Private equity firm Francisco Partners has signed a definitive agreement to acquire point-of-sale (POS) terminals maker Verifone Systems for a total cash consideration of about $3.4bn.
The $23.04 per share transaction will be carried out through an investor group that is led by Francisco Partners and includes British Columbia Investment Management.
Founded in 1981, Verifone originally focussed on offering POS devices and its portfolio currently comprises more than 30 million devices across more than 150 countries.
The company further expanded its operations into payments and commerce solutions segment.
Verifone CEO Paul Galant said: “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.”
The company believes that Francisco Partners’ resources and expertise in driving global technology businesses will support its goal to provide better services for its clients.
The acqusition is subject to customary closing conditions and is set to close in the third quarter of this year. After completion of the transaction, Verifone will operate as a privately-held entity.
Francisco Partners co-founder & CEO Dipanjan Deb said: “This investment builds on the strength of our financial technology, systems and software franchises.
“Verifone will receive the highest focus of Francisco Partners as we support its continued growth and transformation in an increasingly software-centric world.”
Under the terms of the merger agreement, Verifone will have a ‘go-shop’ period until 24 May 2018, during which it can pursue other potential negotiations and alternate acquisition proposals.