VeriFone Systems
Inc will acquire Hypercom Corp provided it agrees to a
divestiture, the Department of Justice has announced.
In order to complete the
acquisition, VeriFone will have to divest Hypercom’s US
point-of-sale terminals business to an entity sponsored by private
equity fund Gores Group LLC. The divestiture is hoped to eliminate
potential harm the merger could bring to the sales of POS
terminals.
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In response to the
department’s lawsuit at the US District Court for the District of
Columbia rejecting the initial proposed divestiture to
Ingenico – also a significant POS terminals provider, VeriFone and
Hypercom entered into a negotiation
settlement with the department to divest to an alternate
buyer.
“The Department of Justice’s proposed remedy
ensures that competition will remain in point-of-sale terminals
markets,” said Christine Varney, Assistant Attorney General in
charge of the Department of Justice’s Antitrust Division.
“The proposed sale of the Hypercom assets to Gores will create an
independent and significant competitor in the US, both right now
and into the future.”
The proposed remedy requires VeriFone and
Hypercom to sell Hypercom’s US POS terminals business to Gores
within 20 days of the final judgement. These will include
physical assets, personnel, intellectual property rights,
transitional support – all assets necessary to help Gore enter the
competition.
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