Canadian fintech Nuvei to buy Australian Till Payments for a single $30.5 million payment
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Australian fintech company Till Payments is to be sold to Canadian fintech firm Nuvei, and local reports say that the sale will be done at a bargain price of only 50 million AUD ($30.5 million).
Till Payments’ financial struggles led to the firm’s downfall
The Australian Financial Review unveiled the price of the deal, noting that it is a significantly lower price than the company’s one-time valuation of $500 million. However, a lot has happened since then, with the first signs of trouble for the company emerging in early 2023, when Till had to lay off 120 employees.
However, investors had faith in the company despite the fact that it laid off 40% of its workforce, so they continued pouring money into the company, which managed to raise as much as $70 million during a Series D in March. The amount came quite close to the $80m that it previously raised in 2021 during a Series C round, which was still during the boom times.
After that, the company even managed to pick up top-up funding of $15 million in July of this year, despite the fact that it continued to hemorrhage funds. For example, Till reported a 140m AUD loss in a 12-month period ending in June 2022, and it lost another 136 million AUD in the previous fiscal year.
As the financial struggles continued, the firm’s valuation led to an opportunity that Nuvei was not willing to pass up.
Nuvei to integrate aspects of Till Payments
After the acquisition, it is expected that Till Payments will be broken down into several parts that Nuvei will integrate with its own payment stack.
It is also worth noting that the Canadian fintech managed to open an office in China not too long ago, which acts as part of an Apac expansion strategy. The same strategy led Nuvei to acquire licenses in several major tech hubs, including Hong Kong, Singapore, and Australia.
Nuvei spokesperson declined to comment on the reports of the deal, while Till Payments has not responded to requests for comment at this time.
Right now, Nuvei will likely continue to focus on improving its services and advancing them to fit customer expectations. The company’s Senior Vice President and Global Head of B2B Payments, Ben Weiner, recently stated that B2B payments are being rapidly reshaped by technical innovations.
He explained that CFOs of payments firms are focused in three main areas — working capital optimization; money-in or money-out process automation; and reducing risk across the enterprise.
