Verifone Systems Inc merges with Francisco Partners and goes private for $2.58 billion

Verifone Systems is a point-of-sale device maker. The development comes midst an increase in consumer spending vide credit cards.

Francisco Partners will take Verifone Systems Inc, a payments technology firm, private for $2.58 billion in cash.

With the news reaching the market, shares of Verifone Systems, which makes point-of-sale payment devices, surged by 52% in extended trading, to very close to its offer price of $23.04 per share.

According to Verifone, the deal is valued at $3.4 billion and includes debt; it expects the transaction to close during the third quarter of 2018.

The merger agreement includes a “go-shop” period, which allows Verifone’s board and advisers to consider alternative offers through May 24, said Verifone.

Incidentally, British Columbia Investment Management Corp, a Canadian institutional investor, is part of the investor group that is acquiring Verifone.

As per information made available in Verifone’s regulatory filing, the equity value of the deal was calculated based on 112.2 million outstanding diluted shares as of January 31.

Sullivan & Cromwell LLP acted as Verifone’s legal adviser and Qatalyst Partners acted as its financial adviser.

As for Francisco Partners, Barclays, Credit Suisse and Royal Bank of Canada acted as its financial advisers while Kirkland & Ellis LLP acted as its legal adviser.

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