Novacap and CDPQ backed Nuvei to acquire SafeCharge for US $889M

Nuvei Corporation and SafeCharge International Group Limited (LSE-AIM: SCH) have entered into a definitive agreement pursuant to which Nuvei will acquire the entire issued and to be issued ordinary share capital of SafeCharge at US $5.55 or £4.36 per SafeCharge share, valuing the fully diluted share capital of SafeCharge at approximately US $889 million or £699 million.

Montreal based Nuvei is a leading provider of global payment solutions. London, UK based SafeCharge is a provider of online payment processing for online and mobile merchants.

Northenstar Investments Ltd, an investment holding company controlled by Teddy Sagi, SafeCharge’s majority shareholder controlling 103,995,185 SafeCharge Shares (68.3%), has agreed to support the transaction.

Nuvei is backed by Novacap and Caisse de dépôt et placement du Québec (CDPQ) which acquired minority stakes in Nuvei, formerly Pivotal Payments in September 2017. Nuvei is currently owned by Chairman & CEO Philip Fayer (39%), CDPQ (22.9%) and Novacap (27.2%). CDPQ and Novacap collectively control the majority of Nuvei board.

Nuvei intends to fund the acquisition through a combination of equity and debt securities to be subscribed by Novacap, CDPQ and Fayer, and interim third party debt facilities. Upon the scheme of arrangement becoming effective, Nuvei intends to enter into alternative debt financing arrangements with BMO Capital Markets Corp. to replace the interim debt facilities.

photo credit: Safecharge

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.