Hypercom Corp.’s shareholders have approved the $485 million merger with VeriFone Systems Inc., Hypercom announced Feb. 24.
Announced in November, the merger of the two point-of-sale device makers, will create a company generating nearly $2 billion, Scottsdale, Ariz.-based Hypercom said. The deal is expected to close in the second half of the year.
But, one analyst has some concerns about the merger and purchasing trends.
Hypercom’s preview of its fourth-quarter earnings Feb. 16 raised fears about the viability of VeriFone’s plans to acquire its competitor.
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 S.A. That shift 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.
Hypercom announced Feb. 16 that its preliminary fourth-quarter net revenue was up 19%, to $140 million from a year earlier. It said it plans to announce final results for the quarter on March 2, the day after VeriFone is scheduled to report.
