Hewlett-Packard Co. raised the stakes in the emerging electronic commerce market by announcing it would acquire Verifone Inc., the prominent transaction automation company, for $1.2 billion.

The partners said Wednesday they signed a definitive agreement and expect to complete the stock transaction by midsummer, an outgrowth of a strategic relationship that had become increasingly close over the last year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.