MONTREAL - Institutional Shareholder Services (ISS), a prominent proxy advisory firm, has recommended that shareholders of Nuvei Corporation (Nasdaq: NVEI) (TSX: NVEI) vote in favor of a proposed acquisition by Neon Maple Purchaser Inc., a subsidiary of private equity firm Advent International. The endorsement comes ahead of the special meeting scheduled for June 18, 2024, where shareholders will vote on the plan of arrangement under the Canada Business Corporations Act.
Under the terms of the arrangement, Neon Maple Purchaser Inc. will purchase all the outstanding subordinate and multiple voting shares of Nuvei, excluding the rollover shares, at US$34.00 per share in cash. ISS's recommendation is based on the premium offered compared to the unaffected share price, the reasonable sale process and valuation, and the potential risks if the deal does not go through.
Nuvei's board of directors, with independent directors forming a special committee, has unanimously recommended that shareholders approve the arrangement, citing it as being in the best interests of the company and its shareholders. This follows the special committee's endorsement of the transaction.
Shareholders are urged to submit their votes by 10:00 a.m. (Eastern time) on June 14, 2024, to ensure their representation at the virtual meeting. Nuvei, a Canadian fintech company, provides payment technology solutions globally, supporting transactions in over 200 markets with local acquiring in 50 markets.
The management proxy circular and other relevant documents are available on SEDAR+ and EDGAR for shareholder review. Nuvei has emphasized the importance of shareholder votes for the resolution, regardless of the number of shares owned.
The press release also contains forward-looking statements regarding the proposed transaction and its anticipated benefits. However, it notes the inherent risks and uncertainties, including the possibility that necessary approvals may not be obtained, or the transaction may not be completed as planned, which could impact Nuvei's business and financial condition.
This article is based on a press release statement from Nuvei Corporation.
InvestingPro Insights
As Nuvei Corporation (NASDAQ: NVEI) approaches a pivotal moment with its upcoming shareholder vote on the acquisition by Neon Maple Purchaser Inc., investors may consider several financial metrics and analyst insights from InvestingPro. Nuvei's market capitalization stands at $4.45 billion USD, reflecting its significant presence in the fintech sector. Despite a challenging P/E ratio, which currently reads at -217.3 for the last twelve months as of Q1 2024, analysts are optimistic about the company's future profitability. In particular, InvestingPro Tips indicate that net income is expected to grow this year, and three analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's financial trajectory.
Investors should note the company's strong performance over recent months, with a price total return of 22.16% over the last three months and an impressive 56.56% over the last six months. This trend aligns with the InvestingPro Tip highlighting a large price uptick in this period, potentially validating the acquisition premium offered. Furthermore, the revenue growth for Nuvei has been robust, with a 43.29% increase in the last twelve months as of Q1 2024, indicating a solid expansion of its payment technology solutions business.
For those considering a deeper analysis, InvestingPro offers additional tips on Nuvei, providing investors with a more comprehensive understanding of the company's financial health and market position. To access these insights and more, visit https://www.investing.com/pro/NVEI and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable information for your investment decisions.
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