US merchant acquirer EVO Payments has secured a $150 million equity injection to help it navigate through the Coronavirus pandemic.
The investment came from funds associated with long-term partner Madison Dearborn, a private equity firm that has been a significant shareholder of the company since 2012.
The proceeds will be used the strengthen EVO's balance sheet, pay down debt and to fund potential future investment opportunities
In a statement, the firm says: "EVO is closely monitoring COVID-19 and its impact on the company’s business. While EVO’s global portfolio represents a diversified mix of merchants across Europe and North America, many of these merchants operate in markets that are subject to broad governmental restrictions on movement and commerce, resulting in substantial reductions in merchant transaction count and volumes."
In response, the company has moved to reduce fixed costs up to 20% for the remainder of fiscal 2020 and lower capital expenditures by up to 75% over the same period.
James G. Kelly, EVO’s chief executive officer, comments: “The long-term fundamentals of EVO’s business remain strong and, as the economy recovers, we believe these actions will support EVO’s continued growth through the execution of our strategic plan.”