Evertec Inc. announced Monday that on June 1, 2017 it received U.S. federal bank regulatory approval to buy EFT Group S.A., a Chilean-based company known commercially as PayGroup at a purchase price of some $40 million.
PayGroup is a payment processing and software company serving primarily financial institutions throughout Latin America.
The transaction is subject to customary closing conditions and is anticipated to close in the third quarter 2017. Evertec expects to fund the purchase using a combination of cash on hand and funds borrowed under the existing revolving line of credit, the company said.
“We are pleased to receive federal approval for our transaction. This acquisition aligns well with our strategy to invest in the Latin American market and provides us with a foundation to expand upon in the future,” said Mac Schuessler, Evertec’s President.
Evertec Inc. is a full-service transaction processing business in Latin America, providing a broad range of merchant acquiring, payment processing and business solutions services.
The company manages a system of electronic payment networks that process more than two billion transactions annually, and offers a comprehensive suite of services for core bank processing, cash processing and technology outsourcing.
In addition, Evertec owns and operates the ATH network. Based in Puerto Rico, the company operates in 18 Latin American countries and serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions.