Payment and commerce solutions company Verifone Systems and Francisco Partners have entered into a definitive agreement under which an investor group led by Francisco Partners will acquire Verifone for approximately $3.4 billion.

The Verifone board of directors has unanimously approved the definitive agreement. Upon completion of the transaction, Verifone will become a privately held company.

The transaction is not subject to a financing condition and is expected to close during the third calendar quarter of 2018, subject to customary closing conditions, including receipt of stockholder and regulatory approvals. The merger agreement includes also a “go-shop” period.

Qatalyst Partners is acting as financial advisor to Verifone, and Sullivan & Cromwell is serving as Verifone’s legal advisor. Credit Suisse, Barclays and Royal Bank of Canada are acting as financial advisors and Kirkland & Ellis 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.

[Image courtesy: Verifone]