Montreal-based fintech Nuvei said it has formed a special committee to evaluate buyout proposals and other strategic alternatives, confirming that it’s been in talks about a potential transaction. The announcement follows a Wall Street Journal report that Boston-based private-equity firm Advent International is nearing a deal to take the company private. Here’s what you need to know:

The possible deal: One day after the Journal’s report, Nuvei issued a release confirming it is “engaged in discussions with certain third parties in connection with a potential transaction.” Founder and CEO Phil Fayer and others would continue to hold a “significant” amount of its multiple voting shares following such a transaction, the company said in the release. Nuvei head of communications Alex Hammond and Advent spokesperson Anna Epstein both declined to comment.

Stock struggles: Nuvei, which is backed by Canadian celebrity Ryan Reynolds, has lost more than three-quarters of its value since September 2021, when its shares traded at a high of $171.78 apiece. The payment-processing company was the target of two short-seller reports by Spruce Point Capital, which alleged Nuvei has covered up past business failures, a lack of growth and relationships with people facing allegations of fraud. Nuvei contested the claims and Spruce Point closed its position in Nuvei in June.

The context: Nuvei joins several other public Canadian tech companies that have turned to private acquirers following struggles in public markets. Other examples include Toronto-based fintech Q4, Vancouver-based BBTV, Winnipeg-based agtech Farmers Edge and most recently, Longueuil, Que.-based procurement and commerce software firm MDF Commerce. As my colleague Aleksandra reported, experts expect this trend to continue as long as high interest rates, lower valuations and other economic headwinds persist.

What’s next: Nuvei hasn’t finalized any deals and hasn’t decided whether to pursue a transaction or continue with the status quo, the company said in the release. Regardless, investors appear to like the news—Nuvei’s shares closed up nearly 32 per cent Monday.