Back to top

Analyst Blog

VeriFone Systems, Inc. (PAY - Analyst Report) recently announced an agreement with ANZ Bank New Zealand Limited to acquire EFTPOS New Zealand Limited (ENZ).

In addition, VeriFone will also take over Sektor Payments operation from the Sektor Group of New Zealand.
These acquisitions resent an opportunity to VeriFone to expand into New Zealand with its broad range of payment solutions and managed services, leveraging its Point payments-as-a-service platform. 
Meanwhile, ENZ will continue to operate under its existing brand name, EFTPOS New Zealand, but as a VeriFone company. 
Being the largest EFTPOS solutions and payments provider in New Zealand, ENZ serves more than 40,000 merchant customers and offers end-to-end payment solution to customers, including card acceptance devices, software, services and processing.
On the other hand, Sektor Payments will operate as VeriFone New Zealand and will be the sole VeriFone distributor in New Zealand, empowered with the largest reseller network that provides VeriFone payment solutions to merchants.
The acquisition will strengthen VeriFone’s presence in the New Zealand market. VeriFone designs system solutions that facilitate the long-term shift toward electronic payment transactions from cash and checks. 
Growth rates for electronic payment solution systems have been higher in international markets, primarily due to the relatively low penetration rate of electronic payment transactions in many regions, like Eastern Europe, Latin America and Asia. Consequently, in order to establish a footprint in key growing markets, VeriFone continues to make strategic acquisitions. 
Competition continues to be stiff from the likes of NCR Corp. (NCR - Analyst Report), which recently acquired Retalix Ltd. approximately $650 million. Organic growth also remains a matter of concern. 
Hence, we maintain our Neutral recommendation post the fourth quarter results, which missed the estimates by a penny leading to a significant fall in share price. 
We currently have a Zacks #4 Rank, which translates into a short-term rating of Sell due to near-term pressure on the stock. 

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%