Paya Analyst Favours Nuvei Takeover Deal At Slight Discount

Anusuya Lahiri

January 9, 2023 1 min read

DA Davidson analyst Peter Heckmann had Buy on Paya Holdings Inc (NASDAQ: PAYA) and a price target of $10.00.
Nuvei Corp (NASDAQ: NVEI) agreed to acquire Paya in an all-cash transaction at $9.75 per share for total consideration of approximately $1.3 billion.
The proposed purchase price represents a 25% premium to Paya's closing share price on Friday.
Heckmann viewed the deal positively, though the purchase price represents a slight discount to the analyst's $10 price target.
The implied transaction multiple represents an enterprise value of approximately 16 times Heckmann's 2023 forecast for an adjusted EBITDA of $85.
Paya ended the 3Q with $156 million in cash and $248 million in debt, representing net leverage of approximately 1.3 times trailing EBITDA.
Price Action: PAYA shares traded higher by 24.33% at $9.69 on the last check Monday.