On April 16, Nuvei announced that it has entered into a definitive agreement to acquire Mazooma Technical Services, a leading U.S. provider of gaming and sports wagering payment technology.
Nuvei (NVEI) will acquire Mazooma for approximately $56 million, with additional payments up to a maximum amount of around $315 million dependent on certain performance criteria.
Nuvei’s chair and CEO Philip Fayer said, “Mazooma will enhance and expand Nuvei’s portfolio of alternative payment methods with a leading ACH platform with both pay-in and pay-out functionality, developed and used exclusively for online gaming in the U.S.”
“Because of low credit card acceptance rates, ACH is a must-have capability and solution in payments for online gaming and sports betting operators today. Additionally, this acquisition will not only give Nuvei the necessary product functionality, but also the vendor registration, compliance, and operational infrastructure to address merchant’s requirements in any regulated U.S. state. This acquisition will truly solidify our commitment to and presence in the U.S. online gaming and sports betting industry,” added Fayer.
The transaction must be approved by the Toronto Stock Exchange and meet all closing conditions. It is expected to close in the second quarter of 2021. (See Nuvei stock analysis on TipRanks)
About a month ago, National Bank analyst Richard Tse reiterated a Buy rating on the stock and raised his price target to C$100.00 from C$85.00 (16% upside potential).
Tse stated, “We continue to believe Nuvei is at the forefront of a payments market that continues to undergo a meaningful transformation. Within that market Nuvei remains a disruptive player with outsized growth relative to the sector.”
Overall, consensus among Wall Street analysts is a Strong Buy based on 6 Buys and 1 Hold. The average analyst price target of C$96.33 implies 12% upside potential to current levels.