Wednesday, September 29, 2010

VeriFone Systems bids for Hypercom Corporation

VeriFone Systems Inc., a company that specializes in secure electronic payment has offered in buy smaller competitor Hypercom in an all-cash deal of $290 million. The company had previously rejected an all-stock offer made a week ago. Hypercom shares jumped over 45% in after-hours trading. If VeriFone manages to acquire the company it will increase its share as a global provider of secure transaction terminals, networking devices, and management systems.




Hypercom Corporation (Hypercom) is a global provider of electronic payment and transaction solutions and value-added services at the point of transaction. The Company designs and sells a variety of electronic transaction terminals, peripheral devices, transaction networking devices, transaction management systems, application software and information delivery services. In addition, it provides directly, or through contractors, support and related services, which include maintenance, onsite technology assessments, network training, and design and implementation. Its customers include domestic and international financial institutions, electronic payment processors, transaction network operators, retailers, system integrators, independent sales organizations (ISOs) and distributors. The Company also sell its products to companies in the hospitality, transportation, healthcare, prepaid card and restaurant industries.

VeriFone Systems, Inc., formerly VeriFone Holdings, Inc., is engaged in secure electronic payment solutions. The Company provides solutions and services that add value to the point-of-sale (POS) with merchant-operated, consumer-facing, and self-service payment systems for the financial, retail, hospitality, petroleum, transportation, government and healthcare vertical markets. The Company’s system solutions consist of POS electronic payment devices that run third-party operating systems, security and encryption software, and certified payment software, as well as other third-party, value-added applications. The Company’s customers include primarily financial institutions, payment processors, petroleum companies, large retailers, government organizations and healthcare companies, as well as independent sales organizations. In January 2010, the Company announced that it has acquired the Clear Channel Taxi Media business from Clear Channel Outdoor Holdings, Inc.

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