EVO Payments has acquired the remaining stake in Federated Payment Systems, an existing minority owned subsidiary, and its Canadian affiliate.
In 1999, EVO Payments was an initial investor in Federated Payments Systems, which offers direct merchant acquiring services across the US and Canada with headquarters in Melville, New York.
EVO Payments North America president Brendan Tansill said: “The acquisition aligns well with EVO’s direct US merchant sales strategy and provides an opportunity to accelerate growth in this line of business. Additionally, the acquisition expands cross-sell opportunities within the Federated merchant base as we work closely with our technology ISV partners.
“We see Federated’s business model as complementary to our existing direct sales efforts as the company already relies on our infrastructure and follows our business practices, allowing EVO to seamlessly integrate the business into our organization.”
EVO expects the stake acquisition to generate between $13m and $15m in additional revenues next year.
Over the last 20 years, EVO Payments has funded several startup sales organizations including Federated. It is the eighth subsidiary buyouts completed by EVO in the last five years.
Founded in 1989, EVO Payments is a payment technology and services provider. It provides an array of reliable and secure payment solutions to merchants that range from small and mid-size enterprises to multinational companies and organizations across North America and Europe.
It is a fully integrated merchant acquirer and payment processes in more than 50 markets, covering 150 currencies worldwide. The company’s solutions promote business growth, increase customer loyalty and enhance data security in the markets it serves.
On 30 June this year, the company announced its second quarter results. For the quarter, its revenue increased 14% to $140.9m, compared to $123.9m in the prior year.
The net income attributable to the company was $16.7m or $0.96 per diluted share.
The adjusted earnings before interest, taxes, depreciation, amortization (EBITDA) for the period increased 12% o $37m for the period, compared to $33m for the same period, last year.