PAYO Stock Heads For Its Best Day In Four Years – An Acquisition Buzz Has Got Investors Talking

According to a Reuters report, Canadian payments company Nuvei is in advanced talks to acquire Payoneer.

• The deal, worth about $2.7 billion, could be reached in the coming days, the report added.
• The purchase price includes Payoneer’s cash holdings, implying an enterprise value of roughly $2.3 billion.
• The acquisition would expand Nuvei’s presence in emerging markets as Payoneer operates in more than 190 countries and territories.

Shares of Payoneer (PAYO) soared over 27% on Tuesday, marking their biggest intraday gain since May 2022, after a report said Canadian payments company Nuvei is in advanced talks to acquire the cross-border payments provider.

PAYO shares were trading at their highest level in more than four months and breached their 200-day moving average (200-DMA) for the first time in that period.

Nuvei’s $2.7B Offer

According to a Reuters report on Monday, Nuvei is reportedly in advanced discussions to acquire the cross-border payments provider in a deal valued at about $2.7 billion. The proposed purchase price includes Payoneer’s cash holdings, implying an enterprise value of roughly $2.3 billion. As of Monday’s close, PAYO had a market cap of around $1.7 billion.

The report added that a deal could be reached in the coming days. Nuvei is backed by private equity firms Advent International and Novacap, as well as Canadian investment group CDPQ.

What Would Nuvei Get From PAYO Acquisition?

If completed, the acquisition would combine Nuvei’s merchant payment-processing business with Payoneer’s global network, which enables payments to suppliers, freelancers, and online sellers.

The acquisition would expand Nuvei’s reach in emerging markets, where Payoneer has established a strong customer base, as well as partnerships with major online marketplaces such as Amazon, Walmart, and eBay.

According to Payoneer’s official website, the company operates in more than 190 countries and territories and supports 70 currencies.

How Did Retail Traders React?

Retail sentiment on Stocktwits remained in the ‘bullish’ territory over the past 24 hours, amid ‘high’ message volumes. However, chatter was

One user said Payoneer has “no reason” to accept the “lowball” offer.

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Another user called the offer “disappointing.”

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PAYO shares have gained around 15% so far this year.

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