Verifone Expands Services Offering for Large Retailers in the U.S. and Canada with Agreement to Acquire AJB Software
Enables delivery of an end-to-end solution with enhanced vertical functionality, from a single provider
Acquisition expected to close in Q2 FY16
NEW YORK (NRF Big Show 2016, Verifone Booth #3343 and AJB Booth #1563)—Jan. 15, 2016 – Verifone (NYSE: PAY) today announced it has signed an agreement to acquire AJB Software Design, Inc., a Toronto-based provider of payment gateway and switching solutions for large merchants in the U.S. and Canada.
A COMPLETE END-TO-END SOLUTION FOR RETAILERS
Approximately 150 large retailers in the U.S. and Canada rely on AJB’s on-premise gateway and other solutions to connect nearly a half million payment devices. AJB connects devices from Verifone and other providers to more than 100 processors and applications – such as government benefits, stored value cards, and fleet cards – required by supermarkets, c-stores and other merchants. Acquiring AJB will better enable Verifone and its partners (such as ISVs and acquirers) to deliver payment and commerce services that meet merchants’ demands for additional simplicity, security, flexibility and functionality.
“Merging AJB’s solutions and expertise with Verifone’s breadth of services and systems expertise will provide retailers multiple options to better manage and secure their payment infrastructure and provide more value to customers,” said Jennifer Miles, President of North America for Verifone. “And, our partners will be able to provide this remarkable level of flexibility and functionality to their clients as well.”
Additionally, AJB will extend Verifone’s services with:
- A solution certified by major Canadian banks and processors for EMV acceptance.
- Support for Verifone and non-Verifone devices—increasing merchants’ ability to manage and seamlessly expand their payments systems.
- The ability to offer merchants a number of subscription-based hosting options.
“Combining AJB’s offerings with Verifone’s services creates an unmatched set of hardware-neutral solutions—giving merchants the ability to select from a wider range of products that best meet their business requirements,” said AJB founder and president, Naresh Bangia. “Ultimately, this enables AJB and Verifone clients to receive stronger value and support—all from a single vendor.”
Terms of the transaction, which is expected to close during Q2 FY16, were not disclosed. Verifone will provide additional information regarding the acquisition on the company’s Q1 FY16 earnings call.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for VeriFone Systems, Inc.
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 on currently available competitive, financial and economic data 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., including many factors beyond our control. These risks and uncertainties include, but are not limited to, those associated with: the successful closing of the proposed acquisition, market acceptance of our products and service offerings, execution of our strategic plan and business initiatives and whether the expected benefits of our plan and initiatives are achieved, short product cycles and rapidly changing technologies, our ability to maintain competitive leadership position with respect to our payment solution offerings, our assumptions, judgments and estimates regarding the impact on our business of the continued uncertainty in the global economic environment and financial markets, our ability to successfully integrate acquired businesses into our business and operations, our ability to protect against fraud, the status of our relationship with and condition of third parties such as our contract manufacturers, distributors and key suppliers upon whom we rely in the conduct of our business, our dependence on a limited number of customers, the conduct of our business and operations internationally, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, and our dependence on a limited number of key employees. For a further list and description of the risks and uncertainties affecting the operations of our business, 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. The forward-looking statements speak only as of the date such statements are made. 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.
Verifone is transforming everyday transactions into opportunities for connected commerce. We’re connecting more than 29 million payment devices to the cloud—merging the online and in-store shopping experience and creating the next generation of digital engagement between merchants and consumers. We are built on a 30-year history of uncompromised security. Our people are known as trusted experts that work with our clients and partners, helping to solve their most complex payments challenges. We have clients and partners in more than 150 countries, including the world’s best-known retail brands, financial institutions and payment providers.
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