Bank of Montreal leads $2.55 billion loan to Nuvei loan

Reports have revealed that Bank of Montreal is leading a consortium of insurers to provide a $2.55 billion loan to fund the Nuvei acquisition.

The seven-year loan is to fund a $6.3 billion leveraged buyout, Bloomberg reported, citing unnamed sources. The financing would mark the largest such deal since April, when it secured a $2.6 billion loan to buy KKR’s Broadcom unit, according to Bloomberg.

According to the Financial Times, the first quarter of 2024 saw a significant increase in the number of major mergers and acquisitions (M&As), with the total value of the deals more than doubling compared to the same period last year. In the payments sector, recent deals have focused on expanded product offerings, B2B capabilities and cross-border functionalities.

First takeover announcement

Nuvei is a preeminent technology provider in the global payments industry, offering modular solutions for businesses to accept multiple payment methods and manage related services such as risk and fraud management. With a presence in over 200 markets and connectivity to 680 payment methods, Nuvei has processed over $200 billion in total volume and generated $1.2 billion in revenue in its 2023 financial statements.

In April 2024, Nuvei announced a definitive agreement for Advent International to take the company private in an all-cash transaction. Specifically, the initial agreement called for Nuvei to be taken private in an all-cash transaction valued at approximately $6.3 billion, with the support of major shareholders including Philip Fayer, Novacap Management Inc. and CDPQ. It is also worth noting that the company will remain headquartered in Montreal.

At the time, it was also revealed that Nuvei’s chairman and CEO would continue to lead the company following the acquisition, alongside the existing management team. Advent International, known for its investments in the payments sector, has contributed several resources and expertise to support Nuvei’s growth initiatives.

Nuvei shareholders approved the acquisition at a June 18 meeting following the company’s recommendation in a proxy. The final agreement represents a 42% increase over Advent’s original proposed consideration.