Verifone, the payments company, announced on Monday (July 9) that its Chief Executive Officer Paul Galant has decided to relinquish his role effective as of the close of the previously announced deal with Francisco Partners.
In a press release, Verifone said the transaction is expected to close during the third quarter. At that point, Michael Pulli, formerly CEO of Pace Plc until its acquisition by ARRIS Group, will become CEO. Galant will continue to serve on Verifone’s board as vice chairman. He will also become a senior advisor to Francisco Partners on payment strategies and opportunities.
“It has been an honor to lead Verifone through a time of rapid change in the payments industry, and I couldn’t be more proud of all that our team has accomplished as we prepare to enter our next phase under new ownership,” said Galant said in the press release. “We have restored Verifone to a position of strength while staying true to our roots of innovation, and I transition to my new role having full confidence that Verifone is in the best position from which to drive a new chapter of growth. I’m excited to continue to work with Mike Pulli and the management team as vice chairman.”
Peter Christodoulo, a partner at Francisco Partners, confirmed in the same press release that Francisco is expected to bring Pulli on as the new CEO. “Mike’s experience and success in transforming Pace Plc from a hardware company to a provider of integrated hardware and software systems and services will be of great benefit to Verifone as it continues its transformation in a private context,” said Christodoulo.
In April, Verifone announced it had agreed to a $3.4 billion deal – accounting for both cash and debt – that will take the firm private. The deal, which the company struck with an investor group led by Francisco Partners, is expected to close in the third quarter of this year. The agreement featured a “go shop” provision, which in turn means that Verifone management can mull alternative offers, should they materialize, through a period ending on May 24. Other investors include Canadian firm British Columbia Investment Management Corporation. Qatalyst Partners is serving as financial adviser to Verifone.