finance news

EVO receives $150Mn investment from MDP for COVID-19 initiatives

EVO receives $150Mn investment from MDP for COVID-19 initiatives
EVO receives $150Mn investment from MDP for COVID-19 initiatives

Payment technology and services provider EVO Payments Inc. has reportedly received an investment of $150 million from Madison Dearborn Partners, LLC-affiliated funds. The private equity firm has been a shareholder in EVO since 2012. These additional funds will bolster EVO’s financial profile and allow the company to focus closely on strategic maneuvers to help it navigate the global coronavirus pandemic.

EVO CEO, James G. Kelly has apparently stated that the company has deployed decisive measures to position itself such that it can offer consistent service to valued customers throughout the pandemic. He added that EVO’s long term fundamentals are robust and will support the company’s continued growth throughout the execution of the strategic plan, whilst the economy recovers.

Part of the investment proceeds will be utilized for the repayment of EVO’s revolver borrowings. This will further reduce the company’s pro forma leverage ratio, as of December 2019, to net debt of 3.3x to Adjusted EBITDA. The rest of the proceeds will be used for funding potential investment prospects in the future.

EVO’s global portfolio includes a diverse mix of businesses across North America and Europe, with many of these operating in markets facing government restrictions on commerce and movement, which has led to a sizeable decrease in volumes and counts of merchant transactions. EVO is addressing these declines by taking the steps necessary to align cash flows and cost structures with the anticipated near-term revenue declines caused by the coronavirus pandemic. These steps include a series of initiatives to lower capital expenditures and fixed costs for the remainder of the fiscal year 2020.

EVO Board of Directors Chairman, Ray Sidhom has also commented on the funding, acknowledging the company’s long business relationship with MDP and expressing gratitude towards its strong commitment to EVO’s future.

MDP Financial & Transaction Services team MD and EVO Board of Directors member, Vahe Dombalagian has also expressed his appreciation towards EVO’s growth strategy and anticipation towards enhancing the partnership with the EVO leadership team, to continue expanding its global footprint and advancing its growth.

Source Credit: https://apnews.com/Globe%20Newswire/7f6a6cae034dea14e0a7e22b912d27fa

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Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.