A consortium of investors led by Francisco Partners has agreed to acquire FinTech business VeriFone Systems for around $3.4bn.
The deal, which includes debt, will see Francisco pay $23.04 in cash per share, a premium of 54 per cent over the closing share price on Monday.
VeriFone in payment and commerce solutions provider. With a footprint of more than 30 million devices in more than 150 countries, it is trusted by experts working with retail brands, financial institutions, and payment providers.
The company claims its Integrated Payment Solutions provide ‘the complete tools’ for accepting and managing card payments – online, in-store or via mobile. It can also manage a user’s payments solution, including maintaining high security standards, and highlighting where they can use payments to add value to customer encounters.
Verifone has also developed future-proof security solutions that safeguard customer data from end-to-end in order to protect businesses ‘beyond immediate dangers’. It provides complete protection against card fraud, from physically securing hardware to preventing malicious software breaches through its Point to Point Encryption (P2PE) payments as a service platform.
The consortium, which also includes British Columbia Investment Management Corporation, plans to provide capital to VeriFone, allowing it to meet its “attractive long-term growth prospects”, said Francisco partner Peter Christodoulo.
He added, “We are excited to become investors and stewards of this important platform in the global payments and commerce ecosystem.”
The take-private deal, which is expected to close in Q3 2018, marks Francisco’s 11th investment in the financial technology sector. Its previous investments include Paysafe, a global payments acceptance solution provider, Prosper, a US peer-to-peer lending company, and Capsilon, a provider of cloud-based document and data management solutions for the mortgage industry.
Earlier this month, Thoma Bravo has agreed to sell Bomgar, a secure access solutions provider, to Francisco Partners. Francisco said the acquisition of Bomgar’s privileged access and identity management solutions will strength its security technology portfolio. The new owner’s experience in the security technology market will enable Bomgar to expand its platform and portfolio and take advantage of new market opportunities according to CEO Matt Dircks.
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