Mergers and Acquistions News
Categories: Hardware
November 17th 2010, 17:02PM
VeriFone Systems, a provider of electronic payment tools, will acquire Hypercom Corporation, a digital transactions solutions firm, for $458 million (£305 million), including assumed net debt.
The deal will allow VeriFone to expand in key European markets.
"Consistent with our vision as a global leader in secure electronic payment solutions, we have placed strategic focus on replicating our North American success in key markets in continental Europe," said VeriFone chief executive officer (CEO) Douglas G. Bergeron.
Philippe Tartavull, Hypercom's CEO and president, explained that over a three-year period, the company has increased its revenue from almost $290 million to approximately $450 million.
Subject to shareholder and customary approvals, the deal is expected to close in the second half of 2011.
According to Reuters, VeriFone opened a "hostile" $290 million bid, exclusive of debt, at the end of September this year, boosting Hypercom shares by 45 per cent.
Hypercom rebuffed the bid, adopting a poison pill, a form of takeover defence in which a firm's stockholders are issued with warrants enabling them to acquire shares at rock-bottom prices in case a hostile bid succeeds in acquiring any stock.
This position would make a takeover extraordinarily expensive, forcing any suitor to back off.
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