Francisco Partners’ $3.4 Billion acquisition of Verifone Systems

Qatalyst Partners is acting as financial advisor to Verifone and Sullivan & Cromwell LLP is serving as Verifone’s legal advisor. Credit Suisse, Barclays and Royal Bank of Canada are acting as financial advisors and Kirkland & Ellis LLP is serving as legal advisor to the Francisco investor group. Credit Suisse, Barclays and Royal Bank of Canada have also provided committed debt financing for the transaction.

Verifone Systems, Inc. (NYSE: PAY), a world leader in payment and commerce solutions, and Francisco Partners, a leading technology-focused private equity firm, have entered into a definitive agreement under which an investor group led by Francisco Partners and including British Columbia Investment Management Corporation (“BCI”) will acquire Verifone for $23.04 per share in cash, representing a total consideration of approximately $3.4 billion, which includes Verifone’s net debt.

Under the terms of the agreement, Verifone stockholders will receive $23.04 in cash for each share of Verifone common stock held, representing a premium of approximately 54% to the Company’s closing share price of $15.00 on April 9, 2018. The Verifone Board of Directors has unanimously approved the definitive agreement and recommends that Verifone stockholders vote in favor of the transaction. Upon completion of the transaction, Verifone will become a privately held company.

Francisco Partners Management LLC is a private equity firm. The Company, led by Dipanjan Deb, Ezra Ben Perlman, Deep Shah and Sanford R. Robertson, seeks to invest in communications, internet, hardware, industrial, information technology services and software, financial technology, healthcare technology, outsourcing and transaction processing services, semiconductors and capital equipment, electronic product distributors, electronics components, systems, and manufacturing, business process outsourcing, security and enterprise application and infrastructure software, and communications service providers.

VeriFone Systems, Inc. is a global provider of technology that enables electronic payment transactions and value-added services at the point of sale. The company, led by Paul S Galant, Sheetal Shah and

Marc E Rothman, in 2017 recorded $1.871 Billion Revenues.

Kirkland & Ellis advised Francisco Partners with a team including corporate partners Adam Phillips (Picture), Robert Hayward, Robert Goedert, Sean Kramer, Anjna Mehta and James Beach, debt finance partners Christopher Kirkham and Brian Ford, technology & IP transactions partner Matthew Lovell, and regulatory partner Edwin del Hierro and of counsel Julie Kunetka.

 

Involved fees earner: Adam Phillips – Kirkland & Ellis; Robert Hayward – Kirkland & Ellis; Julie Kunetka – Kirkland & Ellis; James Beach – Kirkland & Ellis; Anjna Mehta – Kirkland & Ellis; Robert Goedert – Kirkland & Ellis; Matthew Lovell – Kirkland & Ellis; Brian Ford – Kirkland & Ellis; Edwin del Hierro – Kirkland & Ellis; Christopher Kirkham – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Francisco Partners;

 

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Author: Ambrogio Visconti