VeriFone Systems Inc. acquired WAY Systems Inc., a Boston, Mass.-based developer of point-of-sale solutions and gateway services for mobile merchants. The deal was valued at $9 million, including a potential payout of $3 million if certain performance targets are met. WAY Systems was founded in 2002. It received $50 million in equity investments from Austin Ventures and Bessemer Venture Partners as well as debt financing from Lighthouse Capital Partners.
VeriFone Systems, Inc. (PAY 25.49, +1.31, +5.42%) , today announced it has acquired the assets of WAY Systems, Inc, a pioneer in mobile POS solutions and gateway services for mobile merchants. The acquisition will not have a material impact on VeriFone’s financial results. The purchase price consisted of an upfront payment of $6 million dollars and an earn-out payable in one year of up to an additional $3 million dollars should certain performance targets be met.
Over the past five years, WAY has built up a customer base of more than 25,000 mobile merchants who use the company’s compact mobile POS technology and gateway services. VeriFone will immediately take over support of these merchants within its expanding PAYware Connect Gateway infrastructure. Additionally, VeriFone will offer continuous non-stop support for all existing WAY mobile systems, bolstered by VeriFone’s extensive mobile portfolio, including PAYware Mobile and VX Evolution secure payment systems.
WAY possesses substantial intellectual property and reseller relationships that will augment VeriFone’s mobile payment solutions strategy. The company was granted numerous patents in the U.S., Europe and China for a range of intellectual property, including the connection of a mag-stripe reader to a mobile phone, PDA or smartphone.
“We are delighted to add the WAY Systems customers and employees to the VeriFone family,” said Jeff Dumbrell, VeriFone executive vice president. “The intellectual property we are acquiring will significantly contribute to our vision of empowering wide scale adoption of mobile payments.”
WAY Systems was founded in 2002 with initial seed capital from Bill Melton, the founder of VeriFone. From 2004 through 2009, WAY received an additional $50 million in equity investments from Bessemer Venture Partners and Austin Ventures as well as debt financing from Lighthouse Capital Partners.
About VeriFone Systems, Inc. (www.verifone.com)
VeriFone Systems, Inc. (“VeriFone”) /quotes/comstock/13*!pay/quotes/nls/pay (PAY 25.49, +1.31, +5.42%) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for VeriFone Systems, Inc.
This press release includes certain forward-looking statements related to VeriFone Systems, Inc. within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on VeriFone management’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of VeriFone Systems, Inc. These risks and uncertainties include: our ability to successfully integrate the acquisition of Way Systems, customers’ acceptance and adoption of VeriFone solutions and other new product and service offerings, our ability to protect against fraud, the status of our relationship with and condition of third parties upon whom we rely in the conduct of our business, our dependence on a limited number of customers, uncertainties related to the conduct of our business internationally, our dependence on a limited number of key employees, short product cycles, rapidly changing technologies and maintaining competitive leadership position with respect to our payment solution offerings. For a further list and description of such risks and uncertainties, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. VeriFone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
SOURCE: VeriFone Systems, Inc.