Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, Hypercom shareholders will receive a fixed ratio of 0.23 shares of VeriFone common stock for each Hypercom share they own, valued at approximately $7.32 per share based on the closing price on 16 November 2010.
VeriFone will also assume Hypercom’s outstanding warrants and stock options in the transaction.
VeriFone CEO Douglas Bergeron said that the Hypercom has established itself in a number of important European markets, and this acquisition is an excellent and complementary way for VeriFone to accelerate its overseas growth, increase innovation and build value for our shareholders.
Hypercom president and CEO Philippe Tartavull said that combined, Hypercom and VeriFone will create new growth opportunities and further drive penetration in the market.
The transaction is subject to approval by Hypercom shareholders and customary regulatory approvals, and is anticipated to close in the second half of 2011.
