ECONOMY

Canada’s Nuvei buys Cyprus-based SafeCharge

canada-s-nuvei-buys-cyprus-based-safecharge

SafeCharge International Group Limited, which fully owns Cyprus-based SafeCharge Limited, is set to merge with Canadian payments services provider Nuvei in a cash deal worth $889 million.

Nuvei and SafeCharge announced last week they had reached an agreement on the terms of a recommended all-cash acquisition of SafeCharge by Nuvei. SafeCharge has about 400 employees worldwide, of whom over 50 are based in Cyprus.

SafeCharge provides global omnichannel payment services from card acquisition and issuing to payment processing and checkout, all underpinned by advanced risk management solutions.

Following consolidation in the rapidly growing electronic payments industry, the deal will create a company with an estimated revenue of $300 million and a transaction volume of $30 billion. The EBITDA of the combined firm is estimated at about $100 million.

The merger is good news for Cyprus as the company aims to maintain its presence on the island while enabling SafeCharge to gain exposure in Nuvei’s geographical area, which is primarily Canada and the US. Furthermore, Nuvei will benefit from SafeCharge’s operations in European markets.