Evertec Inc. (Puerto Rico)

The Company is a leading full-service transaction-processing business in Puerto Rico, the Caribbean, and Latin America, providing a broad range of merchant acquiring, payment services, and business process management services. The Company was incorporated on April 13, 2012. The Company was converted from a Puerto Rico corporation to a Puerto Rico limited liability company (the “Conversion”) to improve its consolidated tax efficiency by taking advantage of recent changes to the Puerto Rico Internal Revenue Code, as amended (the “PR Code”), that permit limited liability companies to be treated as partnerships that are pass-through entities for Puerto Rico tax purposes on April 17, 2012. 2013 The Company's common stock began trading on the NYSE under the symbol “EVTC” following our initial public offering on April 17, 2013. The Company believes that it is one of the largest merchant acquirers in Latin America based on the total number of transactions and the largest merchant acquirer in the Caribbean. The Company serves 26 countries out of 11 offices, including its headquarters in Puerto Rico. The Company owns and operates the ATH network, which the Company believes is one of the leading personal identification number (“PIN”) debit networks in Latin America. The Company manages a system of electronic payment networks and offers a comprehensive suite of services for core banking, cash processing, and fulfillment in Puerto Rico, that process over three billion transactions annually. Additionally, the Company offers technology outsourcing in all the regions the Company serves. The Company serves a diversified customer base of leading financial institutions, merchants, corporations, and government agencies with “mission-critical” technology solutions that enable them to issue, process, and accept transactions securely. The Company believes its business is well-positioned to continue to expand across the fast-growing Latin American region. The Company is differentiated, in part, by its diversified business model, which enables the Company to provide its varied customer base with a broad range of transaction-processing services from a single source across numerous channels and geographic markets. The Company believes this capability provides several competitive advantages that will enable the Company to continue penetrating its existing customer base with complementary new services, win new customers, develop new sales channels, and enter new markets. The Company sells and distributes its services primarily through a proprietary direct sales force with established customer relationships. The Company continues to pursue joint ventures and merchant-acquiring alliances. The Company benefits from an attractive business model, the hallmarks of which are recurring revenue, scalability, significant operating margins, and moderate capital expenditure requirements. The company's revenue is predominantly recurring because of the mission-critical and embedded nature of the services the Company provides. In addition, the Company generally negotiates multi-year contracts with its customers. The Company believes its business model should enable the Company to continue to grow its business organically in the primary markets the Company serves without significant incremental capital expenditures.