Verifone Holdings, Inc. (NYSE: PAY) today announced that it has signed an agreement to become the lead investor in a Series B financing of Semtek Corporation, and has doubled its investment in the security technology developer and acquired an option at a future date to purchase the remaining shares in Semtek.
Additionally, Verifone and Semtek have entered into an expanded, worldwide distribution agreement which provides for open-licensing of the Semtek encryption technology to all other point of sale hardware vendors.
Semtek is the developer of encryption technology that is the core element of Verifone’s VeriShield Protect end-to-end encryption solution for securing cardholder data. Based on the AES standard, Semtek’s technology ensures that the encrypted card data can be used by a typical point-of-sale software system without any modifications or disruption.
In September, Verifone entered into a marketing agreement with RBS Worldpay to make VeriShield Protect a preferred security platform for RBS customers and is currently negotiating similar arrangements with other payment processors. Additionally, several national retailers have recently selected VeriShield Protect as the platform of choice for fixed-format encryption of credit card data in their enterprises.
"We are very pleased with our growing relationship and look forward to continued success and market traction,” said Verifone CEO Douglas G. Bergeron.
Semtek CEO Patrick Hazel said: "We are delighted to complete this latest round of funding with Verifone, Venrock Capital, and RRE Ventures. Our newly expanded relationship with Verifone will accelerate the worldwide adoption of our technology, which is rapidly becoming the global standard for payment card encryption."
Semtek Corporation has been a leader in magnetics technology since 1999, serving large public and private sector clients who require secure data capture components for their fixed-base and wireless devices. Since 2004, Semtek has been focused on resolving the security deficiencies of magnetic stripe based payment systems and is playing an increasingly central role in the development of end to end security architectures for merchants and payment processors.
About Verifone Holdings, Inc.(www.verifone.com)
Verifone Holdings, Inc. (“Verifone”) (NYSE: PAY) 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
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on 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 Holdings, Inc. These risks and uncertainties include: our ability to accelerate the market adoption of the VeriShield Protect end-to-end encryption solution, our customers' acceptance and adoption of our newly released products and applications, 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.