Evertec gets 15-year tax break, to invest $200M in Puerto Rico
Evertec Group, LLC has received a 15-year tax grant from the Puerto Rico government under the Tax Incentive Act 73 of 2008, in exchange for several long-term commitments including a $200 million investment during the life of the benefit, company officials said.
“This grant is paramount to maintaining and expanding our current operations in Puerto Rico and further underscores our commitment to employing a large and sophisticated local workforce and investing in the local economy,” said Evertec President Peter Harrington.
“We’re pleased to receive this important tax grant and appreciate our continued partnership with the government of Puerto Rico as we continue to grow our leading transaction processing business in the Caribbean and Latin America,” said Harrington, who is also the company’s CEO.
Designed to promote economic development in Puerto Rico, the grant covers Evertec’s data processing activities in Puerto Rico. The company has vowed to maintain at least 700 employees in its data processing operations and invest at least $200 million on the island during the grant’s 15 year-term.
In exchange, Evertec will benefit from a reduced income tax rate of 4.0 percent on its data processing operations, as well as a 90 percent and 60 percent exemption on property and municipal taxes, respectively, as provided by the tax incentive act.
“Our partnership with Evertec assures its continued investment and growth in Puerto Rico while showing the commitment of our administration in supporting technology-based business models,” said Economic Development Secretary Jose Pérez-Riera, who also heads the Puerto Rico Industrial Development Company, which negotiated the agreement.
“Evertec is an important employer in Puerto Rico that has developed highly specialized jobs for our people,” he said. “This agreement underscores the advantages of investing in Puerto Rico as it serves businesses with unique incentives, a highly skilled workforce and a strong infrastructure.”
Apollo Management owns a 51 percent stake in the company that until July 2010 was fully owned by Popular Inc. The financial institution sold its former processing subsidiary for $900 million, retaining a 49 percent minority interest in the business.