SAN JOSE, Calif. -- An investor group led by Francisco Partners, a tech-focused private-equity firm, is acquiring global payment and commerce solution provider Verifone. As part of the deal, Verifone CEO Paul Galant is stepping down, effective at the close of the transaction, which is projected to occur in the third quarter of 2018.
The investor group purchasing Verifone also includes British Columbia Investment Management Corp. (BCI), based in Victoria, British Columbia. The group is set to acquire Verifone for $23.04 per share in cash, representing a total of approximately $3.4 billion, including Verifone’s net debt. Verifone’s board of directors unanimously approved the agreement at the time of its announcement.
Verifone will become a private company upon completion of the transaction.
“Verifone continues to build compelling and impressive products and technology and has attractive long-term growth prospects,” said Peter Christodoulo, partner with Francisco Partners. “We are excited to become investors and stewards of this important platform in the global payments and commerce ecosystem.”
Michael Pulli, CEO of Pace plc until its acquisition by Arris Group Inc., will succeed Galant as Verifone’s CEO. Before its acquisition, Pace plc was a British company that offered hardware, software and services for the TV and broadband services industry. After stepping down, Galant will hold a position on Verifone’s board of directors as vice chairman. Galant will also become senior adviser to Francisco Partners on payments industry strategy and opportunities.
“It has been an honor to lead Verifone through a time of rapid change in the payments industry, and I couldn’t be more proud of all that our team has accomplished as we prepare to enter our next phase under new ownership,” said Galant. “I’m excited to continue to work with Mike Pulli and the management team as vice chairman.”
“Paul’s drive, vision and deep commitment to Verifone and our clients has positioned the company well for its next phase of growth in partnership with Francisco Partners," said Christodoulo. "We are grateful that Paul has agreed to continue his significant contributions to Verifone and look forward to continuing to benefit from his industry experience and expertise.”
San Jose, Calif.-based Verifone works with a growing footprint of more than 30 million payment and commerce devices in more than 150 countries. The company works with a variety of organizations, from retail brands to financial institutions and payment providers.
Francisco Partners, based in San Francisco, is a global private equity firm that specializes in technology and tech-enabled service businesses. The company has been in business for more than 18 years and has raised more than $14 billion in committed capital and invested in more than 200 technology companies.