Payment technology and service provider EVO Payments has secured a $150m investment to help it continue with strategic initiatives during the coronavirus pandemic.
The funds were supplied by private equity firm Madison Dearborn Partners, which has been an investor in EVO since 2012.
This fresh equity injection was completed to bolster EVO’s financial profile and ensure it can continue with its planned initiatives. Part of the capital is being set aside to pay down EVO’s revolver borrowings, lowering its pro forma leverage ratio.
Any funds leftover will be used to fund potential future investment opportunities.
EVO CO James Kelly said, “We have taken decisive measures to ensure our business is best positioned to continue to serve our valued customers throughout this global pandemic. The long-term fundamentals of EVO’s business remain strong and, as the economy recovers, we believe these actions will support EVO’s continued growth through the execution of our strategic plan.”
The payments company has been assessing the impact of the coronavirus, it said. The majority of its portfolio consists of a diversified mix of merchants across Europe and North America. Many of these operate in markets subject to broad governmental restrictions on movement and commerce, impacting merchant transaction, EVO stated.
As a result of this, the FinTech has aligned cost structure and cash flows to match the decline in revenues caused by the pandemic. These measures include to reduce fixed costs up to 20% for the remainder of fiscal 2020.
EVO Payments is a payment technology developer which provides merchants around the world with processing technology. The technology supports businesses in more than 50 markets and in 150 currencies.
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