Novacap, CDPQ backed Nuvei closes US $889M acquisition of SafeCharge

Nuvei Corporation, a portfolio company of Novacap TMT V and Caisse de dépôt et placement du Québec (CDPQ), has completed the acquisition of SafeCharge International Group Limited (LSE-AIM: SCH) at US $5.55 per share for US $889 million

Nuvei financed by a combination of equity and debt securities to be subscribed by Nuvei’s major shareholders, CDPQ, Novacap and founder Philip Fayer.

Davis Polk & Wardwell LLP, Fasken Martineau DuMoulin LLP and Ogier (Guernsey) LLP acated legal advisers to Nuvei and Addleshaw Goddard LLP and Collas Crill LLP acated legal advisers to SafeCharge.

SafeCharge provides global omni-channel payments services from card acquiring and issuing to payment processing and checkout, all underpinned by advanced risk management solutions. Its fully featured proprietary payment platform connects directly to all major payment card schemes including Visa, Mastercard, American Express and UnionPay International, as well as over 150 local payment methods.

The acquisition creates a global leading payment solutions provider with significant scale, able to service clients of any size across the world. Montreal, Quebec, will become the worldwide headquarters for the combined organization.

For the financial year ended December 31, 2018, SafeCharge reported revenues of US $138.5 million and Adjusted EBITDA of US $37.3 million.

Montreal based Nuvei is privately held and controlled by founder, CDPQ and Novacap TMT.

photo credit: SafeCharge

News Release

Novacap completed its largest acquisition at US $889 million

Nuvei, one of Novacap’s portfolio companies, executes SafeCharge’s acquisition for US $889 million

MONTREAL, Aug. 14, 2019 /CNW Telbec/ – Novacap, one of Canada’s leading private equity firms, is proud to announce that its portfolio company Nuvei, a Montreal-based payment technology company, has completed the acquisition of SafeCharge International Group Limited for US $889 million. SafeCharge provides global omni-channel payments services from card acquiring and issuing to payment processing and checkout, all underpinned by advanced risk management solutions. Its fully featured proprietary payment platform connects directly to all major payment card schemes including Visa, Mastercard, American Express and UnionPay International, as well as over 150 local payment methods.

The acquisition creates a global leading payment solutions provider with significant scale, able to service clients of any size across the world. Montreal, Quebec, will become the worldwide headquarters for the combined organization.

Novacap played a critical role in this transformative and complex acquisition, which saw SafeCharge being privatized from the AIM stock exchange in London at a valuation of US $889 million. Nuvei’s acquisition of SafeCharge was done with great support from Novacap and Caisse de dépôt et placement du Québec (CDPQ).

The acquisition is highly strategic and complementary to both businesses, aimed at accelerating the growth of the combined organization. “By marrying SafeCharge’s market-leading technology and Nuvei’s established distribution channels in the US and Canada, Nuvei will now be able to deliver fully-supported payment solutions to its clients and distribution networks, regardless of size, vertical or geography,” said David Lewin, Partner at Novacap (TMT).

“I would like to thank our partner Philip Fayer for being the driving force behind this acquisition, while continuing to successfully excute on Nuvei’s strong growth potential, as well as CDPQ, our partner in Nuvei, for their constant support. I am very happy to say that Safeharge is the largest acquisition in Novacap’s 38 year history making Nuvei another Novacap platform that is a leader in its industry with headquarters in Montreal” added Pascal Tremblay, Novacap’s President and Managing Partner (TMT).

“Without Novacap and CDPQ, Nuvei would not have been able to complete this acquisition,. I am very proud to have them as my partners” stated Philip Fayer, Nuvei’s Chairman and CEO.

About NUVEI

Nuvei is the first-ever community of payment experts. They provide fully-supported payment solutions designed to promote and advance our partners’ success. Nuvei works with ISOs, ISVs, payment facilitators, developers, and eCommerce platforms, supporting them with the technology, expertise, and customer service they need to stand out. Backed by their full-service, globally connected platform, their vision is to build a network in which all partners can truly thrive. Nuvei’s goal is to create bigger and better payment opportunities for all, paving the way to great partnerships. Learn more at www.nuvei.com

About NOVACAP

Founded in 1981, Novacap is a leading Canadian private equity firm with $3.2 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap’s deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 38 years, Novacap has invested in more than 90 companies and completed more than 130 add-on acquisitions. The company has offices in Toronto, Ontario and Brossard, Quebec. For more information, please visit www.novacap.ca.

About Caisse de dépôt et placement du Québec (CDPQ)

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2019, it held CA326.7 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

SOURCE Novacap Management Inc.

For further information: Alexandra Troubetzkoy, Communications and Marketing Director, T : 450 651-5000 p.291, atroubetzkoy@novacap.ca

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.