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Vivotech said it has approached VeriFone about acquiring the U.S. assets of Hypercom once VeriFone's deal for Hypercom is complete.
March 31
Vivotech Inc.'s attempt to acquire a piece of Hypercom Corp. could be a move to resist the effects of consolidation among larger terminal makers.
The payments technology company said Thursday that it was in talks to purchase Hypercom's U.S. assets. VeriFone Systems Inc. is buying the remainder of Hypercom's business.
Todd Ablowitz, the president of Double Diamond Group LLC, a payments consulting firm in Centennial, Colo., said Vivotech is "seeing the large players consolidate."
"And if this consolidation happens from three parties down to two or one in the U.S.," Ablowitz said, "it puts a lot of pressure on Vivotech and the market in general."
VeriFone, of San Jose, Calif., said in November that it would spin off Hypercom's U.S. assets after it completes its purchase of the Scottsdale, Ariz., vendor in the second half of this year.
The other major terminal maker is Ingenico SA, which made a failed attempt to buy Hypercom in 2008. Ingenico is also interested in buying Hypercom's U.S. business, according to a report Thursday by Bloomberg News.
Spokesmen for Hypercom, VeriFone and Ingenico said they had no comment. Vivotech did not return calls requesting comment.
Vivotech primarily provides software and systems for the use of near-field communication technology. If it succeeds in buying part of Hypercom, it would gain more U.S. customers and a countertop product to sell to smaller merchants. Today Vivotech sells hardware for multilane merchants.
Vivotech, of Santa Clara, Calif., could also attract new business for itself as the result of an acquisition.
"Card players need to be closely aligned with these companies," said Brian Riley, a research director in the bank cards practice at TowerGroup.
"That's where the technology is headed, and that's where the feet on the street are," Riley said.
