How Investors May Respond To EVERTEC (EVTC) Acquiring 75% of Brazil’s Tecnobank for $144 Million

• EVERTEC, Inc. recently announced it has entered into a definitive agreement to acquire a 75% controlling stake in Tecnobank, a leading fintech company in Brazil’s digital vehicle financing contract registration sector, for approximately US$144 million, with the transaction expected to close in the fourth quarter of 2025 pending regulatory approval.
• This deal marks a substantial move for EVERTEC, signaling its deeper commitment to the Brazilian fintech space and further geographical diversification of its product offerings.
• We'll assess how EVERTEC's entrance into Brazil's digital vehicle finance ecosystem could reshape its investment outlook and growth strategy.

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EVERTEC Investment Narrative Recap

To believe in EVERTEC, you need confidence in its ability to capitalize on digital payments growth across Latin America, scale successful fintech integrations, and manage exposure to key customers and regional risks. The recent agreement to acquire a large stake in Tecnobank puts the spotlight squarely on currency risk in Brazil and the importance of successful expansion to offset revenue concentration in Puerto Rico; however, the outcome of this deal is unlikely to materially affect the short-term headwinds from ongoing renegotiations with Popular, Inc., which remain the most immediate catalyst and risk to monitor.

Of the recent announcements, EVERTEC’s July 30, 2025, move to boost its share buyback authorization by US$150 million stands out. This initiative, coming shortly after robust earnings and in parallel with expansion in Brazil, reflects management’s confidence in the company’s cash flow position and could support near-term EPS, even as new investments heighten both opportunity and execution risk. Yet, as impressive as these milestones are, investors should not ignore...

Read the full narrative on EVERTEC (it's free!)

EVERTEC's narrative projects $1.0 billion in revenue and $193.8 million in earnings by 2028. This requires 5.0% yearly revenue growth and a $55.9 million earnings increase from $137.9 million.

Uncover how EVERTEC's forecasts yield a $38.60 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have published two fair value estimates for EVERTEC ranging from US$33.04 to US$55.88 per share. While many highlight upside linked to Latin American digital payments tailwinds, the company's concentrated customer exposure and contract risks remain central to ongoing debates about performance potential.

Explore 2 other fair value estimates on EVERTEC - why the stock might be worth 10% less than the current price!

Build Your Own EVERTEC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your EVERTEC research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free EVERTEC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EVERTEC's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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