Evertec to repurchase $70M of its common stock
Evertec Inc. announced it has entered an Accelerated Share Repurchase (ASR) agreement with Bank of America, N.A. by which it will repurchase $70 million of its common stock. The ASR is expected to be completed by the third quarter of 2024, the copany stated.
Additionally, Evertec’s Board of Directors approved an increase to the share repurchase authorization to an aggregate $220 million and an extension to the expiration date to Dec. 31, 2025. The ASR was executed under this increase.
Prior to this amendment, the share repurchase program had approximately $137 million remaining.
The company may repurchase shares in the open market, through accelerated share repurchase programs, 10b5-1 plans, or in privately negotiated transactions, subject to business opportunities and other factors.
During the last quarter of 2023, Evertec repurchased 344,715 shares of its common stock at an average price of $36.82 for a total of $12.5 million. For the full year 2023, Evertec repurchased 1.0 million shares of its common stock at an average price of $35.75 per share for a total of $36.1 million.
On Dec. 31, 2023, Evertec’s share repurchase program had approximately $137.5 million remaining and authorized for future use.
The announcement comes about a week after the San Juan-based company released its results for the fourth quarter and full year ended Dec. 31, in which it anticipated the transaction. The results showed a revenue increase of 20% to $194.6 million during the last quarter of 2023, compared with $161.8 million in the prior year.
“The increase in revenues primarily reflects growth in our Latin America business as it benefited from the Sinqia acquisition we closed during the fourth quarter as well as from strong organic growth and the paySmart acquisition completed in the first quarter. We also benefited from strong POS transaction volumes that positively impacted our Payments Puerto Rico and Caribbean segment,” the company stated.
Evertec also reported 12% growth to $694.7 million for the full year, compared with $618.4 million in the prior year, reflecting growth across Latin American payments and solutions, payment services in Puerto Rico and the Caribbean, and the merchant acquiring segments.
“We’re pleased to deliver another year of strong results as we continue to execute in our core markets and benefit from strong organic growth. As we look to 2024, we will continue to focus on delivering great solutions to our clients that will drive growth and on integrating our most recent acquisitions as we become the true provider of Latin America Payments and Solutions,” said Evertec CEO Mac Schuessler when the results were released Feb. 28.
