Accelerating its strategic expansion into payment-enabled media, Verifone Holdings, Inc. (NYSE: PAY), today announced that it has acquired the Clear Channel Taxi Media business from Clear Channel Outdoor. The acquisition is not expected to be material to 2010 results. Financial terms were not disclosed.
Verifone intends to leverage this well-developed channel into Verifone's Media Solutions payment-enabled business, where in-taxi digital content is positioned to become one of the most innovative advertising venues as spending moves from traditional to online and digital place-based media.
"Verifone is delivering Internet-enabled, multi-media technologies at the point-of-sale," said Douglas G. Bergeron, CEO of Verifone. "As consumers shift to electronic transactions in taxicabs and other media-enabled locations, we have a unique ability to deliver dynamic and interactive campaigns with desirable and measurable advertising efficiencies. This is a very high value services opportunity."
The acquisition includes relationships with a nationwide network of taxi media buyers and more than 20 experienced media sales representatives. With the acquisition, Verifone has added an additional 5,000 taxicab advertising endpoints to its existing New York City network of 6,500 cabs.
Verifone's expanded media sales force can now sell advertising to local and national buyers with a reach of 90 percent of all New York taxi cabs. Presently, there are approximately 300,000 taxi fares a day in New York City.
Verifone Media Solutions now has sales representatives in Boston, Chicago, Las Vegas, Miami, New Orleans, New York City and San Francisco.
Clear Channel Outdoor entered the taxi advertising business in 2000, with a significant percentage of the business centered on sales of taxi top advertising. In 2007, Clear Channel Outdoor entered the market for in-taxi digital place-based media.
Additional Resources: www.verifone.com/media
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 for Verifone Holdings, Inc.
This press release includes certain forward-looking statements related to Verifone Holdings, 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 Holdings, Inc. These risks and uncertainties include: our ability to successfully integrate the operations of Clear Channel Taxi Media, LLC into Verifone's business; the ability of Verifone to successfully introduce and grow payment enabled media opportunities, our customers' acceptance and adoption of 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.