Gores Technology Group, which specializes in acquiring high-tech organizations and managing them for growth and profitability, has, to date, acquired approximately 35 companies providing high-tech services and products to millions of customers worldwide with annual revenues in the aggregate of over $2 billion.
VeriFone is a great addition to the GTG portfolio of companies, said Alec Gores, Founder and Chairman of Gores Technology Group. We look at this acquisition as a long-term strategic investment. The company has tremendous potential. It is the global leader in an industry that we believe is going to continue experiencing significant growth.
Doug Bergeron, Group President at Gores Technology Group, added, We are confident that, working with VeriFone management, we can capitalize on its strengths and maximize its potential for growth. VeriFone has solid channel, partner and certification relationships and is already well-established in key vertical segments such as financial retail, petroleum/convenience store, multi-lane retail, and government-education-medical.
Pierre-Francois Catte, general manager of VeriFone, emphasized that the parties are working to ensure that the acquisition by GTG would not result in any disruptions of service, product shipments, or changes in the business relationships with VeriFone’s partners and customers. He also emphasized that VeriFone plans to keep all of its existing employees in its current ongoing operations. VeriFone could not have asked for a better company to pair-up with for the future, he said. Gores Technology Group has an outstanding reputation for achieving positive results by empowering management and employees to effectively and efficiently improve performance and supporting growth through investment and acquisition. We consider this a return to VeriFone’s roots as a nimble, entrepreneurial, stand-alone technology company with the freedom to innovate and grow.
Mr. Bergeron said that VeriFone’s newest payment hardware and software meets the highest security and performance standards for customers using the Europay, Mastercard, and Visa (EMV) standard for smart card transactions. VeriFone has established the groundwork for the long-awaited growth of smart cards in the United States, Mr. Bergeron said. The company has staked its claim to future payment markets by taking a lead in emerging smart card and mobile commerce technologies. We believe its best years are yet to come.
John Brennan, HP vice president, Strategy and Corporate Development, indicated that the divestiture of VeriFone will allow HP to continue to sharpen its focus and refine its portfolio of businesses. This move will enable HP to put greater focus on core competencies related to service-centric computing and providing solutions for an always-on Internet infrastructure, he said. HP’s investment in VeriFone’s technology leadership positively positions VeriFone for the future.
The completion of the transaction is subject to regulatory approvals and other customary conditions.
