Evertec's Tecnobank Acquisition Bolsters Brazil Expansion: Buy Rating Maintained by William Blair Analyst

Evertec's acquisition of Tecnobank aligns with its strategy to diversify operations beyond Puerto Rico and tap into the growing Brazilian market. The acquisition is expected to unlock cross-selling opportunities and capitalize on the digital transformation in the auto financing market. Analyst Christopher Kennedy maintains a Buy rating due to the strategic move and promising market conditions.

Evertec, Inc. (NYSE: EVTC), a leading full-service transaction processor and financial technology provider, has announced the acquisition of a 75% stake in Tecnobank, a fintech leader in Brazil’s digital vehicle financing contract registration sector. The transaction, valued at approximately USD $144 million, is expected to be financed through Evertec’s existing liquidity and will be subject to regulatory approval from Brazil’s Administrative Council for Economic Defense (CADE).

The acquisition aligns with Evertec's strategic growth plan to diversify its operations beyond Puerto Rico and tap into the growing Brazilian market. Tecnobank's expertise in digital vehicle financing contract registration positions it as a strong addition to Evertec's portfolio, particularly given the increasing digital transformation in the auto financing market.

Analyst Christopher Kennedy maintains a Buy rating for Evertec, citing the strategic move and promising market conditions in Brazil. The acquisition is expected to unlock cross-selling opportunities and enhance Evertec’s capabilities in Latin America.

Evertec, Inc. operates in 26 Latin American countries and serves a diversified customer base of leading financial institutions, merchants, corporations, and government agencies. The company manages a system of electronic payment networks and offers a comprehensive suite of services for core banking, cash processing, and fulfillment, processing over ten billion transactions annually.

The acquisition is expected to close in the fourth quarter of 2025, pending regulatory approval.

References:

[1] https://seekingalpha.com/news/4487890-evertec-to-acquire-75-stake-in-brazils-tecnobank-for-144m
[2] https://www.businesswire.com/news/home/20250821727786/en/Evertec-to-Acquire-Controlling-Stake-in-Tecnobank-a-Fintech-Company-in-Brazil