Ingenico to buy Hypercom US payments system business

Ingenico to buy Hypercom US payments system business

French eftpos outfit Ingenico has agreed a $54 million cash deal to buy the US payments system business of Hypercom.

Hypercom is in the process of being acquired by another US player, VeriFone, which signed a $485 million, all-stock, definitive takeover agreement in November.

However, VeriFone's interest is in Hypercom's European operations, paving the way for Ingenico to boost its presence in the US by taking on that part of the business. The European firm will complete the acquisition immediately before the VeriFone-Hypercom deal closes in the second half of this year.

Ingenico says the transaction will significantly increase its presence in the banking channel in the US, particularly through the independent sales organisation community.

To help integrate the businesses, it is sending veteran executive Thierry Denis to the US as president for North America

Philippe Lazare, CEO, Ingenico, says: The acquisition of Hypercom US business is a major step in our strategic development notably aimed at accelerating the adoption of contactless NFC technology. This will enable us to accelerate our presence in the US through a promising combination of innovative product offers, expertise and extensive customer base."

In December Ingenico itself rejected a EUR1.44 billion takeover offer from US firm Danaher. The rebuff was welcomed by French government officials, who have declared that a sale of the Chip and PIN device manufacturer to a foreign bidder would run counter to strategic national interests.

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