SAN JOSE, Calif. -- VeriFone Holdings Inc. has agreed to acquire the payment systems business of Trintech Group PLC in an all-cash transaction. Trintech's unattended and outdoor payment systems will enhance VeriFone's solutions in the growing markets for self-service payment, vending and pay-at-the-pump applications, according to the company.
The acquisition includes a range of payment systems that will support and extend VeriFone's existing offerings for merchants and financial institutions. Alpharetta, Ga.-based VeriFone will take over distribution [image-nocss] of those products and will provide existing customers with service and support.
Addison, Texas-based Trintech is divesting its payment systems business to concentrate on its transaction reconciliation software products and services, which allow customers to optimize enterprise funds management performance, including transaction verification, account reconciliation, process management and compliance.
The acquisition continues VeriFone's expansion into new growth markets, said VeriFone chairman and CEO Douglas G. Bergeron. Trintech built a track record of innovation and leadership in unattended payment systems and EFT software. The acquisition of Trintech's payment business and its strong customer relationships will further enhance VeriFone's leadership in the growing and ever changing electronic payments business.
Under the terms of the agreement, VeriFone will pay Trintech $12.1 million cash for all of the outstanding shares of a newly formed subsidiary, which, prior to closing, will hold substantially all of the assets and liabilities of the payment-systems business of Trintech. The purchase price is subject to adjustment based on the working capital of the business and other accruals at the closing date. Trintech's board of directors has approved the sale, which is subject to customary closing conditions and is expected to close by the end of August 2006.
William Blair & Co. L.L.C. and Ion Equity acted as financial advisors to Trintech Group PLC. Financial Technology Partners LP and FTP Securities LLC acted as financial advisor to VeriFone.
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