VeriFone Systems, Inc. (PAY) recently completed the acquisition of South African based Destiny Electronic Commerce Ltd.
Headquartered in Johannesburg with offices in Cape Town and Durban, Destiny Electronic Commerce provides secure payment technologies, services and solutions at the point of sale for Sub-Saharan Africa and the Indian Ocean Islands.
With this acquisition, management expects to expand its footprint in South Africa, which has sound growth prospects backed by exceptional infrastructure. VeriFone stated that the acquisition will provide an opportunity to the company to expand in a potential $100 million market. Further, Destiny’s management team, headed by former CEO Llewellyn Walters, and 160 employees have already been integrated into the company.
With the economy recovering, revenue growth at Verifone should accelerate in fiscal 2011.
In November 2010, VeriFone announced that it would acquire rival Hypercom Corporation, which had established itself in a number of important European markets. VeriFone announced that it would acquire its rival Hypercom Corporation (HYC) for approximately $7.32 per share or $485 million.
The transaction is expected to close in the second half of 2011 and is anticipated to be accretive to VeriFone during the first twelve months of combined operations, excluding one-time costs.
The company expects to expand its operations in Continental Europe by leveraging Hypercom’s position in European markets. Furthermore, VeriFone had declared earlier that the acquisition would eliminate product overlap, administrative costs and sales expenses in many markets, which would ultimately drive significant operating synergies.
Based in San Jose, California, VeriFone provides solutions for electronic payment systems for the financial, retail, hospitality, petroleum, transportation, government and health care vertical markets.
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