Nuvei Corp Offers to Purchase SafeCharge
Posted on 2019-05-28 by Sean Williamson
Over the past six months, the online payment processing industry has seen a huge shift with major consolidations, purchases and mergers. The sector has once again been shaken up with Major technology firm Nuvei Corp offering to purchase British payment processing company SafeCharge for a cash offer of $889 million. If successful, the sale of SafeCharge could provide huge leverage for both parties and a significant milestone for the industry.
Nuvei Corp is a hugely successful North American firm that provides technology-rich payment processing solutions in the point of sale, e-commerce and B2B industries across the globe. If their name doesn’t sound too familiar it is because they were previously trading as Pivotal Payments until a major rebrand last year. The name change and brand revamp was agreed on in order to align the company with more of their focus customer base.
A Major Consolidation
SafeCharge is a British-owned payments company who have actively involved in the online gambling industry since the early 2000’s. Over the past 5 years, SafeCharge has become one of the leading payment solution providers for the iGaming industry, with major clients such as the Rank Group, Ladbrokes, Betfair, William Hill, Paddy Power and Sisal. SafeCharge is majority owned by Israeli businessman Teddy Sagi, previously the founder of Playtech. He co-founded the company in 2006 with current CEO, David Avgi. Today, Teddy holds 68.30% stake in the firm and will gain the most from its sale.
According to reports, Nuvei has offered to purchase SafeCharge for a whopping $889 million in cash. As part of the deal, SafeCharge shareholders would receive a cash sum of $5.55 for each share they hold in the company. SafeCharge investors would also receive a previously mentioned final dividend payout of 7.22 pens for every share. To ensure that both parties are on board with the sale, Shore Capital will be advising SafeCharge on the transaction while Nuvei will be using the services of Credit Suisse.
Benefits for SafeCharge Shareholders
Speaking to the press, Nuvei CEO and Chairman, Philip Payer said the company was hugely excited about the sale. He believes that by combining resources they will create a global technology and payments provider rarely seen in the industry. According to SafeCharge Chairman, Roger Withers, the company’s board has fully agreed with the recommended cash offer by Nuvei. They believe that the offer represents significant value for the company and for SafeCharge shareholders.
SafeCharge CEO David Avgi added that both parties have built up strong positions in their respective markets with minimal overlap, but still have shared values and ideas on entrepreneurship.