Puerto Rican financial technology solutions and back-office service provider Evertec has acquired its Chilean rival Paygroup for US$40 million, providing access to numerous clients in Latin American financial services.
Paygroup offers transactional services and technology solutions to organizations in the financial and retail sectors in Brazil, Argentina, Venezuela, Colombia, Uruguay, and Peru.
“This acquisition will expand our activity to countries where we are not present, besides helping us strengthen our presence in the region,” said Evertec CEO Morgan Schuessler.
Reports say that Paygroup controls more than 50% of the market share in Chile, as well as running operations in Central America.
The acquisition will also ease Evertec’s task of cross selling fraud prevention products, which are widely sought after in the region due to numerous cyber attacks.
Paygroup is one of the early success stories in the Chilean fintech market. Founded in 1996, the company first provided banking solutions and payment processing services to a handful of firms in Chile.
In 2011, it grew into a regional force, after VC fund Mater Activa purchased a controlling stake. Two years later, the fund managers merged it with Uruguay’s Paytrue.
Today, Paygroup offers back-office services in finance and accounting, in addition to numerous other business management services.
“This acquisition aligns well with our strategy to invest in the Latin American market and provides us with a foundation to expand upon in the future,” Mac Schuessler added.
In Puerto Rico, Evertec is known for its e-payment platform that processes more than 2.1 billion transactions annually.