VeriFone Holdings to acquire Lipman Electronic Engineering

VeriFone Holdings to acquire Lipman Electronic Engineering

VeriFone Holdings Inc. (NYSE:PAY) has said that they have decided to acquire rival electronic payment systems maker Lipman Electronic Engineering Ltd. (LPMA.TA). The deal would be conducted in a cash and stock transaction and would be worth around $793 million.

The two companies expect this deal to be complete by October 31 and Lipman shareholders would be receiving for each Lipman share 0.5 shares of VeriFone common stock and $14.30 in cash. This would further be adjusted for special dividends. This dividend is expected to be in the range of $23 million.

However, this deal between the two companies would require approval from shareholders of both companies and customary regulatory approvals. After the acquisition is complete, VeriFone would continue to trade on the New York Stock Exchange. It would further be dual listed on the Tel Aviv Stock Exchange.

VeriFone used the services of Lehman Brothers for financial advice for this transaction. Lipman on their part used the services of Merrill Lynch.