(Reuters) - Payments technology company Verifone Systems Inc (PAY.N) on Monday agreed to be taken private by an investor group led by Francisco Partners for $2.58 billion in cash.
Shares of the company, which makes point-of-sale payment devices, surged 52 percent in extended trading, just shy of the offer price of $23.04 per share.
Verifone said the deal was valued at $3.4 billion, including debt, and that the transaction was expected to close during the third quarter of this year.
The merger agreement includes a “go-shop” period, which allows Verifone’s board and advisers to consider alternative offers through May 24, it said.
Canadian institutional investor British Columbia Investment Management Corp is part of the investor group that is buying Verifone.
The equity value of the deal was calculated based on 112.2 million outstanding diluted shares as of Jan. 31, according to Verifone’s regulatory filing.
Qatalyst Partners is acting as financial adviser to Verifone and Sullivan & Cromwell LLP is its legal adviser.
Credit Suisse, Barclays and Royal Bank of Canada are financial advisers to the Francisco investor group, while Kirkland & Ellis LLP is its legal adviser.
Reporting by Munsif Vengattil in Bengaluru; Editing by Anil D'Silva