Nuvei to Buy Teddy Sagi’s SafeCharge for $889 Million

Nuvei has agreed to purchase Teddy Sagi-owned SafeCharge in the latest major deal in payment solutions sector

US payments technology firm Nuvei Corp. has made an all-cash offer to buy British online payment processing company SafeCharge International Group Ltd. amid a massive wave of consolidation in the sector.

SafeCharge is majority-owned by Teddy Sagi, who currently holds a 68.30% stake in the firm. The Israeli businessman co-founded the company together with its current CEO, David Avgi, in 2006. Over the years, SafeCharge has become one of the leading providers of payment solutions for the global online gambling industry, among other sectors. Its clients include Ladbrokes, The Rank Group, Sisal, William Hill, and Paddy Power Betfair, among a number of other major gambling companies.

Nuvei is a leading North American provider of technology-driven payment processing solutions for enterprises in the point-of-sale, B2B, and e-commerce industries. The company previously operated as Pivotal Payments but rebranded as Nuvei late last year.

Under the terms of Nuvei’s offer, the firm will pay $889 million in cash for SafeCharge. As part of the transaction, SafeCharge shareholders would receive $5.55 in cash for each share they hold. In addition, investors would also receive a previously announced final dividend of 7.22 pence per share.

Credit Suisse is acting as a financial adviser for Nuvei, while Shore Capital is advising SafeCharge. The deal is expected to be finalized in the third quarter of the year, subject to satisfaction or waiver of all relevant conditions and regulatory approval.

Expansion Opportunities

The deal is expected to create multiple opportunities for both Nuvei and SafeCharge to expand into the rapidly growing and highly competitive digital payments industry.

Growth through acquisitions has long been part of Nuvei’s strategy to cement itself in the payment services sector and to obtain new clients. As for SafeCharge, the transaction will boost its efforts to expand North America, taking advantage of its new owner’s more than 15 years of experience in the tech and digital payments markets of the United States and Canada and its large client base in the region.

Commenting on the deal, Nuvei Chairman and CEO Philip Fayer said that they are very excited about the combination of his company and SafeCharge and that the transaction “will create a truly global, leading payments technology solution provider with significant scale.”

SafeCharge Chairman Roger Withers said earlier today that the company’s board “is unanimously recommending this all-cash offer” as it presents “compelling value for SafeCharge Shareholders.”

SafeCharge CEO David Avgi added that the two companies “have built strong positions in the payment sector in their respective markets, with minimal geographic, customer or industry overlap” and that they “have similar shared entrepreneurial cultures.”

News about Nuvei’s bid to acquire SafeCharge arive amid a wave of merger and acquisition deals within the sector. Earlier this year, FIS and Worldpay agreed to merge their operations to create a $35-billion-plus powerhouse. The deal is expected to enhance FIS’ acquiring and payment offerings and significantly increase Worldplay’s distribution footprint and accelerate its entry into new markets.

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