By Adriano Marchese
Payfare said Monday that it had agreed to be acquired by an affiliate of payments and financial services technology provider Fiserv for 201.5 million Canadian dollars ($140.2 million).
The digital banking solutions company, which serves workers in the gig economy, said that Fiserv's affiliate company, 1517452 B.C., will acquire the company's shares for C$4.00 apiece.
The company's shares have been under pressure since September, when Payfare said it was withdrawing guidance for the year after failing to secure a renewal of its contract with DoorDash, a deal that provided a substantial portion of its revenue. The stock plummeted nearly 75% following the news, and is currently down 66% year to date at C$2.11.
Soon afterward, Payfare launched what it called a comprehensive strategic review process to explore and evaluate different options to enhance the company's value.
The purchase price represents a premium of about 92% to the 60-day volume weight average trading price, but is well below the 52-week high of C$8.90 reached in August.
"This Transaction represents tangible recognition of the value and strength of what Payfare has built as we embark on this exciting new chapter," Chief Executive Marco Margiotta said.
Payfare said it expects the transaction to close in the first half of 2025.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
December 23, 2024 07:31 ET (12:31 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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