Canadian payment firm said to discuss buying Israeli-founded Payoneer for $2.7 billion

Israeli-founded fintech firm Payoneer is said to be in advanced talks to be acquired by Canadian payments firm Nuvei for about $2.7 billion.

Payoneer, a cross-border payments firm, and Nuvei could seal a deal in the coming days, Reuters reported, citing people familiar with the matter. However as advanced talks are still ongoing, it’s possible the plans could change and a deal may fall apart, the report said.

If a deal materializes, it would combine Nuvei’s payment processing business, helping merchants accept payments, with Payoneer’s online financial transfer platform for sending money to suppliers, freelancers and sellers.

Payoneer counts large online marketplaces among its clients, including Amazon, Walmart, Etsy, and eBay, and transfers payments between buyers and sellers on these platforms. A deal would also increase Nuvei’s reach in emerging markets where Payoneer has ​built a large customer base serving online businesses and freelancers for cross-border payments.

“We do not comment on speculation in the press,” Payoneer said in an e-mailed statement to The Times of Israel. “Given current market dislocations within the fintech and payments space, it’s not surprising that strategic and financial buyers are showing increased interest and looking for differentiated assets in the sector.”

“With our Board of Directors, we will always evaluate opportunities to enhance shareholder value and will act as rational stewards of shareholder capital,” Payoneer said.

The reported deal highlights increasing pressure on payment providers to expand offerings such as cross-border payments and grow globally through acquisitions, as competition intensifies and growth has slowed for traditional payment processing.

Back in 2021, Nuvei acquired Israeli fintech startup Simplex, a developer of a platform for buying and selling cryptocurrencies, for $250 million.

Payoneer was founded in 2005 in Israel by serial entrepreneurs Yuval Tal and Yaniv Chechik. The fintech firm started trading on Nasdaq in 2021 at a valuation of over $3 billion, but saw its market value drop below $2 billion earlier this year. Payoneer has a global workforce of over 2,000 employees,  1,000 of whom are based in Israel.

Although Payoneer’s revenue increased 8% ​to $1.05 billion last year, net income dropped 40% to $73.2 million due to higher ​operating expenses.