Technology/Services

VeriFone Completes Acquisition of Hypercom

Hypercom divests U.S. payment systems business to The Gores Group

SAN JOSE, Calif. -- VeriFone Systems Inc. has announced the completion of its acquisition of Hypercom Corp. In connection with the closing, VeriFone and Hypercom reached a settlement with the U.S. Department of Justice, following which Hypercom divested its U.S. payment systems business to The Gores Group LLC.

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"This strategic acquisition complements VeriFone's position as a trusted, worldwide leader of the electronic payment industry," said VeriFone CEO Douglas G. Bergeron. "VeriFone plans to grow and enhance all major product lines that existed prior to completing this acquisition, bolstered with the strong VeriFone brand identity."

The new VeriFone represents greater geographical and product and services diversification, the company said.

Hypercom's presence in a number of important markets enables VeriFone to accelerate overseas growth, increase innovation and build value for customers, employees and shareholders.

The Gores Group, founded by Alec E. Gores in 1987, is a private-equity firm focused on acquiring controlling interests in mature and growing businesses. Since its inception, Los Angeles-based Gores has acquired 80 companies worldwide with combined revenues in excess of $15 billion. Currently, Gores has $4 billion in equity under active management. Gores has become a leading investor primarily in the technology, telecommunications, business services, industrial, healthcare, media and consumer and retail sectors.

San Jose, Calif.-based VeriFone Systems is a global leader in secure electronic payment solutions. It provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer- facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets.

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