Hewlett-Packard Buys VeriFone
Hewlett-Packard Co., has agreed to acquire VeriFone, Inc., in a stock swap worth $1.18 billion. The companies plan to integrate VeriFone's payment and chip card technology into HP's hardware, which includes PCs and keyboards. VeriFone will operate as an independent unit of HP.
HP said the proposed acquisition would combine its strength as the second-largest US-based computer equipment company with VeriFone's leadership in electronic commerce. VeriFone stockholders will receive one HP share for each VeriFone share.
VeriFone, which was founded in 1981 and pioneered automated credit card transaction systems, has recently expanded to include conducting business over the Internet and using "smart card" products for the home.
Just last week, Citicorp Citibank said it will launch a pilot program with VeriFone to test smart card use that will allow customers to download funds onto smart cards using its devices in their home or office.
HP said the two companies' technologies complement each other, with HP's focus on Internet security technologies and major corporate markets, including its broad distribution channels, melding with VeriFone's expertise in moving money. The companies' relationship includes providing products for the Visa/MasterCard Secure Electronic Transaction protocol, which is being rolled out this year, for secure credit card payments over the Internet.
Source: Reuters Limited.
