Verifone Systems, Inc. (NYSE: PAY), announced today that it has accelerated its efforts to deliver end-to-end encryption solutions with the acquisition of encryption leader Semtek. Verifone previously invested in Semtek’s equity funding. Semtek shareholders received Verifone common shares that valued the acquired company at $18 million.
The acquisition, effective immediately, enables Verifone to integrate the development, sales, implementation and support of end-to-end encryption solutions into the existing Verifone organization to better fulfill customer needs, increase revenue and enhance support. Additionally, Verifone is offering royalty-free software licenses to device manufacturers and payment processors to further spur market adoption.
“With increasing market demand for our VeriShield Protect end-to-end encryption solution, acquiring Semtek’s core encryption technology ensures we can more effectively ramp up to meet customer demands and foster industry-wide acceptance of this critically important component to securing payment transactions,” said Verifone Executive Vice President Bud Waller.
Verifone’s initial investment in Semtek was announced in October 2007. In April 2008, Verifone introduced VeriShield Protect, the first commercial offering of end-to-end encryption for payments, which incorporated Semtek technology.
VeriShield Protect has since been implemented across Verifone’s product line. The patented technology encrypts card holder information at the exact instant of acceptance, inside a secure, trusted device, and keeps that data encrypted throughout an enterprise, to ensure protection of information even in the event of a security breach.
Semtek will be absorbed into Verifone’s Integrated Systems organization.
About Verifone Systems, Inc. (www.verifone.com)
Verifone Systems, 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 for Verifone Systems, Inc.
This press release includes certain forward-looking statements related to Verifone Systems, Inc. within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Verifone 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 Systems, Inc. These risks and uncertainties include: Verifone’s ability to successfully integrate Semtek, customers’ acceptance and adoption of Verifone’s security solutions and other new product and service offerings, 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.