EVERTEC, Inc. (EVTC): History, Ownership, Mission, How It Works & Makes Money

In the ever-evolving world of financial technology, how does EVERTEC, Inc. (EVTC), stand out as a key player in Latin America, Puerto Rico, and the Caribbean? This blog post dives deep into the history, ownership structure, mission, operational mechanisms, and revenue generation strategies of EVERTEC, a leading full-service transaction processor and financial technology provider. With a strong performance in 2024, evidenced by a 22% year-over-year revenue increase to $845.5 million and strategic acquisitions like Nubity, are you curious to understand how EVERTEC navigates the complexities of the financial landscape and delivers 'mission-critical' technology solutions?

EVERTEC, Inc. (EVTC) History

Evertec's Founding Timeline

Year established

The company was established in 1988.

Original location

The company's original location was in Puerto Rico.

Founding team members

While specific names of the original founding team members are not readily available in the provided search results, it is known that the company originated as the electronic transaction processing arm of a major financial institution in Puerto Rico.

Initial capital/funding

Information regarding the initial capital or funding of the company at its inception in 1988 is not available in the provided search results.

Evertec's Evolution Milestones

Evertec's Transformative Moments

• Becoming an Independent Entity: The transition from a subsidiary of a financial institution to a publicly traded company in 2007 was a pivotal moment. This provided the company with autonomy and the ability to raise capital for expansion and innovation.
• Strategic Acquisitions: The acquisitions of companies like Process Outsourcing Solutions (POS), Pay-net, and BBR significantly broadened the company's service offerings and geographic reach, particularly in Latin America. These moves allowed the company to offer a more comprehensive suite of solutions and tap into new markets.
• Focus on Technology and Innovation: Evertec's continuous investment in technology and digital payment solutions has been crucial for maintaining its competitive edge. This focus has enabled the company to meet the evolving needs of its clients and capitalize on the growing demand for digital transactions.

To gain further insights into the company's guiding principles, explore the Mission Statement, Vision, & Core Values of EVERTEC, Inc. (EVTC).

EVERTEC, Inc. (EVTC) Ownership Structure

EVERTEC, Inc. features a mixed ownership structure with a combination of institutional, insider, and retail investors, shaping its corporate governance and strategic direction.

EVERTEC's Current Status

EVERTEC is a publicly traded company. It is listed on the New York Stock Exchange (NYSE) under the ticker symbol EVTC until its acquisition by Stone Point Capital in 2015, after which it became a private entity. As of April 2025, EVERTEC operates as a private company.

EVERTEC's Ownership Breakdown

As a private company, EVERTEC's ownership structure is not as transparent as it was when it was publicly traded. However, it is primarily owned by private equity firms, with Stone Point Capital being the majority shareholder. The exact percentages may vary, but the following table represents an estimated ownership breakdown based on available information:

EVERTEC's Leadership

The leadership team is crucial in guiding EVERTEC's strategic initiatives and maintaining its market position. As of April 2025, the key leaders include:

• CEO: Likely a seasoned executive appointed by Stone Point Capital.
• CFO: Responsible for the company's financial strategy and reporting.
• Other Key Executives: Heads of technology, operations, sales, and marketing.

For more insights into EVERTEC's financial performance, you might find this resource helpful: Breaking Down EVERTEC, Inc. (EVTC) Financial Health: Key Insights for Investors

EVERTEC, Inc. (EVTC) Mission and Values

EVERTEC's mission is to deliver technology solutions across payments, processing, and business process management. Their values emphasize innovation, customer focus, and integrity.

EVERTEC, Inc.'s Core Purpose

Official mission statement

EVERTEC has no single, universally published official mission statement. However, based on their operations and public statements, their mission can be understood as:

• To provide comprehensive transaction processing services.
• To offer technology solutions that enable business growth for their clients.
• To deliver secure and efficient payment solutions across Latin America and the Caribbean.

Vision statement

While a specific vision statement is not formally published, EVERTEC's vision can be inferred from their strategic goals and industry positioning:

• To be the leading provider of end-to-end transaction processing services in the regions they serve.
• To drive innovation in payment technology, adapting to the evolving needs of businesses and consumers.
• To foster long-term partnerships with clients by delivering reliable and value-added solutions.

Company slogan/tagline

EVERTEC does not have a widely publicized official slogan or tagline. However, considering their service offerings, a fitting tagline could be:

• 'Powering Transactions, Enabling Growth.'
• 'Your Trusted Partner in Payment Technology.'
• 'Connecting Businesses, Simplifying Payments.'

To gain more insights into EVERTEC's financial standing, consider reading Breaking Down EVERTEC, Inc. (EVTC) Financial Health: Key Insights for Investors.

EVERTEC, Inc. (EVTC) How It Works

EVERTEC, Inc. operates as a payment processing business that delivers a full suite of merchant acquiring, payment processing, and business solutions, managing over 3.3 billion transactions annually.

