VeriFone Acquires Swedish Gateway Provider
Nov. 17, 2011
VeriFone Systems, Inc. has signed a definitive agreement with Nordic Capital Fund V to acquire Point, Northern Europe’s largest provider of payment and gateway services for retailers. VeriFone will pay approximately €600 million ($810.3 million) to acquire all of the equity of Point and will also retire at closing existing Point debt of approximately €170 million ($229.6 million). The San Jose, Calif.-based company said it intends to expand the Point platform geographically with the aim of “creating the world’s largest infrastructure for rapid deployment of alternative payments.” Point, based in Stockholm, has operations in 11 Northern European countries and serves nearly 475,000 merchants. In addition to POS technology and support, Point offers gateway services, card encryption services, and multi-channel e-commerce processing, but the company is also looking toward mobile and alternative payments, according to VeriFone CEO Douglas G. Bergeron. “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,” Bergeron said. The company said it expects the acquisition to close by the end of 2011 and that it will be accretive to non-GAAP earnings by $0.08 to $0.10 per fully diluted share in fiscal 2012 and $0.30 to $0.35 in fiscal 2013.