Nuvei Corporation (NVEI) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -12.77%. A quarter ago, it was expected that this company would post earnings of $0.47 per share when it actually produced earnings of $0.41, delivering a surprise of -12.77%. Over the last four quarters, the co ...

Revenue and Financial Performance - Nuvei's revenue is primarily generated from sales volume, with a significant portion being recurring due to the integration of its payment technology into customers' ERP systems[5] - Total volume increased by 22% to $61.7 billion for the three months ended June 30, 2024, compared to $50.6 billion in 2023[7] - Revenue increased by 13% to $345.5 million for the three months ended June 30, 2024, from $307.0 million in 2023[7] - Net income decreased by 54% to $5.3 million for the three months ended June 30, 2024, down from $11.6 million in 2023[7] - Adjusted EBITDA increased by 6% to $116.8 million for the three months ended June 30, 2024, compared to $110.3 million in 2023[7] - Revenue for the six months ended June 30, 2024, increased by $117.1 million or 21% to $680.6 million compared to $563.5 million in the same period of 2023[40] - Total volume rose to $121.8 billion from $93.0 billion for the six months ended June 30, 2023[40] - Adjusted net income increased by 2% to $125.1 million for the six months ended June 30, 2024, from $122.5 million in 2023[7] - Adjusted net income for Q2 2024 was $62,564,000, an increase of 7.5% from $58,093,000 in Q2 2023[16] Strategic Initiatives and Acquisitions - The company is actively pursuing strategic acquisitions to enhance its capabilities and market reach, including the acquisition of Paya[2] - The company acquired 100% of the shares of Till Payments for a total consideration of $36.9 million, consisting of $30.0 million in cash and $6.9 million of a loan receivable[9] - The acquisition of Paya has allowed the company to enter under-penetrated verticals such as B2B, healthcare, government, and non-profit, increasing its total addressable market[19] - Till Payments, acquired on January 5, 2024, contributed $17.7 million in revenue to the Company's consolidated revenue of $680.6 million, representing 3%[85] Market Presence and Growth Strategy - The company operates in over 200 markets globally, providing local acquiring in 50 markets, supporting 150 currencies and 716 alternative payment methods[5] - Nuvei aims to expand its market presence by enhancing customer relationships and driving cross-selling opportunities through its modular technology offerings[6] - The company plans to expand its presence in Asia Pacific, Middle East, Africa, and Latin America, focusing on local market needs and regulatory compliance[19] Financial Position and Liabilities - Total assets increased by $126.73 million to $5.26 billion as of June 30, 2024, reflecting growth from acquisitions[53] - Total liabilities increased by 3% to $3.17 billion, driven by higher segregated funds and obligations to merchants[53] - The company declared a dividend of $28.2 million, contributing to an increase in the deficit to $(256.48) million[53] - The revolving credit facility of $800 million remained undrawn as of June 30, 2024, providing additional liquidity[56] Operational Efficiency and Costs - Operating profit for the three months ended June 30, 2024, was $48.9 million, compared to $31.3 million in the same period of 2023, indicating improved operational efficiency[30] - Selling, general and administrative expenses increased by $6.7 million or 3% to $228.5 million, with commissions and employee compensation rising by 20% and 22%, respectively[36] - Cost of revenue rose by $14.1 million or 26% to $68.0 million, representing 19.7% of revenue, up from 17.6% in the prior year, primarily due to increased processing costs from Till Payments[34] Risks and Uncertainties - Economic and geopolitical uncertainties, such as regional conflicts, may impact the company's performance and strategic initiatives[3] - Foreign currency exchange rate fluctuations may negatively impact revenue, particularly for revenues denominated in currencies other than the US dollar[20] - The company has not seen any impact from the ongoing Middle East conflict on its operations and does not expect material adverse effects[20] Arrangement Agreement and Future Outlook - The company entered into a definitive arrangement agreement to be taken private by Advent, valuing the company at an enterprise value of approximately $6.3 billion[8] - The proposed transaction includes a cash price of $34.00 per share, representing a premium of approximately 56% to the closing price on March 15, 2024[8] - The Arrangement Agreement restricts the Company from taking specified actions without the Purchaser's consent until completion, potentially hindering capital raising and asset transactions[78] - The Company may incur a termination fee of $150 million if the Arrangement Agreement is terminated under certain circumstances, which could deter alternative transaction proposals[79] Internal Controls and Compliance - The Company's internal controls over financial reporting were assessed as effective as of June 30, 2024[83] - There were no changes to internal controls over financial reporting that materially affected their effectiveness during the three months ended June 30, 2024[84] - The company is required to disclose information regarding liabilities classified as non-current, including carrying amounts and covenant information, as per amendments to IAS 1 effective January 1, 2024[69]

