Electronic payment solutions firm VeriFone Systems, Inc. (PAY) said Monday that it has reached an agreement with Hypercom Corp. (HYC) to sell the U.S. payment systems business of Hypercom to Ingenico S.A. Ingenico will pay $54 million in cash, subject to some post-completion price adjustments.
The sale is part of the divestiture plans announced earlier by VeriFone in connection with its proposed acquisition of smaller rival Hypercom. The deal is expected to close immediately before VeriFone completes its acquisition of Hypercom, which is anticipated to occur in the second half of the year.
It was in November 2010 that VeriFone agreed to acquire smaller rival Hypercom for about $485 million in an all-stock deal, which includes net debt assumed by VeriFone.
The Hypercom U.S. business being sold achieved revenues of around $61 million in 2010. When the merger is completed, VeriFone will retain Hypercom's non-payment terminal Networking products operations in the U.S.
PAY closed Friday's regular trade at $54.55, down $0.40 or 0.73 percent, on 2.86 million shares.
HYC settled Friday at $11.97, down $0.06 or 0.50 percent, on a volume of 969,002 shares.
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