Evertec set to acquire Brazil’s Sinqia in market expansion move
Evertec Inc. (NYSE: EVTC), a leader in transaction processing in Puerto Rico, the Caribbean, and Latin America, has agreed to acquire Sinqia, a provider of technology for financial institutions in Brazil.
The transaction involves a value of R$27.19 per share and includes a daily ticking fee of up to R$1.00 per share, depending on the closing date. This acquisition expands Evertec’s market presence and diversifies its business portfolio, particularly in high-growth regions.
Mac Schuessler, President and Chief Executive Officer of Evertec, said, “Sinqia is a leader in providing software to the financial services industry in Brazil with an impressive history of delivering organic and inorganic growth. This is a highly complementary transaction, and together we plan to bring Evertec payments solutions to Brazil and Sinqia’s strategies to our Latin American markets.”
Under the merger agreement, Evertec will acquire Sinqia’s outstanding equity at R$27.19 per share, plus a daily cash ticking fee up to R$1.00 per share based on the daily SELIC rate published by the Central Bank of Brazil. Sinqia’s equity valuation stands at R$2,326 million (USD$485 million) and its enterprise value at R$2,835 million (USD$591 million). This acquisition represents a premium of approximately 24.0% to the unaffected share price and a 22.6% premium to the prior 30-day volume weighted average price.
Evertec plans to finance the acquisition using cash on hand and committed financing of $600 million. The transaction, which has been unanimously approved by the boards of directors of both Evertec and Sinqia, is slated to be completed during the fourth quarter of 2023, subject to customary closing conditions and approvals. The transaction is also contingent on the approval of Sinqia’s stockholders.
Bernardo Gomes, Chief Executive Officer of Sinqia, stated, “We are excited about the opportunity to join the Evertec family. Our strategy, operating philosophy along with our results-driven culture will align well with Evertec and ensure a smooth integration. Combining our companies will enhance services for both of our growing customer bases as well as provide opportunities for our team members as Evertec continues to expand in attractive markets with strong macro tailwinds.”