A deal to acquire Canadian payments processor Nuvei is imminent, sources told Reuters.

© Reuters.

Written by Anirban Sen and Mrinmay Dey

(Reuters) – Private equity firm Advent International is in advanced talks to acquire Nuvei, a Canadian payments technology company that has received financial backing from actor Ryan Reynolds, people familiar with the matter said on Saturday. He told Reuters.

A deal will be announced soon, the people said, speaking on condition of anonymity because the discussions are confidential.

But the talks could still break down, the sources added. The sources did not disclose terms of the proposed deal.

The acquisition of Nuvei, which gives Advent a market capitalization of more than $3 billion, would be one of the largest private acquisition deals at a time when private equity deals are slowing.

The Wall Street Journal first reported on the meeting between Advent and Nuvei last Saturday.

Advent declined to comment and Nuvei did not immediately respond to Reuters’ request for comment.

If successfully completed, this acquisition deal would be the second in the past 12 months for the company backed by Canadian-American Hollywood star Ryan Reynolds.

Last March, T-Mobile acquired Ka’ena Corp, owner of Mint Mobile, the Deadpool actor’s low-cost wireless service provider. The transaction size amounts to approximately $1.35 billion (approximately 1.35 trillion won).

Nuvei’s Toronto- and Nasdaq-listed shares have fallen since its $1.3 billion acquisition of Paya Holdings last year. Last April, short seller Spruce Point Capital Management LLC disclosed its short position in Nuvei, claiming that the acquisition was holding up Paya’s business because it had lost market share prior to the acquisition.

Two months later, Spruce Point said it no longer held a short position in Nuvei after its stock price fell to its target range.

Nuvei, which provides technology services to help companies process transactions, went public in September 2020 and raised $700 million, the largest fund for a technology company offered on the Toronto Stock Exchange at the time.

According to its website, it processes payments for General Motors (NYSE:), Microsoft (NASDAQ:), Shein and others and operates in 200 markets.

Transactions in the financial services sector have been on the rise in recent months. In February, Capital One agreed to acquire Discover Financial in a deal valued at $35.3 billion.

Shift4, a payments processor with a market value of more than $6 billion, is currently in acquisition talks with potential buyers including Fiserv (NYSE:), Reuters reported last month.

Payment processors such as Shift4 and Nuvei have thrived during the COVID-19 pandemic as customers shifted to digital payment methods, but some have since struggled to maintain growth amid increased competition and rising inflation.

Nuvei’s Toronto-listed shares are down significantly from their 2021 all-time high of C$170 ($125.54). On Friday, the company’s shares closed at just over C$29, with its New York-listed shares closing at $21.76.

($1 = 1.3541 Canadian Dollars)