Popular (BPOP) is Popular Thursday after EVERTEC IPO Filing

February 7, 2013 11:08 AM EST
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Popular, Inc. (NASDAQ: BPOP) is bucking the broader market weakness, rising 3.4 percent following the IPO filing for EVERTEC after the close.

EVERTEC is seeking to raise $100 million in an IPO.

Prior to Apollo Global Management buying a 51% stake on September 30, 2010, EVERTEC, LLC was 100% owned by Popular, Inc. Popular retained a 49% indirect ownership interest in EVERTEC.

Popular is still the company's largest customer, acting as one of the company's largest merchant referral partners and sponsors them with the card associations (such as Visa or MasterCard), enabling merchants to accept these card associations' credit card transactions. Popular also provides merchant sponsorship as one of the participants of the ATH network, enabling merchants to connect to the ATH network and accept ATH debit card transactions. EVERTEC provides a number of critical products and services to Popular, which are governed by a 15-year Amended and Restated Master Services Agreement that runs through 2025.

In 2011, products and services billed through Popular accounted for approximately 46% of total revenues, of which approximately 29% are derived from core bank processing and related services for Popular and approximately 17% are transaction processing activities driven by third parties.

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