May 22, 2019 / 9:03 AM / a month ago

Payments tech firm Nuvei to buy Britain's SafeCharge for $889 million

(Reuters) - U.S. payments technology firm Nuvei Corp said it would buy SafeCharge International Group Ltd in an all-cash deal valued at $889 million to expand in the fast-growing electronic payments industry.

The companies said SafeCharge shareholders would receive $5.55 in cash for each share held, representing a 25% premium to the stock’s Tuesday closing price.

The deal comes as the industry is going through an aggressive consolidation and follows a $35 billion deal by U.S. firm FIS to buy Worldpay earlier this year.

Shares of SafeCharge rose as much as 24% to 435 pence, closer to the 436 pence offered by Nuvei, before paring some of the gains.

SafeCharge said its shareholders would still receive the previously announced final dividend of 7.22 pence per share.

Previously known as Pivotal Payments, the Plano, Texas-based company renamed itself to Nuvei late last year.

The deal also comes on the heels of market debut of payments peers Britain’s Network International, Italy’s Nexi and UAE’s Finablr.

Credit Suisse and Shore Capital are acting as financial advisers for Nuvei and SafeCharge, respectively.

Reporting by Samantha Machado in Bengaluru; editing by Gopakumar Warrier

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