Payfare the latest Canadian tech sold to Americans

Throw another one on the pile.

This morning, Toronto-based Fintech player Payfare (Payfare Stock Quote, Chart, News, Analysts, Financials TSX:PAY) announced it would acquired by NYSE-listed Fiserv for approximately $201.5-million. The move sent the company’s stock soaring.

“Our Board conducted a thorough strategic review process together with our financial advisors, having evaluated numerous acquisition, commercial partnership, and other opportunities, and concluded that the Transaction is in the best interests of the Company, its various stakeholders and its shareholders with certainty of value with an all-cash offer,” CEO Marco Margiotta said. “This Transaction represents tangible recognition of the value and strength of what Payfare has built as we embark on this exciting new chapter.”

In the brief time it was listed, Payfare did win some fans. In September of this year, Paradigm Capital analyst Daniel Rosenberg launched coverage of the stock with a “Buy” rating and a price target of $11.50.

“Payfare is a fintech company that is benefitting from the strong growth of the gig economy,” he wrote. “A pioneer of earned wage access (EWA), Payfare has built a best-in-class solution and works with some of the world’s largest gig platforms. The company plays a crucial role in improving worker retention and engagement for gig platforms. Payfare has grown its user base significantly since its IPO and is now benefitting form operating leverage with accelerating profitability and cash flow generation. We see opportunity for Payfare to capture market share internationally and expand into adjacent verticals. There is also potential to accelerate growth through M&A, given a fragmented industry. Investors should be well rewarded as Payfare executes on its next stage of growth.

Payfare follows Maxar Technologies, MediaValet and Magnet Forensics as Canadian techs sold to American tech or private equity firms of late.