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VeriFone and Hypercom are considering the sale of Hypercom's U.S. business to an "alternative buyer" in response to an antitrust lawsuit the U.S. Justice Department filed Thursday.
May 13
VeriFone Systems Inc. finished its purchase of the rival terminal maker Hypercom Corp. after it reached a settlement with the Justice Department to sell Hypercom's U.S. terminal business to the private-equity firm Gores Group LLC.
VeriFone, of San Jose, Calif., announced in November it would buy Hypercom, of Scottsdale, Ariz., for $485 million. VeriFone and Hypercom attempted to appease antitrust concerns by agreeing to sell Hypercom's U.S. terminal business to French terminal maker Ingenico SA for $54 million in April.
In May, the Justice Department filed an antitrust lawsuit against the companies, arguing the acquisition would eliminate competition for point of sale terminals and would not create a new independent competitor.
Under the settlement announced Thursday, VeriFone and Hypercom agreed to sell Hypercom's U.S. terminal business, including physical assets, personnel, intellectual property and other assets.
"The proposed sale of the Hypercom assets to Gores will create an independent and significant competitor in the United States, both right now and into the future," Christine Varney, an assistant attorney general at the Justice Department, said in a press release.
VeriFone has had close ties with Gores. Hewlett-Packard sold VeriFone to Gores in 2001. Gores spun off VeriFone the next year, and VeriFone went public in 2005.
