Verifone spends $70 mln on Eftpos acquisition in push into New Zealand
By Paul McBeth
June 6 (BusinessDesk) - VeriFone Systems, the New York Stock-exchange listed payments firm, spent $70 million to snap up ANZ New Zealand Bank’s eftpos terminal leasing unit as part of a bigger push into the local market.
The San Jose, California-based company completed the acquisition of Eftpos New Zealand this week, and disclosed the size of the deal in its first-half earnings result. The deal makes VeriFone the biggest eftpos solutions and payments provider in New Zealand, and follows its US$8.2 million acquisition of Sektor Group’s local payments operation in December.
The two deals “provide us with the software, services infrastructure and distribution resources necessary to serve New Zealand with both electronic payment solutions and managed services,” VeriFone said in its report.
VeriFone incorporated a local company in November last year, and holds an 18 percent stake in mobile financial services software maker, Mobilis Networks, via a Bermuda-based limited partnership, according to Companies Office records.
Earlier this week, Anthony Chalhoub, VeriFone Australia and New Zealand general manager, said the company’s local presence “reflects the importance and opportunities of the expanding electronic payments market in the country.”
The global payments firm reported a net loss of US$46.5 million in the six months ended April 30, with a 4.1 percent fall in sales to US$855 million. In March, long-serving VeriFone chief executive Douglas Bergeron stepped down a week after the company said it was looking at ways to address its declining revenues.
The shares dropped 4.9 percent to US$21.95 yesterday, and has shed 22 percent this year. The stock is rated an average ‘hold’ based on 18 analyst recommendations compiled by Reuters, with a median target price of US$24.