Hypercom Corp.’s preview of its fourth-quarter earnings Feb. 16 raised fears about the viability of VeriFone Systems Inc.’s plans to acquire its competitor in the second half of the year.
In a note to investors, Wedbush Morgan analyst Gil B. Luria suggested merchants might stop buying Hypercom terminals because of the proposed deal and instead start buying from VeriFone or Ingenico SA. That influx of business could cause San Jose, Calif.-based VeriFone to forgo the expense of buying Hypercom altogether.
Increased competition from larger competitors, market acceptance of new products and distractions from other deals also could affect the deal, Luria wrote.
Scottsdale, Ariz.-based Hypercom announced Wednesday that its preliminary fourth-quarter net revenue was up 19%, to $140 million from a year earlier (
Luria’s note appeared to have little effect on Hypercom’s stock, which on Feb. 17 closed unchanged from the previous day’s $11 per share.
