FinTech IPO Index Slides 2.9% Amid Nuvei’s Go-Private Deal and Doma’s Acquisition News

Deal-making dominated the headlines this past week as the FinTech IPO Index lost 2.9%.

Nuvei’s stock gained 2.4%.

As reported by PYMNTS, Nuvei is being taken private in a $6.3 billion deal with private equity firm Advent International.

Nuvei CEO Philip Fayer will reportedly control nearly a quarter of the equity in the private company and expected to remain as the head of the firm.

In our coverage of the company’s latest earnings report, Nuvei’s fourth-quarter results showed that the company is seeing double-digit growth in demand and momentum from enterprise clients, and in the business-to-business (B2B) and independent software vendor (ISV)-related businesses. Total volumes were up 59% to $203 billion for 2023, and up 53% in the fourth quarter to $61.8 billion. Nuvei also noted that its pro-forma revenue growth in the fourth quarter for its B2B, government and ISV channels were up 19% year over year, to $59 million, representing 18% of the consolidated top line recorded during the quarter.

In other deal-related news, Doma Holdings entered into a definitive agreement and plan of merger with Title Resources Group (TRG). Under the terms of the deal TRG will acquire all of the outstanding shares of Doma for $6.29 per share of common stock in an all-cash transaction, an approximate premium of 43% over Doma’s closing share price at the end of last month.

After the close of the transaction, Doma’s underwriting division, Doma Title Insurance, and its technology division, expected to be renamed Doma Technology, according to the release, are expected to operate as subsidiaries of TRG. The deal is expected to close in the second half of the year.

Doma’s shares surged 37.4%

Sezzle Plummets

nCino shares lost 2.8%. The company said this past week that it expanded omnichannel functionality of its Consumer Banking Solution for banks and credit unions. The expansion helps bankers interact with consumers where and how those customers want to engage, the company said in an announcement. nCino also said it simplified the solution’s multiproduct origination experience by creating more intuitive workflows for both front-end users and in-branch bankers.

Alkami’s stock gave up 3.4%.

In an announcement this week,  the company said it has formed a partnership with SWIVEL. Through Alkami’s single sign-on integration with SWIVEL’s Transaction Enablement Platform, Alkami’s bank and credit union clients will be able to tap into SWIVEL’s loan payments capabilities, offering their account holders the benefits of greater choice, speed and flexibility in their loan payment options.

Per the announcement, SWIVEL’s Payments Processing solution offers financial institutions streamlined ways to originate, track and process automated clearing house and card-based payments.

Janover said that organic website traffic increased more than 70% in 2023 compared to 2022 and also reported that it achieved over 100 million organic impressions on Google for the year ending December 2023. In the company’s latest earnings report, Janover said that revenue per transaction increased 54% year over year for the year ending Dec. 31.

Revenue from small business transactions, which includes Small Business Administration (SBA), increased more than 100%, for the second consecutive year. Janover’s stock gave up 15.3% through the past five sessions.

Elsewhere, shares of Sezzle plunged 29.6%. In an article that appeared in Financial Review, Australian short seller Nathan Koppikar, who manages a reported $410 million for Orso Partners, said that he was looking at Sezzle as a possible short-selling position.

“Since they moved their listing to the Nasdaq that’s gotten us a lot more interested in it,” he said, as quoted in the article.