Novacap and CDPQ acquire stakes in Pivotal Payments

Novacap and Caisse de dépôt et placement du Québec (CDPQ) have invested in Pivotal Payments (Pivotal), a provider of payment processing solutions and merchant services.

Novacap and CDPQ acquired undisclosed stakes from co-founders Philip Fayer and Lester Fernandes. The transaction valued Pivotal at approximately $525 million or US $430 million.

With operations throughout North America and Europe, Pivotal serves more than 50,000 merchants. Over US $14 billion is transacted on its various platforms every year. In addition to the services it provides to traditional point of sale businesses, Pivotal also offers global e-commerce solutions, advantageously positioning the company to benefit from this sector’s significant growth and from integrating with payment-enabled software companies.

“This investment marks an important step for Pivotal. We pursued an aggressive growth plan over the last few years, and we have chosen the best partners to support us going forward,” said Philip Fayer, Pivotal’s founding President and Chief Executive Officer.

“Novacap is especially proud to be associated with Pivotal, a business with solid roots and a promising future,” said Pascal Tremblay, President and Managing Partner at Novacap. “We are eager to begin working with Philip and his team and actively participate in his ambitious growth plan.”

“By investing in Pivotal, la Caisse is supporting the growth of a Québec business that is already well-established in its sector and focuses on innovation to expand internationally,” explained Christian Dubé, Executive Vice-President, Québec at la Caisse. “This investment is an example of how we want to play an active role in the digitization of business so that Québec companies can be fully-equipped to benefit from the rise of e-commerce.”

RBC Capital Markets acted as a financial advisor to Novacap for this transaction. FT Partners acted as exclusive financial advisor to Pivotal for this transaction.

photo credit: PourquoiPas via pixabay

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal and CanadaMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, the most sophisticated and advanced all private capital and public market financing database.