Wednesday, November 17, 2010

Verifone to Acquire Hypercom for $485 Million vs. $280 Million

VeriFone to Acquire Hypercom to Accelerate Global Expansion

Extends VeriFone’s Global Presence into Key Markets in Continental Europe
Transaction Expected to be Solidly Accretive to VeriFone
SAN JOSE, Calif. & PHOENIX--(BUSINESS WIRE)--VeriFone Systems, Inc. (NYSE: PAY), a global leader in secure electronic payment solutions, and Hypercom Corporation (NYSE: HYC), the high security electronic payment and digital transactions solutions provider, today announced a definitive agreement under which VeriFone will acquire Hypercom in an all-stock transaction valued at approximately $485 million, including net debt assumed by VeriFone.
“Over the last three years, Hypercom has strengthened customer relationships and increased revenue from almost $290 million to approximately $450 million”
Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, Hypercom shareholders will receive a fixed ratio of 0.23 shares of VeriFone common stock for each Hypercom share they own, valued at approximately $7.32 per share based on the closing price on November 16, 2010. VeriFone will also assume Hypercom’s outstanding warrants and stock options in the transaction.
“Consistent with our vision as a global leader in secure electronic payment solutions, we have placed strategic focus on replicating our North American success in key markets in continental Europe,” said VeriFone CEO Douglas G. Bergeron. “Hypercom has established itself in a number of important European markets, and this acquisition is an excellent and complementary way for us to accelerate our overseas growth, increase innovation and build value for our shareholders.”
“Over the last three years, Hypercom has strengthened customer relationships and increased revenue from almost $290 million to approximately $450 million,” said Philippe Tartavull, Chief Executive Officer and President of Hypercom. “Combined, Hypercom and VeriFone will create new growth opportunities and further drive penetration in the market. This transaction delivers a significant premium to our shareholders who should also benefit from the upside of being owners of an even stronger global company in the fast-growing electronic payment solutions space.”
The transaction is subject to approval by Hypercom shareholders and customary regulatory approvals, and is anticipated to close in the second half of 2011. The transaction is expected to be solidly accretive to current VeriFone shareholders during the first twelve months of combined operations, excluding one-time costs.
J.P. Morgan Securities LLC acted as VeriFone’s exclusive financial advisor and Sullivan & Cromwell LLP acted as VeriFone’s legal counsel. Hypercom’s exclusive financial advisor was UBS Securities and its legal advisor was DLA Piper US LLP.
Conference Call Information
VeriFone plans to conduct a conference call to discuss the announcement with its shareholders today, Wednesday November 17, at 6:00 AM Pacific. To access the live conference call, the dial-in numbers are as follows:
Domestic callers: 800-591-6930
International callers: +1-617-614-4908
Passcode: 49580271
To access the audio webcast, please go to VeriFone’s website (http://ir.verifone.com) at least ten minutes prior to the call to register. The recorded audio webcast will be available on VeriFone’s website until November 24, 2010.
A replay of the conference call, which can be accessed by dialing toll-free 888-286-8010 and outside the U.S. by dialing +1-617-801-6888, will be available until November 24, 2010. The access code for the replay is 18434899.
About VeriFone Systems, Inc. (www.verifone.com)
VeriFone (“VeriFone”) (NYSE: PAY) is a global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
About Hypercom Corporation (www.hypercom.com)
Hypercom Corporation (NYSE: HYC) is a global payment technology provider that delivers a full suite of high security, end-to-end electronic payment products, software solutions and services. The Company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, self-service and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA) and is a significant provider of electronic payment solutions and services in Western Europe and globally.
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Elavon to Market VeriFone’s PAYware Mobile Solution for iPhoneTM

