Verifone Surges Greater Than 50 P.c After Acquisition Announcement

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Shares of Verifone skyrocketed greater than 50 p.c in prolonged buying and selling after a non-public fairness firm-led investor group introduced it might purchase the digital fee firm in a $3.4 billion deal.

Verifone’s inventory has fallen about 70% from its peak in 2011. The corporate’s point-of-sale programs, together with its widespread credit-card readers, have struggled in competitors with lower-priced opponents, particularly in rising markets like Brazil.

In its final annual earnings report, for the fiscal yr ended October 31, 2017, the corporate reported a internet lack of $174 million, up sharply from the earlier yr’s internet lack of solely $9 million, thanks largely to restructuring expenses. Income had been declining for the final two fiscal years, and got here in at $1.87 billion for the final full fiscal yr.

Non-public fairness agency Francisco Companions ls main the funding group, which additionally consists of British Columbia Funding Administration Company. The group will purchase Verifone for $23.04 per share, for a complete of $3.4 billion, together with debt.

The Verifone Board of Administrators unanimously authorized the settlement, which is predicted to shut through the third quarter of 2018, topic regulatory approvals. Upon completion, Verifone will grow to be a privately held firm.

 
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