Find out the thinking behind the deal
National Bank of Canada has announced its acquisition of shares in EVO Payments, a payment technology, and service provider.
The move was made to mitigate risk and improve EVO Payments’ development process, as the financial institution takes into account the economic uncertainty caused by the COVID-19 pandemic.
The bank said its investment in the technology was aimed at reinforcing investors’ responsibility as fiduciary individuals, prioritizing the process of maximizing long-term gains for its unit holders while using sector-specific research.
The move would provide the company with the capability to improve and strengthen its services, National Bank said, in addition to focusing on sustainable socioeconomic development.
The acquisition was aimed to purchase a new position worth more than $3 million (USD) in total, and helped bolster the bank’s focus on securing profitable returns to mitigate possible risks from portfolio growth.
It marks a latest stage in the company’s growth strategy, with the Quebec-based financial institution having reported a 156% increase in its stake in fintech Nuvei this month.
National Bank previously owned 0.43% of Nuvei’s net worth – estimated to value over $15.4 million (USD) by the end of 2023’s first quarter – after adding an extra 370,350 shares in the fourth quarter of last year.
