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May 13, 2011 10:00 AM Eastern Daylight Time
NFC Pioneer’s Approach Seeks to Ensure U.S. Market for Point-of-Sale Terminals Remains Competitive
SANTA CLARA, Calif.--(BUSINESS WIRE)--ViVOtech, the near field communication (NFC) software and systems company, today said it has renewed its approach to VeriFone Systems, Inc. (NYSE: PAY) to acquire the U.S. assets of Hypercom Corporation (NYSE: HYC).
“We can move quickly and have the experience, the track record, the management team, and the unanimous support of our investors to pursue this acquisition and make it successful”
ViVOtech CEO, Michael (Mick) Mullagh, said he hoped ViVOtech’s approach would provide a path to resolve Justice Department concerns that drove the filing of a civil antitrust lawsuit yesterday in federal district court that puts VeriFone’s deal to acquire Hypercom on ice.
VeriFone announced plans to buy Hypercom in November in an all-stock deal valued at $485 million. ViVOtech announced on March 31 that it had approached VeriFone to acquire the U.S. assets of Hypercom. On April 2 VeriFone said it would sell Hypercom’s U.S. assets to France’s Ingenico SA for $54 million in cash. Federal regulators yesterday said that was not enough to resolve antitrust concerns.
“We totally understand the DOJ’s concerns, because the cozy deal would essentially create a collaborative duopoly in this competitive market inhibiting choice and innovation, just as the NFC mobile commerce market is on the cusp of becoming reality,” said Mullagh. “We believe our renewed approach to VeriFone if executed, will be good for consumers and merchants, and perhaps more importantly, is in the best interest and benefit of VeriFone and Hypercom shareholders.”
At issue is NFC mobile commerce technology that allows consumers to use their mobile phones to make payments, and take advantage of real-time in-store personal marketing offers, merchandising campaigns, and loyalty programs at the point of sale. ViVOtech’s acquisition of the Hypercom U.S. assets would allow it to accelerate the adoption of this revolutionary new technology and ensure that a vigorous and competitive market emerges.
“We still see the acquisition of Hypercom’s U.S. assets as a strategic and transformative opportunity for our company to enhance next-generation NFC platforms, and accelerate the adoption of in-store mobile payment, loyalty, marketing and merchandising solutions in the U.S.,” said Mullagh. “We are also the company that is in the best position to support and provide continuity to Hypercom’s customers and to become a strong, viable third competitor maintaining a highly competitive market.”
ViVOtech is well capitalized and has been strongly supported by a broad base of financial and strategic investors. The company has retained Morgan Keegan and Wilson Sonsini Goodrich & Rosati to assist in the acquisition of the Hypercom assets.
“We can move quickly and have the experience, the track record, the management team, and the unanimous support of our investors to pursue this acquisition and make it successful,” said Mullagh.
About ViVOtech
ViVOtech, the near field communication (NFC) software and systems company, enables rich mobile commerce solutions for in-store payment, loyalty, marketing, and merchandising. Merchant, payment, mobile, web and advertising companies use ViVOtech solutions to enhance customer experience and grow their business. ViVOtech’s NFC software and systems are the broadest, most tested and deployed worldwide. Founded in 2001, Silicon Valley-based ViVOtech provides the key building blocks of the NFC ecosystem: smart applications for enhancing the customer experience, wallet and trusted service manager, (TSM) software, and point-of-sale systems. ViVOtech’s investors include Alloy Ventures, Citigroup, Draper Fisher Jurveston, First Data Corporation, Motorola Ventures, Nokia Growth Partners, NCR, and Sprint. Join the NFC revolution at http://www.ViVOtech.com.
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