VeriFone Systems Inc. on Sept. 9 announced the acquisition of encryption-services provider Semtek Innovative Solutions Corp., a company in which it previously provided equity funding.
Semtek shareholders received VeriFone common shares that valued the company at $18 million. VeriFone already was using the company’s encryption technology in its VeriShield Protect encryption service.
The San Jose, Calif.-based point-of-sale terminal maker plans to integrate the development, sales, implementation and support of Semtek’s encryption services into its operations immediately to better fulfill customer needs, increase revenue and enhance support, VeriFone noted in a news release. VeriFone says it also is offering royalty-free software licenses to device manufactures and payment processors to drive market adoption of VeriShield.
VeriFone initially invested in Semtek in October 2007. The company plans to absorb the encryption provider’s operations into its Integrated Systems organization.
