Business
Popular Completes Acquisition of Key Customer Channels and Enters into Amended Commercial Contracts with Evertec
SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (“Popular” or the “Corporation”) (NASDAQ: BPOP) announced today that its wholly owned subsidiary,
About this update from Popular, Inc.
[{"type":"text","content":" SAN JUAN, Puerto Rico--(BUSINESS WIRE)--\nPopular, Inc. (“Popular” or the “Corporation”) (NASDAQ: BPOP) announced today that its wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”), has completed its previously announced acquisition of certain assets and assumption of certain liabilities used by Evertec Group, LLC (“Evertec Group”), a wholly owned subsidiary of Evertec, Inc. (“Evertec”) (NYSE: EVTC), to service certain BPPR channels.\n\nAs a result of the closing of the transaction, BPPR acquired from Evertec Group certain critical channels, including BPPR’s retail and business digital banking and commercial cash management applications. BPPR also entered into amended and restated service agreements with Evertec Group pursuant to which Evertec Group will continue to provide various information technology and transaction processing services to Popular, BPPR and their respective subsidiaries.\n\nUnder the amended service agreements, Popular will have greater optionality to develop and enhance technology platforms and more flexibility to select service vendors, as Evertec Group will no longer have exclusive rights to provide certain of Popular’s technology services. This is expected to improve Popular’s ability to meet its customer needs in a timely manner. In addition, the amended service agreements are projected to reduce service costs as a result of discounted pricing and lowered caps on contractual pricing escalators tied to the Consumer Price Index. As part of the transaction, BPPR also strengthened its relationship with Evertec in the payments business, including through the incorporation of a revenue sharing structure for BPPR in connection with its merchant acquiring relationship with Evertec.\n\nIn connection with the transaction, Popular welcomed approximately 165 employees and contractors from Evertec that support the servicing of the acquired assets, strengthening and deepening Popular’s in-house technology bench.\n\n“This transaction allows Popular to accelerate its ongoing digital transformation and continue improving our clients’ experience. With the ability to manage our key customer channels and greater flexibility to choose the best technology partners, we will be able to more quickly enhance the services that we offer through our digital platforms, as well as the sales and account maintenance processe...