VeriFone to buy Stockhom-based Point for $824.1 mn

The transaction is expected to close by the end of 2011.

Updated: Nov 14, 2011, 13:34 PM IST

New Delhi: VeriFone Systems Inc said it will buy Stockhom-based Point from Nordic Capital Fund V for about 600 million euros (USD824.1 million) with the aim of creating the world's largest infrastructure for rapid deployment of alternative payments.

The credit card swipe machine maker will also retire 170 million euros in debt from Point at closing. The transaction is expected to close by the end of 2011.

The deal will add to VeriFone's adjusted earnings by 8-10 cents per share in 2012 and 30-35 cents per share in 2013.

VeriFone said the deal will immediately add to its gross margins, operating margins and growth rates and added that the acquisition will add about USD260 million in sales.

J.P. Morgan, Bank of America Merrill Lynch, Wells Fargo Bank, Barclays Capital, and RBC Capital Markets have committed USD1.6 billion to finance the deal.

Bureau Report