VeriFone Systems Inc said it will purchase Stockhom-based Point from Nordic Capital Fund V for about 600 million euros ($824.1 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 $260 million in sales.J.P. Morgan, Bank of America Merrill Lynch, Wells Fargo Bank, Barclays Capital, and RBC Capital Markets have committed $1.6 billion to finance the deal.
VeriFone Systems, Inc. (VeriFone), formerly VeriFone Holdings, Inc. Shares of PAY traded higher by 0.37% or $0.15/share to $40.79. In the past year, the shares have traded as low as $27.15 and as high as $58.88. On average, 2977400 shares of PAY exchange hands on a given day and today's volume is recorded at 1643424.
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