EVO Payments (NASDAQ: EVOP)
Leading payment service provider EVO Payment has laid out the terms for its initial public offering slated for May 22, 2018. The payment solutions provider, which carries out its operations throughout Europe and North America, filed for an IPO with the U.S. Securities and Exchange Commission last month. EVO wants to trade under the “EVOP” ticker symbol on the NASDAQ Global Select Market.
The proposed IPO will offer 14 million shares of Class A common stock at a price of between $14 and $16. At the midpoint of the price range, EVO Payments could command a market value of $1.2 billion.
SunTrust Robinson Humphrey, JPMorgan, Citigroup, BofA Merrill Lynch and Deutsche Bank Securities are the lead book-running managers for the offering. JP Morgan, Citigroup, Cowen and Col, Deutsche Bank, Bank of America Merrill Lynch, SunTrust Robinson Humphrey, Goldman Sachs, PKO BP Securities, William Blair, Regions Securities and Barclays are acting as the underwriters on the deal.
In its IPO filing with SEC, the company described itself as follows: “We are a global merchant acquirer and payment processor servicing approximately 525,000 merchants in North America and Europe and processing more than 900 million transactions in North America and 1.7 billion transactions in Europe annually.
We operate at the center of global electronic commerce with local operations in 10 countries, with the ability to serve 50 markets around the world through our three proprietaries, in-market processing platforms that are connected by a single point of integration.”
EVO Payments engages in the provision of merchant processing and acquiring solutions to independent sales organizations, merchants, multinational corporations, independent software vendors, financial institutions, and government organizations throughout Europe and North America. It also partners with Mastercard, Inc. and Visa, Inc.
The company also recently partnered with a leading Czech Republic bank known as MONETA Money Bank. The partnership is aimed at providing payment acceptance services to the merchant customers of MONETA.
EVO already has businesses in the Czech Republic and will avail the merchants of MONETA with a comprehensive suite of secure processing solutions, innovations in advanced technologies and digital transactions to support the bank’s strategic growth objectives in commercial banking.
EVO Payments posted $523 million in sales in the last twelve months for the year ended March 31, 2018. The company is under the leadership of James Kelly, who came in six years ago after leaving his CEO role at Global Payment Inc.
EVO is among the top four international merchant acquirers that provide a range of services to manage, onboard, and underwrite the transaction presentment process. The company has referral relationships with 11 leading financial institutions representing over 10,000 branch locations worldwide.
Investors with 5% or greater stake in the company include Madison Dearborn Partners and Blueapple. EVO Payments had a loss of $41.4 million and raised $523.4 million in revenue in the last year. Major competitive companies that offer similar services as EVO include First Data, Vantiv, Global Payments, Elavon, First Data, and TSYS. The company was founded in 1989.