and digital payments industry to pursue the North American and Canadian market, with substantial financial backing of course.
The news has come at a time when mergers and acquisition deals abound. In the opening months of 2019, Worldpay and FIS agreed to merge their operations and create a $35 billion plus entity. The deal is expected to have major consequences for both parties with FIS able to offer more payment facilities, while Worldpay aim to expand their footprint and speed into emerging technology markets.