VeriFone Systems, Inc. (NYSE: PAY) saw its stock rise Tuesday, as the world leader in payment and commerce solutions, and Francisco Partners, a leading technology-focused private equity firm, entered into a definitive agreement.
An investor group led by Francisco Partners and including British Columbia Investment Management Corporation will acquire VeriFone for $23.04 per share in cash, representing a total consideration of approximately $3.4 billion, which includes VeriFone’s net debt.
The price represents a premium of approximately 54% to the Company’s closing share price of $15.00 on April 9. Upon completion of the transaction, VeriFone will become a privately held company.
VeriFone CEO Paul Galant said, "We are pleased to reach this agreement with Francisco Partners. This transaction delivers significant cash value to our stockholders and provides compelling benefits for our clients.
"We believe this transaction reflects the progress we have made executing our transformation from a terminal sales company to a payments and commerce solutions provider."
PAY shares opened Tuesday up $7.83, or 52.2% to $22.83, a new 52-week high