Image representing VeriFone Holdings as depict...Image via CrunchBase
ATLANTA & SAN JOSE, Calif.--(BUSINESS WIRE)--Elavon, a wholly-owned subsidiary of U.S. Bancorp (NYSE: USB) and leading global payments provider, will market and support VeriFone Systems, Inc.’s (NYSE: PAY) PAYware Mobile secure card payment system for iPhone™. The solution transforms the iPhone into a mobile payment device with a card encryption sleeve that allows merchants to capture data via card swipe, a more secure, cost effective method than manually entering data.
http://www.elavon.com“VeriFone’s PAYware Mobile is a simple, secure and convenient solution ideal for our small business customers”
PAYware Mobile will be marketed through Elavon’s established sales channels including bank relationships, telesales, third-party providers and associations. It extends the flexibility of accepting card payments wherever and whenever a merchant requires, and offers real-time reporting including extensive transaction search capabilities. The PAYware Mobile app is PCI compliant, and the card encryption sleeve is compatible with the iPhone 3G and 3GS.
“VeriFone’s PAYware Mobile is a simple, secure and convenient solution ideal for our small business customers,” said Mike Passilla, president and CEO of Elavon. “Technology is rapidly changing the payments landscape, and mobile applications are leading the evolution. The ability to deliver secure, innovative solutions is a cornerstone for driving customer satisfaction and generating new business among merchants that have yet to adopt payment technology.”
“Elavon’s agreement to support PAYware Mobile reflects growing industry excitement over the leading card payment solution for iPhone,” said Paul Rasori, VeriFone senior vice president of marketing. “Elavon’s sales force will significantly expand the marketing reach for this innovative system.”
PAYware Mobile incorporates a stylus for signature capture and a mini-USB port for charging the iPhone while the ergonomic card encryption sleeve is attached. PAYware Mobile incorporates VeriFone’s VeriShield Protect end-to-end encryption technology for secure card payments.
About Elavon (www.elavon.com): Elavon’s Global Acquiring Solutions organization is a part of U.S. Bancorp (NYSE: USB). Elavon provides end-to-end payment processing services to more than one million merchants in the United States, Europe, Canada, Mexico and Puerto Rico. Solutions include credit and debit card processing, electronic check services, gift cards, dynamic currency conversion, multi-currency support, and cross-border acquiring. Elavon’s services are marketed through multiple alliance partner channels including financial institutions, trade associations and ISOs. Elavon has solutions to meet the needs of merchants in specialized markets including small business, retail, hospitality/T&E, health care, education and the public sector.
About VeriFone Systems, Inc. (www.verifone.com): VeriFone Systems, Inc. (“VeriFone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.

Contacts

Elavon Media Relations
Holly Lytle, 404-606-0129
holly.lytle@elavon.com
or
VeriFone Media Relations
Pete Bartolik, 508-283-4112
pete_bartolik@verifone.com
Permalink: http://www.businesswire.com/news/home/20101117005066/en/Elavon-Market-VeriFone%E2%80%99s-PAYware-Mobile-Solution-iPhoneTM

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Chase Paymentech Launches Fifth Annual Cyber Holiday Pulse Index

http://www.chase.com

DALLAS--(BUSINESS WIRE)--Chase Paymentech, a leading merchant acquirer and payment processor, today launched the fifth annual edition of the Cyber Holiday Pulse Index. Once again, the Pulse Index will track millions of payment transactions daily, representing 50 of the top U.S. retail Web sites as ranked by Internet Retailer magazine.

