AAPL Stock: 117.81 ( -0.22 )

Printed from

US sues VeriFone to block buyout of rival Hypercom

updated 06:55 pm EDT, Thu May 12, 2011

Justice fears competition in POS market at risk

The US Department of Justice has filed a lawsuit seeking to block Verifone from gobbling up rival point-of-sale (POS) credit card information equipment vendor Hypercom. According to DOJ, the market is very concentrated. Verifone holds a 48 percent share of the US market, Hypercom, a 18 percent share, and French-based Ingenico 26 percent. Verifone had planned to sell off Hypercom's US operation to Ingenico, hoping that would pave the way for Governmental approval. However, the Justice department saw things differently.

The merger "exacerbates, rather than mitigates, the antitrust issues raised by the original transaction," said Christine Varney, head of the Department of Justice's Antitrust Division, in a statement. "The combination of VeriFone and Hypercom would likely lead to retailers paying higher prices for POS terminals."

The acquisition was announced last November. The $485 million deal was to be via a stock transaction.

Since the proposed merger, Verifone has come under increased pressure from NFC (Near Field Communications) devices and mobile payment systems such as those offered by start-up Square. Verifone attacked the security of Square's iOS and Android applications, but that assertion lost steam as VISA invested in Square. [via Reuters].

by MacNN Staff



Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented