EVERTEC Inc. has secured U.S. federal bank regulatory approval for the acquisition of EFT Group SA for about 26.92 billion Chilean pesos, or approximately $40 million at current exchange rates.

Chile-based EFT Group is known commercially as PayGroup, a payment processing and software company that operates throughout Latin America.

EVERTEC expects to fund the acquisition using cash on hand and funds borrowed under the existing revolving line of credit. The transaction is expected to close in the third quarter.