March 31, 2011 03:17 PM Eastern Daylight Time
SANTA CLARA, Calif.--(BUSINESS WIRE)- ViVOtech, the near field communication (NFC) software and systems company, today announced that it has approached VeriFone Systems, Inc. (NYSE: PAY) to acquire the U.S. assets of Hypercom Corporation (NYSE: HYC). VeriFone said in November it would divest Hypercom’s U.S. assets following its acquisition of the electronic payments company, which is expected to close in the second half of this year.
“NFC mobile commerce is on the cusp of becoming reality,” said Michael (Mick) Mullagh, ViVOtech CEO. “VIVOtech’s acquisition of the Hypercom U.S. assets would allow us to accelerate the adoption of this revolutionary new technology and ensure that a vigorous and competitive market emerges to drive innovation and choice.”
ViVOtech’s NFC software and systems are the broadest, most tested and deployed worldwide. VIVOtech provides the key building blocks of the NFC ecosystem: smart applications, wallet and provisioning software, and point of sale systems. To date, ViVOtech has shipped more than 800,000 contactless NFC readers. Through its direct and OEM channels VIVOtech has 80% share of U.S. deployments, including nearly 100% of VeriFone’s current U.S. contactless NFC reader deployments.
“We see this as a strategic and transformative opportunity for ViVOtech to enhance our next-generation NFC platform, and accelerate the adoption of in-store mobile payment, loyalty, marketing and merchandising solutions in the U.S.,” said Mullagh. “ViVOtech is the only U.S.-based company in a position to support and provide continuity to Hypercom’s customer base and become a strong, viable third competitor in the highly competitive U.S. market.”
ViVOtech believes the current payment and merchant ecosystem in the U.S. – including the customers and partners of the three leading providers, and emerging participants in the electronic and mobile payment market – will support ViVOtech’s acquisition of the Hypercom assets.
“We have the experience, the track record, the management team, and the unanimous support of our Board to pursue this acquisition and make it successful,” said Mullagh.
ViVOtech is well capitalized and has been strongly supported by a broad base of financial and strategic investors. The company has retained Morgan Keegan and Wilson Sonsini Goodrich & Rosati to assist in the evaluation of the Hypercom assets acquisition.
“We’re able to move quickly and help facilitate the regulatory approvals required to close the acquisition of Hypercom by VeriFone, and guarantee the emergence of a strong next generation NFC focused competitor in the US market,” said Mullagh.
ViVOtech, the near field communication (NFC) software and systems company, enables rich mobile commerce solutions for in-store payment, loyalty, marketing, and merchandising. Merchant, payment, mobile, web and advertising companies use ViVOtech solutions to enhance customer experience and grow their business. VIVOtech’s NFC software and systems are the broadest, most tested and deployed worldwide. Founded in 2001, Silicon Valley-based ViVOtech provides the key building blocks of the NFC ecosystem: smart applications, wallet and provisioning software, and point of sale systems. ViVOtech’s’ investors include Alloy Ventures, Citigroup, Draper Fisher Jurveston, First Data Corporation, Miven Ventures, Motorola Ventures, Nokia Growth Partners, NCR, and Sprint. Join the NFC revolution at http://www.ViVOtech.com.
Kristin Miller, (719) 634-8292
Kristin Miller, (719) 634-8292