December 16, 2021 10:00 AM GMT
ATLANTA–(BUSINESS WIRE)– EVO Payments, Inc. (NASDAQ: EVOP) (“EVO” or “the Company”), a leading global provider of payment technology integrations and acquiring solutions, announced today that it has entered into a long-term strategic marketing alliance with the National Bank of Greece (“NBG” or “the Bank”) to provide merchant acquiring and payment processing services.
Under the terms of the agreements, EVO and NBG will form a merchant acquiring joint venture. The Bank will spin off its merchant acquiring business into a new entity, and EVO will acquire a 51% interest in the new entity. This transaction includes a marketing alliance whereby NBG will exclusively refer customers to the joint venture, and EVO will manage the joint venture and provide its market leading card acceptance solutions through its proprietary products and processing platforms. EVO has agreed to pay €158 million, or approximately $180 million, for its ownership interest in the joint venture.
Founded in 1841, NBG is the largest bank in Greece by total assets, supporting over 5 million active customers and nearly 360 retail branches throughout the country. NBG is the largest card issuer with 33% market share and is the second largest merchant acquirer in Greece with 22% market share and approximately 165,000 merchants generating over $11 billion in annual volume.
Today, Greece has a population of approximately 11 million people. Greece’s card penetration is currently 28%, and domestic payment volumes have been growing 20% since 2016 and now total over $40 billion. This transaction expands EVO’s presence in Europe and positions EVO to capitalize on these strong digital payments and card adoption trends as it leverages its suite of multi-channel products and services to expand market share.
“We are very excited to expand our international footprint into Greece by forming a long-term marketing alliance with NBG,” stated James G. Kelly, CEO, EVO. “NBG will be a trusted partner as we bring our proprietary solutions to the market and increase card acceptance. The Bank’s market leading brand recognition and significant customer base will enable us to grow the merchant portfolio as we work together to deliver strong revenue growth.”
“The establishment of our relationship with EVO is a great step forward for the National Bank of Greece as it seeks to capitalize on the attractive payments opportunity in the market,” stated Paul Mylonas, CEO, NBG. “We are equally pleased to form this alliance and leverage EVO’s proven payments expertise as we enhance our merchant acquiring products and services and increase the value of the business.”
The transaction is expected to close in 2022, subject to customary regulatory approvals and closing conditions. The joint venture’s financial performance is expected to be accretive to the mid-teen revenue growth rate of EVO’s Europe segment.
J.P. Morgan Securities LLC served as a financial advisor to the Company.
Conference Call and Webcast
EVO’s executive management team will host a conference call and online webcast at 8:00 a.m. Eastern Time on Friday, December 17, 2021 to discuss the transaction. The conference call may be accessed by dialing (888) 550-5460 (U.S. and Canada) or (646) 960-0831 (international) and referring to conference ID number 7602681. A live webcast of the conference call and associated presentation materials will be available on the “Investors” section of the Company’s website at www.evopayments.com. A replay of the webcast will be archived on the Company’s investor relations website following the call.
Forward Looking Statements
This release contains statements about future events and expectations that constitute forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are often identified by words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecast,” “outlook,” “target,” “should,” “could,” “would,” “will” and comparable words. These forward-looking statements involve certain risks and uncertainties and other factors that could cause actual results to differ materially from those indicated in such forward-looking statements, including, but not limited to: uncertainties as to the timing of the consummation of the proposed transaction and the ability of the parties to consummate the proposed transaction; the ability of EVO to implement its plans and other expectations with respect to the joint venture; and the other risks, uncertainties and important factors contained and identified (including under the heading “Risk Factors”) in EVO’s filings with the Securities and Exchange Commission, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof and, except for EVO’s ongoing obligations under applicable securities laws, EVO undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
About EVO Payments, Inc.
EVO Payments, Inc. (NASDAQ: EVOP) is a leading payment technology and services provider. EVO offers an array of innovative, reliable, and secure payment solutions to merchants ranging from small and mid-size enterprises to multinational companies and organizations across the globe. As a fully integrated merchant acquirer and payment processor in over 50 markets and 150 currencies worldwide, EVO provides competitive solutions that promote business growth, increase customer loyalty, and enhance data security in the international markets it serves.
About the National Bank of Greece
National Bank of Greece S.A. is one of the four systemic banks in Greece and one of the largest financial institutions in Greece, providing a wide range of financial products and services. It has a strong presence throughout the country with leading market shares in most of its main business areas, including retail and corporate lending.
Contacts:
EVO Payments, Inc.
Sarah Jane Schneider
Investor Relations & Corporate Communications Manager
+1 770-709-7365
investor.relations@evopayments.com
Source: EVO Payments, Inc.