Financial Performance - Total volume for the three months ended June 30, 2024, increased by 22% to $61.7 billion from $50.6 billion in 2023 [1] - Revenue for the same period rose by 13% to $345.5 million from $307.0 million [1] - Net income decreased by 54% to $5.3 million from $11.6 million [1] - Adjusted EBITDA increased by 6% to $116.8 million from $110.3 million [1] - Adjusted net income rose by 8% to $62.6 million from $58.1 million [1] - Net income per diluted share decreased to $0.02 from $0.07 [1] - Adjusted net income per diluted share increased by 5% to $0.41 from $0.39 [1] Six-Month Financial Overview - Total volume for the six months ended June 30, 2024, increased by 31% to $121.8 billion from $93.0 billion in 2023 [2] - Revenue increased by 21% to $680.6 million from $563.5 million [2] - Net income decreased by 84% to $0.5 million from $3.3 million [2] - Adjusted EBITDA rose by 12% to $231.6 million from $206.6 million [2] - Adjusted net income increased by 2% to $125.1 million from $122.5 million [2] - Net loss per diluted share was $0.02 compared to net income per diluted share of $0.00 [2] - Adjusted net income per diluted share remained stable at $0.83 [2] Proposed Transaction - The company entered into a definitive arrangement agreement to be taken private by Advent International, valuing the company at approximately $6.3 billion [4] - Advent will acquire all issued and outstanding shares for a price of $34.00 per share, representing a premium of approximately 56% to the closing price on March 15, 2024 [4] - The transaction was approved by shareholders on June 18, 2024, and received court approval on June 20, 2024 [5] - The transaction is expected to close in late 2024 or the first quarter of 2025, subject to customary closing conditions [6] Cash Dividends - The Board of Directors declared a cash dividend of $0.10 per share, payable on September 5, 2024, to shareholders of record on August 20, 2024 [9] - The total amount of the dividend is expected to be approximately $14 million, funded from the company's existing cash [9] Company Overview - Nuvei is a Canadian fintech company that provides technology for payment processing, risk management, and fraud prevention services [13] - The company operates in over 200 markets, offering local acquiring in 50 markets and supporting 150 currencies and 716 alternative payment methods [13]

Core Insights - Nuvei Corporation has entered into a definitive agreement to acquire Pay2All, a licensed Payment Institution in Brazil, marking a significant milestone in its global expansion strategy and strengthening its presence in the Latin American (LATAM) market [1][4] Group 1: Acquisition Details - The acquisition of Pay2All will enable Nuvei to offer comprehensive payment services in Brazil, including accepting payments, managing e-wallets, and processing local payment systems like Pagamentos Instantâneos (PIX) [2][3] - Securing a Payment Institution license is crucial for providing transactional services in Brazil's newly regulated sports betting and online gaming market, which is projected to reach US$1.97 billion in revenue in 2024, with a CAGR of 15.39% from 2024 to 2029, leading to a market volume of US$4.03 billion by 2029 [3][4] Group 2: Strategic Importance - The acquisition aligns with Nuvei's commitment to providing localized payment solutions in Brazil and enhances its capabilities in the rapidly growing eCommerce and iGaming sectors [4] - In 2024, Nuvei has already demonstrated its commitment to LATAM by being the first global payments company to offer direct local acquiring in Colombia and is also implementing local acquiring services in Mexico [4] Group 3: Company Overview - Nuvei is a Canadian fintech company that provides technology and insights for clients to succeed in over 200 markets, with local acquiring in 50 markets, 150 currencies, and 700 alternative payment methods [5]

