NFC software and systems company ViVOtech
believes the US’ Department of Justice (DOJ) is justified in its
block on the VeriFone/Hypercom merger as it makes a
second play for the US assets of Hypercom.
The DOJ has recently filed a civil antitrust
lawsuit intended to block the acquisition of e-payments solutions
provider Hypercom by rival VeriFone worth $485m.
Go deeper with GlobalData
“We totally understand the DOJ’s concerns,
because the cosy deal would essentially create a collaborative
duopoly in this competitive market inhibiting choice and
innovation, just as the NFC mobile commerce market is on the cusp
of becoming reality,” said Michael Mullagh, ViVOtech CEO.
“We believe our renewed approach to VeriFone
if executed, will be good for consumers and merchants, and perhaps
more importantly, is in the best interest and benefit of VeriFone
and Hypercom shareholders.”
ViVOtech claims an acquisition of Hypercom’s
US assets would allow it to accelerate the adoption of NFC
technology and ensure that a vigorous and competitive market
emerges.
In a joint statement, e-payments solution
providers VeriFone and Hypercom have revealed they are considering
the option of a divestiture to an alternative buyer.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe two parties have announced their intention
to work with the US’ Department of Justice (DOJ) to “better
understand its concerns and assess various options for the planned
divestiture of Hypercom’s US business, including the possibility of
a divestiture to an alternative buyer.”
Assuming a successful resolution of the DOJ’s
concerns and other closing conditions, VeriFone and Hypercom
believe the merger can be completed during the second half of
2011.
Sullivan & Cromwell LLP is acting as legal
counsel for VeriFone and DLA Piper US LLP is acting as legal
counsel for Hypercom.
Related articles: DOJ blocks VeriFone acquisition of Hypercom
