Stock Market Today, June 15: Payoneer Global Jumps After Nuvei Agrees to Acquire Company for $2.75 Billion
Today’s Change
(4.15%) $0.28
Current Price
$7.03
Key Data Points
Market Cap
$2.3B
Day’s Range
$6.99 – $7.05
52wk Range
$4.08 – $7.67
Volume
78.6M
Avg Vol
4.9M
Gross Margin
78.52%
Payoneer Global (PAYO +4.15%), which provides cross-border payment solutions for SMBs, closed Monday at $7.03, up 4.15%. The stock moved higher after news that Nuvei agreed to acquire Payoneer for $7.40 per share in cash. Trading volume reached 78.4 million shares, about 1,191% above its three-month average of 6.1 million shares. Payoneer Global IPO’d in 2020 and has fallen 27% since going public.
How the markets moved today
The S&P 500 rose 1.67% to 7,555, while the Nasdaq Composite gained 3.07% to finish at 26,684. Within financial technology, industry peers Paymentus closed at $21.26, up 0.66%, and Flywire ended at $15.31, gaining 4.08% as digital payments names advanced.
What this means for investors
Roughly one week after takeover buzz about Nuvei acquiring Payoneer for $2.7 billion originally hit the press, the two companies agreed to a $2.75 billion deal, confirming the rumors. Since the acquisition rumors first leaked, Payoneer stock has risen an additional 8%, narrowing the gap between its $7.03 share price and Nuvei’s updated $7.40 cash offer.
The remaining gap is only about 5%, suggesting the market believes the deal is likely to go through.
While Payoneer’s average annual sales growth was roughly 18% over the last five years, and it generated solid free cash flow (FCF), its stock struggled to take off. This languishing share price, steady double-digit revenue growth, and reasonable valuation at 19 times FCF made it a prime takeout candidate for Nuvei.
