Hatim A. Tyabji announced Tuesday that he plans to retire at yearend as chairman, president, and chief executive officer of Verifone Inc.

Mr. Tyabji, 53, led the payment automation company for 12 years. It essentially created the market for inexpensive credit card authorization terminals, and in 1995 put a pioneering Internet commerce strategy in place.

The latter attracted the interest of the computer industry giant Hewlett-Packard Co., which bought Verifone last year for $1.3 billion.

Hewlett-Packard chairman Lewis Platt, in a message to employees, praised Mr. Tyabji for building "an exceptional company with a very strong culture similar to HP's."

Verifone, as an independent subsidiary with $600 million of revenue and 3,500 employees, will now report to its parent's enterprise systems group.

Mr. Tyabji, who expects to help identify a successor with group executive vice president Bill Russell, said simply, "It is time for a change. But first I am determined to leave this company in the best shape I possibly can."

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.