A group of investors led by Francisco Partners, a technology-focused private equity firm, is acquiring the electronic payment solutions company Verifone for $3.4 billion, the companies announced Monday.
The Verifone board of directors has unanimously approved the agreement, which will give Verifone stockholders $23.04 in cash for each share of Verifone common stock held. That's more than 50 percent higher than the company's closing share price of $15 on Monday. In addition to Francisco Partners, the investors in the deal include British Columbia Investment Management Corporation ("BCI").
The deal is expected to close in the third calendar quarter of 2018. After that, Verifone will be a privately held company.
The point-of-sale hardware/software firm competes against other incumbents in the market like First Data and newer companies like Square.
In a statement, Verifone CEO Paul Galant said the deal "reflects the progress we have made executing our transformation from a terminal sales company to a payments and commerce solutions provider."
He added, "With Francisco Partners' resources, expertise and track-record growing global technology businesses, we are confident that we will be better positioned to serve the needs of our clients around the globe."
Peter Christodoulo, a partner at Francisco Partners, said Verifone "has attractive long-term growth prospects."