Verifone Pens New Distribution Agreement

California-based VeriFone Systems, Inc. (PAY - Analyst Report) recently announced a new direct distribution relationship for retailers, acquirers and processors in Germany, Italy, France, Spain, Austria and Switzerland. This new direct distribution agreement will enable organizations to obtain products, services, support and value-added solutions directly from VeriFone.

VerfiFone stated that this new distribution agreement will benefit retailers from a direct sales and support relationship point of view with VeriFone as previously these retailers were limited to the portfolios that local distributors chose to sell and support.

Meanwhile, VeriFone continues to partner with Point International in Scandinavia and the Baltics, CCV in Benelux, Printec Group and Melon in the Balkans and Inpas in Russia. Management feels that retailers, acquirers and processors in these countries need access to broader product and services solutions which help them to meet the needs of their customers.

VeriFone provides solutions for electronic payment systems for the financial, retail, hospitality, petroleum, transportation, government and health care vertical markets. The recent acquisition of Hypercom has enabled VeriFone to field a workforce of more than 500 direct sales, support and engineering personnel on the ground in these countries.

VeriFone recently completed the acquisition of its competitor Hypercom Corp. Last year, VeriFone struck a deal to acquire Hypercom for approximately $7.32 per share or $485 million, including net debt assumed by VeriFone.

As a consequence of the merger, the company expects to expand its operations in Continental Europe by leveraging Hypercom’s position in the European markets.

Hypercom’s acquisition has enabled VeriFone to introduce this new direct sales model across continental Europe which in turn is expected to accelerate adoption of the company’s diverse systems and services. Currently, VeriFone is in discussions with resellers in Germany, Italy, Spain, France, Austria and Switzerland regarding ongoing support of existing merchants and the transition to direct VeriFone sales and services.

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