Los Angeles-based buyout firm Gores Group, will acquire the United States operations of Hypercom Corp. Terms of the deal were not released. Hypercom provides electronic payment and transaction devices and services to retail and banking industries customers.
The Gores Group, a leading Los Angles based private equity firm, today announced that through an affiliate it has agreed to acquire the United States operations of Hypercom Corporation. Terms of the transaction, which were the result of a pending merger between Hypercom and VeriFone Systems, Inc., were not disclosed.
The acquired company provides electronic payment and transaction devices and value-added services at the point of transaction to thousands of retail and banking industries customers in the United States. Its products provide secure payment authorization, certified at the highest industry standards, and are supported by an industry leading engineering team.
Clint Jones, named President of the acquired company, stated, “We are focused on meeting and exceeding the high expectations of our customers, and delivering on the superior quality, service and reputation developed under Hypercom. The Gores Group has a reputation for successfully completing acquisitions and operating corporate carve-outs such as this, and we expect this to be a smooth transition. The fact that they have previous experience in the point-of-sale products industry will be of great value to our customers and employees moving forward.”
“We think this a great business with tremendous assets, and we are very pleased to add it to our portfolio of companies,” stated Victor Otley, Managing Director for The Gores Group. “The Gores Group is committed to the success and growth of this business and we will provide the operational and financial support necessary to successfully grow the business.”
Commenting on upcoming events for the company, Jones added, “We plan on rolling out the world’s most advanced multilane POS solutions throughout the remainder of 2011, to be followed by a suite of world class products for countertop and banking. Additional information about future plans for the company will be disclosed in the coming weeks.”
About The Gores Group, LLC
The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm’s current private equity fund has committed equity capital of more than $4 billion. Headquartered in Los Angeles, The Gores Group maintains offices in Boulder, CO, and London.