Core Insights - Nuvei Corporation has partnered with Mastercard to launch a new off-ramping solution for converting digital assets, including cryptocurrencies, into traditional fiat currency through debit, credit, and prepaid cards [1][2] - This solution aims to bridge the gap between digital and traditional finance, allowing consumers to spend their converted assets via Mastercard's global network [1][4] - The integration of this off-ramping solution into Nuvei's modular payment platform enhances user experience by providing a simple and secure process for asset conversion [1][4] Company Strategy - The partnership with Mastercard aligns with Nuvei's mission to facilitate seamless transactions across the digital economy, enabling businesses and customers to connect through various payment methods [2] - Nuvei's strategy focuses on integrating traditional payments, open banking, and blockchain technology to create a unified experience for users [2][5] - The off-ramping solution is designed to be rapid and user-friendly, allowing consumers to convert a wide range of digital assets into fiat currency and transfer funds to their eligible Mastercard in near real-time [4][5] Market Position - Nuvei operates in over 200 markets, providing local acquiring in 50 markets, supporting 150 currencies, and offering 700 alternative payment methods [5] - The company’s technology and insights are aimed at helping customers and partners succeed both locally and globally with a single integration [5]

Bank of Montreal is reportedly leading a group of underwriters launching a $2.55 billion loan to back the previously announced acquisition of Canadian payments processor Nuvei. The loan will have a seven-year term and will help fund the $6.3 billion leveraged buyout led by Advent International, management, Novacap and CDPQ, Bloomberg reported Monday (July 8), citing unnamed sources. The proposed loan would be the biggest such deal since April, when a $2.6 billion loan was sold to fund KKR's purchase of a Br ...

Core Insights - The UAE is a significant market for Nuvei, with its eCommerce sector expected to exceed $10 billion in revenue by 2029, growing at a CAGR of approximately 9% from 2024 to 2029 [1] - Nuvei has secured a Retail Services Category II License from the Central Bank of the UAE, enhancing its local acquiring capabilities and reaffirming its commitment to the MENA region [5][6] - The company aims to connect its customers more deeply through payments, expanding its global licenses to support business growth in the UAE [3][4] Company Expansion - The Retail Services Category II License allows Nuvei to provide a comprehensive suite of payment technologies, including local acquiring, payment aggregation, and fund transfers [2] - Nuvei's expansion includes local acquiring capabilities in over 50 countries, with a focus on enhancing payment acceptance rates and reducing processing costs for customers [2][4] - The company has also recently obtained a Major Payment Institution license in Singapore and is the first global payments company to offer local direct acquiring in Colombia [3] Market Presence - Nuvei operates in more than 200 markets, offering local acquiring in 50 markets, 150 currencies, and 700 alternative payment methods [4] - The company has established a strong commercial presence and high-profile partnerships in the MENA region, supporting local and international customer growth [6] - The CEO expressed gratitude to the Central Bank of the UAE for facilitating the opportunity to launch services in a rapidly growing digital eCommerce market [7]

The Arrangement remains subject to the satisfaction or waiver of certain other closing conditions customary in a transaction of this nature, including the receipt of key regulatory approvals. Assuming that these remaining conditions to closing are satisfied, the Arrangement is expected to be completed in late 2024 or in the first quarter of 2025. About Nuvei Forward-Looking Statements In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events ...

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Shares that are not held by one of three rollover shareholders — Nuvei founder, chair and CEO Philip Fayer, certain investment funds managed by Novacap Management, and Caisse de dépôt et placement du Québec (CDPQ) — will be acquired for $34 in cash per share, according to the release. Fayer said at the time in a press release that the transaction "marks the beginning of an exciting new chapter for Nuvei." Shareholders approved the special resolution at a meeting held Tuesday (June 18), the Canadian FinTech ...