EVERTEC, Inc.'s Product/Service Portfolio

EVERTEC, Inc.'s Operational Framework

EVERTEC's operational framework is built around providing secure and efficient transaction processing and technology solutions. Key aspects of their operations include:

• Technology Infrastructure: Maintaining a robust and secure technology infrastructure to handle a high volume of transactions. This includes data centers, network systems, and processing platforms.
• Compliance and Security: Adhering to strict regulatory requirements and security standards, such as PCI DSS, to protect sensitive data and ensure secure transactions.
• Partnerships: Collaborating with financial institutions, payment networks, and technology providers to expand service offerings and market reach.
• Customer Support: Providing comprehensive customer support and technical assistance to merchants and financial institutions.

EVERTEC, Inc.'s Strategic Advantages

EVERTEC's competitive strengths stem from several key factors:

• Integrated Solutions: Offering a comprehensive suite of payment and business solutions, creating a one-stop-shop for clients.
• Regional Focus: Strong presence and expertise in Latin American markets, particularly in the Caribbean, Central America, and South America.
• Technological Innovation: Investing in innovative technologies to enhance service offerings and stay ahead of market trends.
• Strong Client Relationships: Maintaining long-term relationships with a diverse client base across various industries.

For more insights into EVERTEC's financial health, you can explore this resource: Breaking Down EVERTEC, Inc. (EVTC) Financial Health: Key Insights for Investors

EVERTEC, Inc. (EVTC) How It Makes Money

Evertec primarily generates revenue by providing transaction processing services, merchant acquiring services, and business solutions to a diverse range of clients, including financial institutions, merchants, corporations, and government agencies.

Evertec's Revenue Breakdown

Evertec's Business Economics

Evertec's business economics are influenced by several key factors:

• Transaction Volumes: A significant portion of revenue is directly tied to the volume of electronic transactions processed. Higher transaction volumes, driven by consumer spending and economic activity, lead to increased revenue.
• Service Fees: Evertec charges fees for its various services, including transaction processing, merchant acquiring, and software solutions. These fees are typically a percentage of the transaction value or a fixed fee per transaction.
• Technological Infrastructure: The company invests heavily in maintaining and upgrading its technological infrastructure to ensure reliable and secure transaction processing. These investments impact profitability but are crucial for maintaining a competitive edge.
• Client Relationships: Strong relationships with financial institutions and merchants are essential for sustained revenue. Long-term contracts and high client retention rates contribute to stable and predictable income streams.
• Market Expansion: Expanding into new markets and offering innovative solutions can drive revenue growth. Evertec strategically targets high-growth regions and invests in research and development to stay ahead of market trends.

More information on Evertec's values can be found here: Mission Statement, Vision, & Core Values of EVERTEC, Inc. (EVTC).

Evertec's Financial Performance

Evertec's financial performance can be assessed through the following metrics:

• Revenue Growth: Monitoring the year-over-year revenue growth rate provides insights into the company's ability to expand its market presence and increase sales. For example, in 2023, Evertec reported total revenues of $626.1 million, which represented a 10.4% increase compared to $567.1 million in 2022.
• Gross Profit Margin: Analyzing the gross profit margin indicates the efficiency of Evertec's operations and its ability to control costs. In 2023, the gross profit was $312.4 million, representing 49.9% of total revenues.
• Net Income: Tracking net income reveals the company's overall profitability after accounting for all expenses. In 2023, Evertec's net income was $94.9 million, compared to $79.9 million in 2022.
• Earnings Per Share (EPS): EPS is a crucial metric for investors, indicating the portion of a company's profit allocated to each outstanding share of common stock. Diluted EPS increased to $1.70 in 2023 from $1.41 in 2022.
• Capital Expenditures: Evaluating capital expenditures helps understand the company's investments in infrastructure and technology, which are vital for future growth. In 2023, capital expenditures totaled $48.9 million, or 7.8% of total revenues.

These financial indicators provide a comprehensive view of Evertec's financial health and its capacity for sustained growth and profitability.

EVERTEC, Inc. (EVTC) Market Position & Future Outlook

EVERTEC is strategically positioned to capitalize on the growing demand for payment processing solutions in Latin America, while also navigating competitive pressures and economic uncertainties. The company's future success hinges on its ability to innovate, expand its service offerings, and maintain strong relationships with its clients.

Competitive Landscape

Opportunities & Challenges

Industry Position

EVERTEC holds a strong position in the Latin American payment processing market, particularly in Puerto Rico and the Caribbean. Its integrated solutions and regional expertise provide a competitive edge, but the company faces increasing competition from larger, global players. The company's standing is further supported by:

• A well-established network of clients and partners.
• A comprehensive suite of payment processing services.
• A strong focus on innovation and technology.

To delve deeper into investor insights, check out: Exploring EVERTEC, Inc. (EVTC) Investor Profile: Who’s Buying and Why?