VeriFone Systems, a provider of secure electronic payment technologies, announced
that it has signed an agreement to acquire point, Northern Europe’s largest
provider of payment and gateway services and solutions for retailers from
Nordic Capital for Euro 600 million.
VeriFone plans to extend the Point platform
throughout the region and beyond, with the aim of creating the world’s largest
infrastructure for rapid deployment of alternative payments.
Point’s strong network in Europe helps the
company offer retailers a full range of services and solutions, including
point-of-sale technology and support, gateway services, card encryption
services, and multi-channel e-commerce processing.
The 125 software developers at Point have
built unique European multi-country payment software that works seamlessly for
traditional electronic payments and Internet payments.
“We are delighted to welcome Point
customers and Point employees to VeriFone. They have built a phenomenal
business and we believe that the best is yet to come,” said Douglas G.
Bergeron, VeriFone CEO.
“For the past two years, we have been
transforming our business to respond to the rapidly evolving needs of
consumers, retailers, and payment innovators worldwide. Our vision is to offer
retailers everywhere a managed service to easily accept all existing payment types,
including the evolving alternative and mobile payment methods being offered by
Google, PayPal, Groupon, Isis, Visa, MasterCard, and American Express. At the
same time, we can increasingly offer the new payment entrants easy and
accelerated access to our worldwide installation of more than 20 million
merchant lanes,” Bergeron added.
VeriFone will pay approximately Euro 600 million to acquire all of the equity
of Point and will also retire at closing existing Point debt of approximately Euro
VeriFone expects the acquisition to add
approximately $260 million in sales within one year. The acquisition is also
expected to be immediately accretive to VeriFone’s gross margins, operating
margins and growth rates. VeriFone expects total services revenue to exceed 30
percent of sales in fiscal year 2012, and 50 percent of revenue by fiscal year
“We are committed to maintaining the high growth and entrepreneurial
culture that has driven our success over the past two decades. We have known
and worked with VeriFone for 20 years and their fast-paced culture is the Point
culture,” said Johan Tjarnberg, Point
VeriFone Systems recently announced it
has completed the acquisition of Destiny Electronic Commerce, a South
Africa-based electronic payments solutions provider.
By Telecomlead.com Team