Tuesday, 02 January 2024 12:17 GMT

Nuvei To Acquire Payoneer For $7.40 A Share In A $2.75 Billion Cross-Border Payments Deal


Date:

(MENAFN- Investor Ideas) Investorideas ( newswir ) a trusted platform for investing ideas including tech stocks issues a market update as Nuvei agrees to acquire Payoneer in a $2.75 billion cross-border payments deal.

Key takeaways
    Nuvei agreed to buy Payoneer for $7.40 per share in cash, implying an equity value of about $2.75 billion.

    PAYO rose $0.29 to $7.04, about 4.3%, still below the $7.40 cash offer.

    The companies said the combined platform would span 190+ countries and process more than $500 billion in annual payment volume at close.

    The deal is expected to close in mid-2027, subject to shareholder and regulatory approvals.

The deal

Nuvei - which did not state a public exchange ticker in the release - and Payoneer (Nasdaq: PAYO) said they entered a definitive agreement under which Nuvei will buy all outstanding Payoneer shares for $7.40 in cash, implying an equity value of about $2.75 billion. The companies said the combined platform would cover 190-plus countries and territories and, at close, is expected to generate about $3 billion in annual revenue and process more than $500 billion in annual payment volume for more than 2.4 million customers. The deal is expected to close in mid-2027, subject to shareholder and regulatory approvals. In the latest available quote feed, PAYO traded at $7.04, up $0.29 from the prior close.

PAYO trading at $7.04 against a $7.40 cash offer leaves roughly a 5% spread - the market's way of pricing the long, mid-2027 close and the regulatory approvals still ahead.

The deal is expected to close in mid-2027. Completion is subject to shareholder and regulatory approvals, which is why the timeline runs more than a year out and why PAYO still trades below the $7.40 offer.

Nuvei's release did not state a public exchange ticker. Payoneer (Nasdaq: PAYO) is the publicly listed company in the transaction, so readers should confirm Nuvei's current listing status directly before relying on it.

The bid arrived alongside the day'sbroader risk rally and the morning's other marquee deal,Fox's acquisition of Roku.

Disclosure

All share prices referenced are intraday, captured at the timestamps in the source market data, and are not closing prices. This article is editorial market commentary and interpretation, not investment advice. Price targets, forecasts, and company guidance are attributed to their named sources.

Related coverage:Fintech and Technology Stocks Directory.

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