Why Are Paya Shares Trading Soaring Today

Canadian fintech company Nuvei Corp NVEI agreed to scoop Paya Holdings Inc PAYA, a leading provider of integrated payment and commerce solutions in an all-cash transaction at $9.75 per share for total consideration of $1.3 billion.
The purchase price is a 25.2% premium on Paya's January 6 closing price of $7.79.
Nuvei's Chair and CEO, Philip Fayer, said, "It will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets and enhance the execution of our growth plan."
"We continue to see strong momentum in our high-growth and underpenetrated middle market partners in durable end-markets, and believe that Nuvei's resources will enable us to continue our mission of solving complex business problems with easy-to-use payment solutions," CEO Jeff Hack said.
Nuvei will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price.
The transaction will likely close by the end of the first quarter of 2023.
Nuvei expects to finance the acquisition with a combination of cash on hand, an existing credit facility, and a new committed $600 million first-lien secured credit facility.
The proposed transaction will likely deliver up to $21 million of estimated run-rate cost synergies within 24 months and provide attractive revenue synergy upside potential by bringing Nuvei's global capabilities as additional offerings to Paya's partners and customers.
The transaction will likely be accretive to adjusted EPS in 2023.
Nuvei held $754 million in cash and equivalents as of September 30, 2022.
Price Action: PAYA shares traded higher by 24.8% at $9.72 in the premarket on the last check Monday.

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Why Are Paya Shares Trading Soaring Today