Verifone acquires Point International
VeriFoneIs buying Point International from Nordic Capital for the purpose of producing a new and alternative payments infrastructure.
As Northern Europe's largest payments and gateway services processing 10 million transactions per day, Point International offers retailers a large suite of services and solutions, including point-of-sale technology and support, gateway services, card encryption services, and multi-channel e-commerce processing.
Essentially, VeriFone's plan with this purchase is to offer retailers a managed service that will accept all existing payment types - including alternative and mobile payment methods being offered by Google, PayPal, Isis, Visa, MasterCard, and American Express.
VeriFone is paying approximately €600 million ($818 million) for Point International, and VeriFone will also retire Point's existing debt, worth roughly €170 million ($232 million), at closing.
The deal is expected to close by the end of 2011.
VeriFone has big expectations from this deal as well. During the first 12 months, VeriFone expects the acquisition to add approximately $260 million in sales.
The electronic payments solutions provider is also predicting total services revenue to exceed 30 percent of sales in fiscal year 2012, and 50 percent of revenue by fiscal year 2015.
