VeriFone Systems, Inc.
) recently announced an agreement with ANZ Bank New Zealand
Limited to acquire EFTPOS New Zealand Limited (ENZ).
In addition, VeriFone will also take over Sektor Payments
operation from the Sektor Group of New Zealand.
These acquisitions resent an opportunity to VeriFone to expand
into New Zealand with its broad range of payment solutions and
managed services, leveraging its Point payments-as-a-service
Meanwhile, ENZ will continue to operate under its existing
brand name, EFTPOS New Zealand, but as a VeriFone
Being the largest EFTPOS solutions and payments provider in
New Zealand, ENZ serves more than 40,000 merchant customers and
offers end-to-end payment solution to customers, including card
acceptance devices, software, services and processing.
On the other hand, Sektor Payments will operate as VeriFone
New Zealand and will be the sole VeriFone distributor in New
Zealand, empowered with the largest reseller network that
provides VeriFone payment solutions to merchants.
The acquisition will strengthen VeriFone's presence in the New
Zealand market. VeriFone designs system solutions that facilitate
the long-term shift toward electronic payment transactions from
cash and checks.
Growth rates for electronic payment solution systems have been
higher in international markets, primarily due to the relatively
low penetration rate of electronic payment transactions in many
regions, like Eastern Europe, Latin America and Asia.
Consequently, in order to establish a footprint in key growing
markets, VeriFone continues to make strategic
Competition continues to be stiff from the likes of
), which recently acquired Retalix Ltd. approximately $650
million. Organic growth also remains a matter of
Hence, we maintain our Neutral recommendation post the fourth
quarter results, which missed the estimates by a penny leading to
a significant fall in share price.
We currently have a Zacks #4 Rank, which translates into a
short-term rating of Sell due to near-term pressure on the
NCR CORP-NEW (NCR): Free Stock Analysis
VERIFONE HLDGS (PAY): Free Stock Analysis
To read this article on Zacks.com click here.