Technology
Are Verifone Shareholders Getting Enough in the Merger?
Published:
Last Updated:
Verifone Systems Inc. (NYSE: PAY) saw its shares skyrocket after news that the company would be acquired by Francisco Partners. Ultimately, this will make Verifone a privately held company. But are investors getting their money’s worth for this deal?
Note that this merger includes a “go-shop” period through May 24 in which Verifone can potentially find or entertain a better offer.
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 roughly 54% to the closing price of $15.00 on April 9.
Looking at the 50-day and 200-day moving averages of $17.11 and $18.44, respectively, shareholders are getting premiums of 34.7% and 24.9%. And if we look back a couple years, this stock was valued around $35 per share. It reached as high as $55 in 2011.
The Verifone board of directors has unanimously approved the definitive agreement and recommends that Verifone stockholders vote in favor of the transaction.
The transaction is expected to close during the third calendar quarter of 2018, subject to customary closing conditions, including regulatory approvals.
Paul Galant, CEO of Verifone, commented:
We are pleased to reach this agreement with Francisco Partners. 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. 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.
Shares of Verifone were last seen up 52% at $22.81, with a consensus analyst price target of $20.64 and a 52-week trading range of $14.90 to $22.86.
24/7 Wall St.Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