“The 2009 holiday season was good for e-commerce, and 2010 promises to be equally exciting”
This exclusive information resource will record online holiday shopping volume throughout the 2010 holiday shopping season. The Chase Paymentech Pulse Index also presents year-over-year trends, providing historical context to the holiday shopping statistics and identifying emerging online shopping trends. As in prior years, the index shows daily average ticket value as well as sales and transaction volume, providing even more in-depth insights into consumer behavior.
"As the economy recovers and retail sales return to growth, e-commerce has shown remarkable resilience," said Mike Duffy, President of Chase Paymentech. "The Pulse Index helps e-commerce businesses see that strength and monitor the health of the online market throughout the season."
Looking Back
Despite the challenging economic environment, the 2009 holiday season indicated healthy growth, according to the Chase Paymentech Pulse Index. Holiday online sales volume and transaction count both increased sharply, but the average ticket, or amount per sale, declined for the second year in a row. Overall, sales volume for the holiday season was up 17 percent versus 2008, and transaction count was up 30 percent. Average value per transaction, however, was down an unanticipated 9 percent.
Entering the Holiday Season
For online merchants, the return to growth that began last year has continued. “The 2009 holiday season was good for e-commerce, and 2010 promises to be equally exciting,” Duffy said. “So far this year, we have seen the Pulse merchants growing sales and transactions at rates ahead of the same time last year. We are ready to see if that trend continues into Black Friday, Cyber Monday, and beyond.”
Looking Forward
Sucharita Mulpuru, Vice-President and Principal Analyst at Forrester Research, said, "Web retailers are reporting a lot of strength in their online businesses and consumers are more comfortable than ever with the channel. Based on our research, we project 16 percent year over year growth for e-commerce this holiday season.
"The Chase Paymentech Pulse Index is an important tool to help us assess the experiences of web retailers every day," she added. "It helps us to adjust our forecast and put our finger on the 'pulse' of web retail sales."
The Pulse Index data is updated every business day throughout the holiday period, from Nov. 4 through Jan. 6. Insights, analysis and commentary will be provided weekly. For more information and to see the pulse of e-commerce in action, go to pulse.chasepaymentech.com.
Promoting E-commerce Growth and Online Security
Chase Paymentech and Chase Card Services are committed to helping consumers shop online safely and securely. Consumers can learn more about safe online shopping by visiting chase.com.
About Chase Paymentech
Paymentech, LLC (“Chase Paymentech”), a subsidiary of JPMorgan Chase (JPMC), is a global leader in payment processing and merchant acquiring, capable of authorizing transactions in more than 130 currencies. The company’s proprietary platforms provide access to a wide variety of payment methods, such as credit cards, debit cards, prepaid stored value cards and electronic check processing. In 2009, Chase Paymentech processed 18.0 billion transactions with a value of $409.7 billion, including an estimated half of all global Internet transactions. The company also provides a full set of solutions aimed at accelerating cash flow and managing transaction data. On the Internet or at the point of sale, Chase Paymentech’s unique combination of outstanding service, innovative solutions and financial strength offers solid benefits to companies both large and small. More information can be found at www.chasepaymentech.com.

Contacts

Chase Paymentech
Paul Hartwick, 302-282-3961
paul.hartwick@chase.com
Permalink: http://www.businesswire.com/news/home/20101116006933/en/Chase-Paymentech-Launches-Annual-Cyber-Holiday-Pulse


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WEBROOT RELEASES ANNUAL HOLIDAY CYBERSECURITY SURVEY

Image representing Webroot Software as depicte...Image via CrunchBase

Shoppers plan to buy more gifts online this year; some online habits hold steady while others worsen

Boulder, Colo., November 17, 2010 /PRNewswire/ — Webroot, the first Internet security service company, today released the results of a survey exploring consumers' online shopping habits leading up to the holidays.
In a survey of more than 2,660 individuals in the United States, the United Kingdom, and Australia, more than half (55 percent) of respondents say they plan to buy at least half of their gifts online this holiday season, up from 38 percent of shoppers last year. The survey also found that some of consumers' online habits — including using search engines and public WiFi for online gift-buying — may put them at risk.
Among the key findings:
  • Roughly the same number of shoppers plan to use search engines rather than going directly to a trusted site: 48 percent of online shoppers frequently if not always use search engines to find gifts online, compared to 52 percent in 2009
  • Trust in top search results, a target for malicious links, has grown: 59 percent of respondents who find gifts via search engines trust the first few pages of results, compared to 38 percent in 2009
  • Use of risky public WiFi has increased slightly: 18 percent are likely to use a public wireless access point to shop online for gifts, compared to 12 percent in 2009

