Madison Dearborn-backed Evo Payments to price IPO later this month

Evo Payments looks as if it will go public later this month, after reigniting its IPO plans in April.

Evo on May 10 set terms for its pending offering. The Atlanta company is selling 14 million shares at $14 to $16 each. Evo is slated to price its IPO on May 22 and begin trading the next day, a source said. Evo will trade on the Nasdaq under the ticker symbol EVOP.

Evo is a payments processor and acquirer for merchants, independent sales organizations, financial institutions, government organizations and multinational corporations. The company processes 900 million transactions in North America and 1.7 billion in Europe annually, an SEC filing said. It services about 525,000 merchants in North America and Europe.

Evo Payments posted $504.7 million in revenue on $25.7 million in net losses for the year ended Dec. 31, an SEC filing said. Total debt stood at $744.3 million as of March 31.

Last year, Evo pursued both an IPO and sale but ended up pulling the dual process due to concerns from potential buyers about its client base, sources said. The buyers were wary of uncertainty regarding the future business agreement between Evo and Banco Popular, press reports said.

Evo in late 2013 formed a joint venture with Banco Popular where it acquired a controlling interest in Banco Popular’s merchant acquiring business in Spain. The deal also included a 10-year marketing alliance where the bank referred its merchant customers to the JV for merchant acquiring services, PaymentEye said. Banco Santander in June acquired the struggling Banco Popular for 1 euro after European authorities determined the lender was on the verge of insolvency, Fortune said.

Evo did file an S-1 with regulators for its IPO, Buyouts reported in June, but the filing wasn’t made public.

Madison Dearborn Partners stake in Evo dates back to 2013. The Chicago buyout shop committed to invest $250 million in Evo, the Wall Street Journal reported at the time. The investment came from MDP’s sixth fund, which collected $4.1 billion in 2010.

Madison Dearborn will own 91.7 percent of Evo’s class D stock after the IPO and 38.8 percent of combined voting power if underwriters exercise the green shoe, an S-1 filing said.

Madison Dearborn declined comment. Evo could not be reached for comment.

Action Item: For more information contact Evo CEO James Kelly at (516) 479-9000

Photo of man using mobile payments courtesy of ipopba/istock/Getty Images