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FT Partners Advises Verifone on its acquisition of Lipman Electronic Engineering

FT Partners Advises Verifone on its acquisition of Lipman Electronic Engineering
Overview of Transaction
  • On April 10, 2006, VeriFone Holdings ("VeriFone"; NYSE:PAY) and Lipman Electronic Engineering ("Lipman") announced that they entered into an agreement for VeriFone to acquire Lipman for $793 mm; VeriFone raised $540 mm of debt to help finance the transaction
  • Lipman is an Israel-based provider of electronic payment systems
  • VeriFone is a leading provider of secure electronic payment solutions at the Point of Sale; the Company had a ~$2.2 bn (1) market cap at the time of the transaction
Significance of Transaction
  • VeriFone becomes the largest global provider of electronic payment solutions and services, capitalizing on accelerating growth in emerging markets and demand for IP-based and wireless payment systems
  • Lipman's industry-leading solutions enable VeriFone to extend its technology leadership, particularly in the fast-growing wireless and IP segments, and to offer a wider range of solutions in a more efficient fashion worldwide
FT Partners' Role
  • FT Partners has worked with VeriFone for several years and advised on 6 of its deals, including its $177 mm IPO
  • FT Partners acted as sole structuring agent to VeriFone
  • FT Partners leveraged its extensive transactional experience in the payments and banking sector to drive the process and ensure a successful outcome for its client
  • Created a competitive bidding process, which yielded strong proposals from numerous parties