Top 5 Tips for Staying Safe this Season

“This holiday season, we want to make it easy for people to buy gifts online safely,” said Jeff Horne, threat research director at Webroot. "Through our survey, we learned that one in seven respondents has already become a victim of credit, debit, or PayPal account fraud this year. In addition, 57 percent received phishing emails from bogus sources claiming to be a legitimate company — something we see rise around Black Friday and Cyber Monday. To end the year on a safe note, we urge all online shoppers to adopt some best practices before breaking out their holiday gift lists."
Horne recommends the following actions:
  1. Go straight to the site: Type a store's Web address directly into your browser instead of using a search engine to retrieve it. Cybercriminals plant malicious links that look like popular sites within the first few pages of search results. Unless you're using a security service that scans and classifies these sites as safe or unsafe for you, don't trust them.
  2. Be strict about passwords: Use a different password for each site on which you have an account; do not allow your browser to store passwords for you; and use a password manager instead of writing down passwords or storing them in a Word document in order to remember them.
  3. Look for the "signs of security": On sites where you're making a financial transaction, look for "https" in the address bar and a padlock icon in the browser Status Bar. On sites where the retailer uses extended SSL validation, look for the address bar to turn green on secured pages.
  4. Keep PayPal your pal: If you use PayPal, check the accounts that PayPal debits from frequently to quickly detect fraud. When using plastic, shop with a credit card instead of a debit card so you can stop payments immediately if you suspect fraud.
  5. Watch for seasonal scams: Be wary of spam emails claiming to be shipping confirmation or undeliverable package alerts that require you to open an attachment. Delete any message that claims to contain tracking information, but which lacks a tracking number in either the subject or body of the message. The safest way to track a package is through the shipper's Web site, or the online store where you made the purchase.

Additional Survey Findings:

Password Practices:
  • Only 37 percent of respondents use unique passwords for each password-protected site where they shop
  • More than a quarter (26 percent) of respondents reported someone else sent friends a message in their name using their social network, IM, or email account (implying a compromised password)
  • On a positive note, 72 percent use complex passwords, (mix of letters, numbers and symbols)
  • 62 percent also do not save their passwords in the browser
Secure Site Sensibility:
  • 52 percent of respondents do not check for an https connection before making purchases
  • And 50 percent do not check for the padlock in the browser's Status Bar before making purchases
  • When shopping online, more than half (52 percent) only purchase from sites with some form of trust certification, such as those issued by BBB or VeriSign
WiFi Weaknesses:
  • 18 percent of respondents are likely to use a public wireless access point to shop online for gifts
  • 23 percent feel completely safe shopping over a free public wireless connection
Regional Differences:
  • A higher share of UK holiday shoppers prefer buying gifts online: 64 percent versus 51 percent in the US and 34 percent in Australia
  • UK respondents were also more likely to use complex passwords: 77 percent versus 71 percent in the US and 63 percent in Australia
  • US respondents make it a rule more often only to use credit cards for online shopping: 54 percent versus 48 percent in the UK and 39 percent in Australia
For information about antispyware and antivirus products to help secure holiday online shoppers, please visit http://www.webroot.com.

About the Research

An online survey of consumers in the United States, United Kingdom and Australia was fielded November 5 through November 7, 2010 by ResearchNow. Respondents qualified for the survey if they own a computer or laptop, made at least one purchase online in the past year, and plan to purchase holiday gifts this year (online or retail). At the 95 percent confidence level the margin of error is ±1.9 percentage points for the full sample of 2,663 respondents, ±3.0 points for the US sample of 1,093, ±3.0 points for the UK sample of 1,046, and ±4.3 points for the Australian sample of 524.

