Trintech sells payment systems business to Verifone
14 August, 2006
category: Contactless, Financial
Ireland-based Trintech is selling its payment systems business to Verifone for US$12 million. Trintech’s line is focused on unattended and outdoor solutions such as pay-at-the-pump, vending, and other self-serve environments. Trintech will continue to focus on its software products related to transaction processing and management.
VeriFone to Acquire Trintech’s Payment Systems Business
SAN JOSE, CA/DUBLIN, Ireland – August 14, 2006 – VeriFone Holdings, Inc. (NYSE:PAY), today announced that it has agreed to acquire the payment systems business of Trintech Group PLC (NASDAQ:TTPA) in an all-cash transaction. Trintech’s unattended and outdoor payment systems will enhance VeriFone’s solutions in the growing 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 optimize 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 software. The acquisition of Trintech’s payment business and its 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 Chief Executive Officer, 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 $12.1 million 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 Wednesday 23rd August, 2006.
William Blair & Company, L.L.C. and Ion Equity acted as financial advisors to Trintech Group PLC. Financial Technology Partners LP and FTP Securities LLC (together “FT Partners”) acted as financial advisor to VeriFone.
About Trintech Group
Trintech Group is a leading provider of transaction reconciliation and payment infrastructure solutions to retailers, financial institutions, payment processors and network operators globally. Built on 19 years of experience, Trintech’s solutions manage each area of the payment transaction cycle from authentication, authorization, settlement, dispute resolution and reconciliation – enabling its customers to reduce transaction costs, eliminate fraud, minimize risk, maximize cashflow and increase profitability. Trintech can be contacted in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: +353 1 2074000), in the US at 15851 Dallas Parkway, Suite 855, Addison, TX 75001 (Tel: +1 972 701 9802), in Uruguay at Technology & Business Park, Zona America – Ruta 8 Km. 17.500, Of. 006 – Local 310, ZIP 91.600, Montevideo (Tel: + 598 2 518 2250), and in the UK at The Colonnades, Beaconsfield Close, Hatfield, Hertfordshire, AL10 8YD (Tel: +44 1707 632900).
About VeriFone Holdings, Inc. (www.verifone.com)
VeriFone Holdings, Inc. (“VeriFone”) (NYSE: PAY), a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow. VeriFone delivers solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. VeriFone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare.
