VeriFone to Acquire Point to Build out Alternative Payments Infrastructure
VeriFone Systems has signed a definitive agreement with Nordic Capital Fund V (Nordic Capital) to acquire Point, northern Europe’s largest provider of payment and gateway services and solutions for retailers. VeriFone intends to extend the Point platform throughout the region and beyond, with the aim of creating the world’s largest infrastructure for rapid deployment of alternative payments.
VeriFone will pay approximately €600m to acquire all of the equity of Point and will also retire at closing existing Point debt of approximately €170m. The acquisition is expected to close by the end of 2011, and is subject to customary closing conditions.
Point, based in Stockholm, has operations in 11 northern European countries and serves a captive network encompassing almost 475,000 merchant contracts. Through this network, Point offers retailers a full range of services and solutions, including point-of-sale (POS) technology and support, gateway services, card encryption services, and multi-channel e-commerce processing.
Douglas Bergeron, VeriFone chief executive officer (CEO), said: “We are delighted to welcome Point customers and Point employees to VeriFone. They have built a phenomenal business and we believe that the best is yet to come.”
Bergeron added: “For the past two years, we have been transforming our business to respond to the rapidly evolving needs of consumers, retailers, and payment innovators worldwide. Our vision is to offer retailers everywhere a managed service to easily accept all existing payment types, including the evolving alternative and mobile payment methods being offered by Google, PayPal, Groupon, Isis, Visa, MasterCard, and American Express. At the same time, we can increasingly offer the new payment entrants easy and accelerated access to our worldwide installation of more than 20 million merchant lanes.”