About Webroot

Webroot is a leading provider of Internet security for consumers and businesses worldwide. Founded in 1997, privately held Webroot is headquartered in Colorado and employs more than 470 people globally in operations across North America, Europe and the Asia Pacific region. Consistently rated among the best security offerings available, Webroot's products include email, Web and archiving security services for businesses, and anti-malware, privacy and identity protection for consumers. For more information, visithttp://www.webroot.com or call 800.772.9383. Read the Webroot Threat Blog: http://blog.webroot.com. Follow Webroot on Twitter: http://twitter.com/webroot.
©2010 Webroot Software, Inc. All rights reserved. Webroot is a trademark or registered trademark of Webroot Software, Inc. in the United States and other countries. All other trademarks are properties of their respective owners.

Media Contact:

MacLean Guthrie
720-842-3164


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78% of Bank Customers Opt-Out of Debit Card Overdraft Protection

Debit CardImage by Neil T via Flickr

Consumer Reports Poll: Only 22 Percent of Bank Customers Have Opted-In for Debit Card Overdraft 'Protection'


 
Large Majority of Consumers Want Right to Choose Whether to Be Covered by Fee-Based Overdraft Programs for Checks
WASHINGTON, Nov. 16, 2010 /PRNewswire-USNewswire/ -- Two months after new federal regulations started requiring banks to get their customers' permission before signing them up for costly debit card overdraft programs, a national poll by the Consumer Reports National Research Center has found that only one-fifth of consumers holding an ATM or debit card have chosen to opt-in.
The poll found that 22 percent have signed up to have their ATM/debit card transactions covered for a fee if they don't have enough money in their checking accounts to cover them. A large majority of poll respondents said they wanted the same right to choose whether to be covered by fee-based overdraft programs for check transactions.
"Now that banks are no longer allowed to automatically enroll customers into high-cost debit overdraft loan programs, the vast majority of consumers are saying 'no thanks,'" said Pam Banks, Senior Policy Counsel for Consumers Union, the nonprofit publisher of Consumer Reports. "Consumers shouldn't opt-in to high-cost overdraft loan programs because there are more affordable options available when checking account funds fall short. Bank customers should have the same right to choose when it comes to overdraft programs covering checks."
Of those consumers who signed up to have debit card or ATM transactions covered for a fee, the poll revealed that 55 percent had experienced an overdraft in the past six months.
This finding is not surprising given the aggressive and oftentimes misleading "opt-in" marketing tactics many banks target at customers who overdraw their accounts. These marketing materials often drive customers to high-cost coverage while failing to market cheaper alternatives.
Thirty-nine percent of those who had overdrafted their account in the past six months chose not to sign up for such coverage.
Seventy percent of consumers responding to the Consumer Reports poll said they would like to have the choice when it comes to whether their bank covers the checks they write for a fee when they do not have enough money in their accounts to cover them. About half of these respondents – or 47 percent – indicated that they would select this option. Over one-third – or 38 percent – said they would decline to do so.
Consumers Union noted that there are cheaper alternatives for consumers when it comes to covering overdrafts triggered by debit cards or checks. Most banks allow customers to link checking accounts to a savings account, credit card, or a line of credit. When an overdraft occurs, the bank will automatically transfer money to cover the transaction from the linked account. The FDIC has concluded that the fees assessed for these other types of programs are significantly lower than for automatic overdraft loan programs.
The fact that customers who opted in are more likely than not to have recently overdrawn their debit card accounts confirms that many customers remain exposed to excessive overdraft fees and unfair practices, and underscores the need for meaningful substantive reforms.
The FDIC is currently considering a proposed guidance on overdraft programs for small state chartered banks that recommends that consumers be given the right to "opt-out" of overdraft coverage for paper checks and electronic payments. Consumers Union and other consumer groups have urged the FDIC to go further and require banks to get their customers' permission before charging fees for such coverage. The groups also recommended that consumers who want overdraft protection should be offered the least expensive form of overdraft coverage for which they qualify.
A federal judge in California recently ruled that Wells Fargo gouged consumers by manipulating the order it processed transactions, which triggered more overdrafts and generated more costly fees. The FDIC's proposed guidance would put an end to this practice for the state-chartered banks it supervises. Consumer groups recently urged the Office of the Comptroller of the Currency to take similar action with respect to the banks it supervises and to require banks to offer consumers the lowest cost overdraft option available to them.
The Consumer Reports National Research Center conducted a telephone survey of a nationally representative probability sample of telephone households. 1,014 interviews were complete among adults aged 18 or over. Interviewing took place overSeptember 30-October 3, 2010.
SOURCE Consumer Reports

