After the market closed on Monday, the payment and commerce tech company VeriFone Systems (NYSE:PAY) announced that the company will be going private. VeriFone will be bought by the tech-focused private equity company Francisco Partners for approximately $3.4 billion USD in cash, or $23.04 per share for each of the company’s commonly held stock.
This amount will also include VeriFone’s net debt.
Shares of the company immediately shot up over 50% today and are currently sitting around the low 20s.
VeriFone Systems CEO, Paul Galant, is “pleased to reach this agreement with Francisco Partners.”
The agreement between both companies will let VeriFone have a “go-shop” period, which will allow the company’s Board of Directors to actively search and find an alternative deal by May 24, 2018.
The agreement does not have a financing condition, which would have allowed Francisco Partners to get out of the contract if VeriFone violated a part it.
If all goes well, the deal is expected to close within the third quarter of this year.
The company’s Board of Directors unanimously approved the agreement with Francisco Partners and encourages shareholders to approve of it, as well.
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Galant believes the “transaction reflects the progress [they] have made executing [the company’s] transformation from a terminal sales company to a payments and commerce solutions provider.”
Established in 1981, VeriFone Systems is one of the largest POS terminal vendors in the world and operates in more than 150 countries, with nearly 6,000 employees. The company was one of the first to provide a way for businesses to process credit card payments electronically.
Dipanjan Deb, co-founder and CEO of Francisco Partners, has said, “Verifone will receive the highest focus of Francisco Partners as [they] support its continued growth and transformation in an increasingly software-centric world.”
Shares of VeriFone look as if they will stay within the low 20s for the rest of the day.
Featured Image: twitter
