Hewlett Packard (HP) is hoping to convince businesses to make cash purchases on the internet after buying swipe card terminal vendor Verifone in a $1.18 billion deal.
Verifone, the world?s biggest manufacturer of point of sale (Pos) transaction software and end-to-end payment systems, will make three types of internet commerce software: Pos software for merchants, gateway software for financial systems and an electronic wallet for consumers, to be sold with HP hardware. Verifone, which had a turnover of $472 million last year, will operate as a wholly owned subsidiary of HP.
The purchase is the largest in HP?s history and was unusual in that the manufacturer normally forms partnerships but does not buy them.
Tim Evans, European sales and marketing manager at HP, said: ?The combination of HP and Verifone is important because we share the same vision for commerce over the internet. Verifone is quick to market; HP is the second-largest computer company in the US. It?s a serious statement about our commitment to electronic commerce.?
Verifone European marketing manager Mark McMurtie said details had not been finalised about how products will be marketed, distributed and sold.
According to HP, it plans to integrate its internet and intranet security products with Verifone?s software for downloading electronic cash to smartcards.
Rick Belluzzo, executive vice president of HP?s computer organisation, did not rule out further acquisitions in electronic commerce but said the companies will work on developing systems that adhere to Visa and Mastercard?s secure electronic transaction protocol for internet credit card payments.
Verifone CEO, president and chairman Hatim Tyabji will run the Verifone subsidiary, answering to Belluzzo. The subsidiary will retain offices in Redwood City, California; the UK; Paris; Spain and Germany.
Businesses also admit to holding data without permission of subjects
Zedsphere says end-point security vendor's offerings will be a 'key' feature of its wider portfolio
New acquisition will bring UK cloud service provider's global headcount to over 700
Law firm claims that Oracle lied to investors over what is driving its cloud revenue growth and boosted sales through 'threats and extortive tactics'