In a crowded field of digital payment technology services providers, startups have had to hit the ground running to avoid getting snapped up or shut out by major brands or better-financed rivals. U.S. fintech Paya has encountered a great deal of success with its integrated payments solutions, which deliver more than $1 billion in revenue to 2,000 government agencies across the country. The company’s successful 2020 public launch was followed by a period of major growth for Paya, with the only foreseeable obstacle to its success being the IPO of Montreal-based rival payments servicer Nuvei in the same year.
As of January 2023, Paya no longer has to worry about keeping ahead of its Canadian competitor. In a deal comprised of $1.3 billion in cash and debt financing, Nuvei has acquired Paya outright, and plans to integrate Paya’s infrastructure and client network into its own as soon as possible. Nuvei Chair and Chief Executive Officer Philip Fayer described the purchase as key to his company’s expanding fraud and risk management tools, among other things.
“The proposed acquisition of Paya is a powerful next step in the evolution of Nuvei, creating a preeminent payment technology provider,” said Fayer in a statement on the acquisition. “The proposed transaction will […] accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets, and enhance the execution of our growth plan.”