SCOTTSDALE, Ariz. & RESTON, Va.--(BUSINESS WIRE)--Hypercom Corporation (NYSE: HYC) and The McDonnell Group today announced that they have completed the formation of the joint venture previously announced in the December 2009 Letter of Intent between the two companies. The transaction closed on February 17, and the newly formed joint venture, Phoenix Managed Networks, will equip payment processors, banks and retailers worldwide with highly reliable and cost-effective data communications services for transaction-based applications.
“We are providing a focused, world-class alternative for companies that are clearly seeking best-in-class solutions to their transaction transport needs, and we are doing it with a management team that is second to none. We believe this new joint venture led by Jack McDonnell will significantly enhance our ability to expand market share and deliver strong returns for Hypercom’s shareholders and business partners,” said Philippe Tartavull, Chief Executive Officer and President, Hypercom Corporation.
“We are signing up new customers, demand is substantial, and we are moving quickly to seize growth opportunities in North America, Europe, Australia and New Zealand,” said Jack McDonnell, Chief Executive Officer of Phoenix Managed Networks, Managing Member of The McDonnell Group, and former Chairman and CEO of Transaction Network Services, Inc. “We are bringing state-of-the-art, reliable and cost-effective transaction communications services to the payments industry, and we will aggressively expand the international business Hypercom established with HBNet.”
Under the joint venture arrangement, Phoenix Managed Networks has acquired and will operate Hypercom’s HBNet secure transaction transport business. Former TNS executive Matthew Mudd has joined the joint venture’s management team as President and Chief Operating Officer. Thirteen HBNET network operators and staff have transitioned to the joint venture. While financial details will remain undisclosed, The McDonnell Group has acquired a majority interest in the joint venture and will be responsible for its day-to-day operations. Hypercom remains a significant shareholder in the business.
Phoenix Managed Networks utilizes Hypercom’s HBNet network to speed the authorization and processing of electronic transactions for retail point-of-sale, financial, government, health care and other customers in dial, wireless and IP POS markets. In addition, the company will utilize Hypercom’s SmartPay gateway technology to support wireless and IP-initiated transactions.
HBNet is powered by robust, ultra high-density Hypercom technology strategically positioned within the North American Public Switching Telephone Network (PSTN) and at processor data centers. It supports all POS terminal protocols, provides uninterrupted service with no single point of failure, seamless load balancing, state-of-the-art Web-based reporting and simple all-inclusive pricing.
About The McDonnell Group
The McDonnell Group LLC is a technology-focused investment fund managed by Jack McDonnell. Companies financed by The McDonnell Group include Transaction Network Services (NYSE:TNS); PaylinX, acquired by CyberSource (Nasdaq: CYBS); ExaDigm; Ecutel Systems, acquired by Smith Micro Software (Nasdaq:SMSI); webMethods (Nasdaq:WEBM), acquired by Software AG (FSE:SOW); LifeLinkMD, acquired by Medtronic (NYSE:MDT); Core Communications, acquired by Swisscom (NYSE:SCM); and BizTelOne, acquired by NeuStar (NYSE:NSR).
About Hypercom (www.hypercom.com)
Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products and services. The Company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA) and is the second largest provider of electronic payment solutions and services in Western Europe and third largest provider globally.
