VeriFone to Buy Point for E600m
Point is a Stockholm-based provider of payment and gateway services for retailers. It has operations in 11 Northern European countries and serves a captive network encompassing almost 475,000 merchant contracts. Nordic Capital acquired Point in 2004.
The acquisition is expected to close by the end of 2011, and is subject to customary closing conditions.
Johan Tjarnberg, CEO of Point, said: â€œWe 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.â€
During the first 12 months, VeriFone expects the acquisition to add approximately $260m in sales. The acquisition is also expected to be immediately accretive to VeriFone's gross margins, operating margins and growth rates.
Douglas Bergeron, CEO of VeriFone, said: â€œWe 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.
â€œFor 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.â€
Will the purchase commercially benefit VeriFone?
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