VeriFone US acquisition to add to Israeli workforce
Secure electronic payment solutions developer VeriFone Holdings Inc. (Nasdaq: PAY) will acquire Hypercom Corporation (NYSE: HYC), a developer of high security electronic payment and digital transactions solutions, for $485 million in shares, after originally offering $290 million in cash in late September.
Hypercom shareholders will receive a fixed ratio of 0.23 shares of VeriFone shares for each Hypercom share they own. The price reflects a 19% premium on Hypercom's share price before yesterday's rise of 16.3%. VeriFone's share price rose 3.4%.
In 2006, VeriFone acquired Rosh Ha'Ayin-based Lipman Electronics Engineering Ltd., at a company value of $793 million. VeriFone currently has 400 employees at the Rosh Ha'Ayin development center, after outsourcing the manufacturing operations to Sanmina-SCI Corporation (Nasdaq: SANM). The Israeli offices are responsible for VeriFone's business in Europe and Asia.
VeriFone Israel president Lazy Yanay told "Globes", "The acquisition could increase our workforce, because we'll have to expand our offices to accommodate command and control, marketing money, etc."
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