Trintech Group’s payment systems business is to be acquired by VeriFone Holdings in an all-cash transaction worth US$12.1m.
The deal will see Trintech’s unattended and outdoor payment systems adding to VeriFone’s services in the markets for self-service payment, vending and pay-at-the-pump applications.
The acquisition includes a range of payment systems that will support and extend VeriFone’s existing offerings for merchants and financial institutions. VeriFone will take over distribution of those products and will provide existing customers with service and support.
Trintech is divesting its payment systems business to concentrate on its transaction-reconciliation software products and services, which allow customers to optimise enterprise funds management performance, including transaction verification, account reconciliation, process management and compliance.
“The acquisition continues VeriFone’s expansion into new growth markets,” said VeriFone chairman and CEO Douglas G Bergeron. “Trintech built a track record of innovation and leadership in unattended payment systems and EFT [electronic funds transfer] software. The acquisition of Trintech’s payments business and their strong customer relationships will further enhance VeriFone’s leadership in the growing and ever-changing electronic payments business.”
“We are confident that the acquisition of our payment systems business by VeriFone is a strong fit with VeriFone’s global position in the secure electronic payment technologies marketplace,” said Trintech chairman and CEO Cyril McGuire. “Trintech is reinforcing its strategic focus on its core competence in the funds management business. This strategic sale is designed to allow Trintech to aggressively expand its transaction-reconciliation software business globally, servicing customers in the commercial, financial and healthcare markets.”
Under the terms of the agreement, VeriFone will pay Trintech US$12.1m cash for all of the outstanding shares of a newly formed subsidiary which, prior to closing, will hold substantially all of the assets and liabilities of the payment systems business of Trintech.
The purchase price is subject to adjustment based on the working capital of the business and other accruals at the closing date. Trintech’s board of directors has approved the sale, which is subject to customary closing conditions and is expected to close by the end of August 2006.
Trintech will provide further information on this transaction on its next quarterly earnings call scheduled for 23 August.
William Blair & Company, L.L.C. and Ion Equity acted as financial advisors to Trintech Group. Financial Technology Partners LP and FTP Securities LLC (together FT Partners) acted as financial advisor to VeriFone.
By Niall Byrne