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Watch out for the Grinch Come Cyber Monday: Five Online ‘Don’ts’ from AVG Technologies

AMSTERDAM & NEW YORK--(BUSINESS WIRE)--In 2009, online spending during Cyber Monday equaled $887 million and more than half of those dollars were spent at U.S. websites1. As more consumers are expected to take advantage of online sales come this year’s Cyber Monday on November 29, AVG Technologies is cautioning consumers to avoid Internet security pitfalls where cyber criminals can steal or compromise personal data.
“These ‘don’ts’ are rooted in common sense, however, many Americans continue to become victims of credit and debit card fraud and identity theft year-over-year”
According to Javelin Strategy & Research, the number of U.S. identity fraud victims rose 12 percent to 11.1 million adults last year—the highest level since the survey began in 2003.2 With this in mind, AVG’s chief research officer, Roger Thompson, recommends the following five ‘don’ts’ that will help people protect their identity while shopping online this holiday season:
Tis the season for giving, but don’t give away your personal data:
There is no reason to disclose your address, phone number and credit card information if you are trying to get something for free via the Internet. Never respond to emails that request you provide your credit card info via email, and do not respond to emails that ask you to go to a website to verify personal (and credit card) information—also known as phishing scams. Your dedicated shopping email account should be in no way affiliated with your personal, everyday email account.
Don’t let your antivirus security software expire:
A first step for all consumers is to ensure their PCs or Macs are protected and updated with the latest anti-malware technology, specifically making sure browser security enhancements are configured and enabled in antivirus software. To use the free version of AVG 2011, which has all of the core advancements of security protection, consumers can visit www.free.avg.com.
Don't settle for the top results of your search:
Advertisers and marketers work diligently to place their tricky deals to the very top of search results, hoping you will assume the results on top are the best. If you decide to scope out whatever pops up first, be extra careful and use common sense.
Don’t become password complacent:
As the end of the year approaches, do not rely on the familiarity of your current passwords and switch up your passwords on your credit card and bank accounts. Refresh email accounts with an updated, unique password. Write them down and keep the information in a secure location.
Don’t use multiple credit cards:
It is much easier to track transactions and detect suspicious activity if you limit the number of credit cards you use to one or two. Make sure each card offers identify theft protection. Also, keep records of your online shopping – print confirmation pages and email confirmations.
“These ‘don’ts’ are rooted in common sense, however, many Americans continue to become victims of credit and debit card fraud and identity theft year-over-year,” said Roger Thompson. “As Thanksgiving fast approaches and shoppers begin to let go of their wallets, AVG urges consumers to practice heightened vigilance and take necessary security steps while shopping online.”
Keep in touch with AVG
About AVG Technologies
AVG is a global security software maker protecting more than 110 million consumers and small businesses in 170 countries from the ever-growing incidence of Web threats, viruses, spam, cyber-scams and hackers on the Internet. AVG has nearly two decades of experience in combating cyber crime and one of the most advanced laboratories for detecting, pre-empting and combating Web-borne threats from around the world. Its free, downloadable software allows novice users to have basic anti-virus protection and then easily upgrade to greater levels of safety and defense when they are ready. AVG has nearly 6,000 resellers, partners and distributors globally including Amazon.com, CNET, Cisco, Ingram Micro, Play.com, Wal-Mart, and Yahoo!
1 Source: National Retail Federation, October 2010
2 Source: Javelin Strategy & Research, "Identity Fraud Survey Report," February 2010


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