EVO Payments, Inc., a leading global provider of payment technology integrations and acquiring solutions, announced that it has entered into a long-term strategic marketing alliance with the National Bank of Greece to provide merchant acquiring and payment processing services.
“We are equally pleased to form this alliance and leverage EVO’s proven payments expertise as we enhance our merchant acquiring products and services and increase the value of the business.”
Under the terms of the agreements, EVO and NBG will form a merchant acquiring joint venture. The Bank will spin off its merchant acquiring business into a new entity, and EVO will acquire a 51% interest in the new entity. This transaction includes a marketing alliance whereby NBG will exclusively refer customers to the joint venture, and EVO will manage the joint venture and provide its market leading card acceptance solutions through its proprietary products and processing platforms. EVO has agreed to pay €158 million, or approximately $180 million, for its ownership interest in the joint venture.
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Founded in 1841, NBG is the largest bank in Greece by total assets, supporting over 5 million active customers and nearly 360 retail branches throughout the country. NBG is the largest card issuer with 33% market share and is the second largest merchant acquirer in Greece with 22% market share and approximately 165,000 merchants generating over $11 billion in annual volume.
Today, Greece has a population of approximately 11 million people. Greece’s card penetration is currently 28%, and domestic payment volumes have been growing 20% since 2016 and now total over $40 billion. This transaction expands EVO’s presence in Europe and positions EVO to capitalize on these strong digital payments and card adoption trends as it leverages its suite of multi-channel products and services to expand market share.
“We are very excited to expand our international footprint into Greece by forming a long-term marketing alliance with NBG,” stated James G. Kelly, CEO, EVO. “NBG will be a trusted partner as we bring our proprietary solutions to the market and increase card acceptance. The Bank’s market leading brand recognition and significant customer base will enable us to grow the merchant portfolio as we work together to deliver strong revenue growth.”
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“The establishment of our relationship with EVO is a great step forward for the National Bank of Greece as it seeks to capitalize on the attractive payments opportunity in the market,” stated Paul Mylonas, CEO, NBG. “We are equally pleased to form this alliance and leverage EVO’s proven payments expertise as we enhance our merchant acquiring products and services and increase the value of the business.”
The transaction is expected to close in 2022, subject to customary regulatory approvals and closing conditions. The joint venture’s financial performance is expected to be accretive to the mid-teen revenue growth rate of EVO’s Europe segment.
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