On Tuesday, Verifone’s shares surged more than 52 percent, to close at $22.78, after the company said late Monday that it agreed to be acquired by a private-equity group led by Francisco Partners that also includes British Columbia Investment Management for $2.6 billion in cash.
When Verifone’s debt is included, the deal’s total value is $3.4 billion.
Under terms of the deal, Verifone shareholders will receive $23.04 a share for their company stock, which is a 54 percent premium above Monday’s closing price of $15 a share. The agreement also includes a “go-shop” period that gives Verifone’s board of directors until May 24 to seek out and potentially accept other acquisition proposals.
In a statement, Verifone Chief Executive Paul Galant said the deal to go private “reflects the progress we have made executing our transformation from a terminal sales company to a payments and commerce solutions provider.”
Verifone is best known for its point-of-sale terminals and devices for processing credit- and debit-card transactions at retail outlets. The company has also begun offering handheld mobile-payment devices and platforms to its product line.
Bottom line: This is a very high-stakes turnaround, as Verifone shares closed yesterday at their lowest level since late 2009.
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Timeline: The deal includes a “go-shop” period that expires on May 24, during which time it can solicit superior offers.
Other parties: British Columbia Investment Management is joining Francisco on the buyside, while Qatalyst Partners represented Verifone. Prior Verifone owners include buyout firms Gores Group and GTCR.
Article contribution from Axios.com