The stock of VeriFone Systems Inc (NYSE:PAY) closed at $22.78 gaining 51.87% in yesterday’s trading session. The shares of this San Jose-based Company on Tuesday closed at 51.8 percent and this followed the latest move by its board of directors. The resolution had been to take the company private and that was to go at an amount of about $2.6 billion in terms of cash.
The Canada-based British Columbia Investment Management Corp together with the San Francisco-based Francisco Partners led a group of investors towards the purchase of a 37-year-old company and to be more specific the deal was to cost about $23.04 per share in cash.
A person familiar with the matter while speaking to a number of news reporters interviewing him disclosed that as of Monday the shares closed at $15.
Trusted sources indicated that the Company had taken to valuing the deal at $3.4 billion total but of course that was to be effective from that point the investment group assumed the massive debt in the company. Most probably, it is anticipated that the deal might be coming to a close this particular year during the third quarter.
Fundamentally, the buyout agreement is such that it includes the so-called “go shop” period which is all about Verifone’s board of directors actively soliciting offers from any other potential investor groups and of course that will be through May 24.
Verifone CEO Paul Galant in making his latest statement outlined that the transaction at hand moved quite a long way helping deliver great cash value to a large number of the company’s stockholders not forgetting the aspect of providing compelling benefits to the large number of clients.
According to the official, that particular transaction was a real-time reflection of the monumental progress they had witnessed so far. The Company had done much in terms of executing its transformation from a terminal sales company to where it is at the moment –a major trusted payments and commerce solutions provider.
The Company is renowned at large scale as a provider of about 30 million credit card readers at restaurants, retail shops and grocery stores in over 150 countries.