Montreal-based fintech company Nuvei has agreed to buy licensed Brazilian payments provider Pay2All in a deal it says will help to expand its reach in the broader Latin American market.

Nuvei said in a statement that the deal will allow it to provide payment services as an “issuer of electronic currency” through Pay2All’s payment institution licence from Brazil’s central bank. Nuvei will accept payments, manage e-wallets and betting accounts, and integrate with all of Brazil’s local payment systems.

CEO Philip Fayer says the agreement marks a major milestone in its global expansion strategy and allows it to offer “fully localized” payment methods to Brazilian businesses.

The proposed transaction is subject to closing conditions that include regulatory approvals by the Central Bank of Brazil.

By acquiring Pay2all, Nuvei will gain access to a licensed payment provider in Brazil’s regulated online gaming and sports betting market. Nuvei noted that Stastita forecasts that once open, Brazilian iGaming market revenue will reach $5.6 billion CAD by 2029.

“Securing a Payment Institution license in Brazil has been a top priority, and will mark another significant milestone in our global expansion strategy,” added Fayer. “The proposed transaction not only strengthens our presence in LatAm but also demonstrates our commitment to providing fully localized and modern payment solutions to businesses in Brazil.

“We’re excited to offer our full suite of services to help drive growth for the rapidly growing eCommerce and iGaming operators in this dynamic market.”

Nuvei has already taken steps in the LatAm market. In February, it became the first global payments company in Colombia to offer direct local acquisition.

Nuvei set to go private

Canadian company Nuvei has eyes on the Brazilian market at a time when the company is preparing to be taken private by a U.S. private equity firm.

In early April, Nuvei announced it had signed a deal to be acquired by Boston-based Advent International in a deal that valued the fintech firm at around $8.5 billion CAD. Nuvei went public in the Toronto Stock Exchange’s largest tech IPO ever in September 2020.

When the deal closes, expected to be early next year, Nuvei will continue to be based in Montreal and Fayer will remain as CEO and chair.

That announcement of this deal came weeks after Nuvei revealed it had formed a special committee to evaluate expressions of interest from potential buyers.

Nuvei says it has a presence in more than 200 markets across the world, with local acquiring in 50 markets and connectivity to 680 local and alternative payment methods. In Ontario, it provides payment technology to betting operators including GAN and 888 in Ontario. In 2023, it added Vancouver-born Deadpool actor  Ryan Reynolds to its investor ranks after closing a billion-dollar acquisition of U.S. payment and commerce solutions company Paya Holdings.