GTCR Announces Significant Investment in Verifone: Recapitalization To Accelerate VeriFone Growth
June 18, 2002
Transaction Highlights

  • VeriFone, Inc. is the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers

  • VeriFone has annual revenues of approximately $350 million

  • GTCR partners with VeriFone CEO Douglas Bergeron and senior executives with strong track record at the company

  • Transaction adds to GTCR’s payments industry investment portfolio


Chicago, June 18, 2002 – GTCR Golder Rauner, LLC today announced that it has entered into a definitive agreement to recapitalize VeriFone, Inc. Gores Technology Group, the company’s existing equity investor, will retain an ownership interest in the company as a result of the transaction. The transaction is expected to close rapidly following the receipt of customary regulatory approvals. Transaction terms were not disclosed. Kirkland & Ellis served as legal counsel to GTCR. Riordan & McKinzie served as legal counsel to Gores Technology and UBS Warburg served as its exclusive financial advisor.

“VeriFone occupies an exceptional market position in the payments industry. We believe that the company will continue to grow as it further leverages its brand, customer service capabilities, and technology to serve the needs of merchants, transaction processors, and financial institutions,” commented Collin Roche, Principal at GTCR. “Doug Bergeron and his experienced management team have reinvigorated VeriFone, making the company more entrepreneurial by creating new partnership relationships with its customers and distributors. Many of these managers previously participated in bringing VeriFone from a start-up to a highly successful payment technology company. More recently, Doug and the management team reestablished a strong level of profitability at the company and directed their resources to the continual upgrade of the company’s product line.”

“After completing a successful turnaround of VeriFone, we believe that this is the logical next step in achieving VeriFone’s growth strategy and maintaining its market leading position,” said Alec Gores, Founder and Chairman of Gores Technology Group. “We are confident that GTCR’s significant experience in the payment industry will add to VeriFone’s competitive position.”

Based in Santa Clara, California, VeriFone is a leader in providing secure electronic transaction solutions, including hardware, software and services for debit, credit, checks and smart cards, in over 100 countries. VeriFone’s key markets include retail, petroleum and convenience store operations, banks and transaction processors, with additional indirect product distribution to retail merchants, lottery providers, healthcare providers and government agencies. VeriFone has regional sales offices in the Americas (North America, Latin America, the Caribbean and South America), Europe, Middle East, Africa, Asia and the Pacific Rim.

GTCR partnered with CEO Douglas Bergeron and senior management of the company in the recapitalization. Prior to joining VeriFone, Mr. Bergeron was CEO of Geac Computer Corporation, Canada’s largest publicly traded software company, and from 1990 through 1999, CEO of various business units of SunGard Data Systems, Inc. He was an instrumental force in leading SunGard Data Systems through a series of acquisitions, which helped SunGard become a leading provider of financial systems technology for the derivatives industry, brokerage operations, and exchanges.

“I am thrilled to have partnered with GTCR to recapitalize VeriFone. Given their knowledge and experience in the payments industry, GTCR is a great long-term partner for VeriFone’s employees, customers and international distributors, as we execute on our growth strategy,” stated Doug Bergeron. “This investment is an affirmation of the VeriFone’s strategy and competitive position.”

Other payments industry investments of GTCR include Transaction Network Services, Genpass, TransFirst, and Risk Management Alternatives.

About VeriFone Inc.

Based in Santa Clara, California, VeriFone, Inc. is the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers. VeriFone has shipped more than ten million electronic payment systems, which are used in more than 100 countries. More information about VeriFone can be found at www.verifone.com.

About GTCR Golder Rauner, LLC

Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $4 billion of equity capital invested in a wide range of companies and industries. Its primary areas of investment focus include transaction processing and payments services, communication services, information technology services, healthcare services, and outsourced business services. More information about GTCR can be found at www.gtcr.com.

About Gores Technology Group

With headquarters in Los Angeles, Gores Technology Group (GTG) is a privately held international acquisition and management firm that pursues an aggressive strategy of acquiring promising high-technology organizations and managing them for growth and profitability. GTG has a proven track record of acquiring and successfully managing companies -- including many divisions acquired from large publicly traded companies -- through its commitment to customers, employees, and continued development of intellectual property. GTG has acquired and managed approximately 40 interrelated but autonomous technology-oriented companies with locations throughout the world. Those companies provide a broad range of technology based products and services to a substantial customer base representing millions of active users worldwide. More information about GTG can be found at www.gores.com.