The e-payments business has become increasingly crowded as many companies have rushed in to capitalize on the much-anticipated financial flows from online commerce.
Hewlett-Packard joined the ranks of
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Tech company to buy HP's VeriFone
For VeriFone, adoption by Gores Technology Group provides an opportunity to fare better than its cousin CyberCash, which recently filed for bankruptcy--both companies were started by payment guru William Melton. Unlike many newer entrants to the e-payments field, VeriFone has a solid history in traditional payments, with customers and ongoing revenue from these products and services to prove it (such as hardware and software for in-store and in-branch point-of-sale transactions).
What's more, VeriFone takes advantage of those core capabilities for innovative offerings. Its Omni 3300 multiapplication terminals provide a good example of a single offering that integrates traditional payments, such as debit and credit cards, with new features such as a loyalty program driven by smart cards.
Gores has a short but solid track record for bringing companies to health--as in the case of The Learning Company, which though a $1.2 million-per-day liability, turned a profit 75 days after having been acquired from Mattel. If this track record continues, Gores will provide targeted yet unobtrusive support to augment--but not substantially alter--VeriFone's executive team and strategy. Allowed to proceed with relative autonomy, VeriFone has a better chance to refocus on its core business and recover from the disruption associated with a $29 million restructuring conducted under HP.
VeriFone customers should remain confident in VeriFone's ability, as a result of Gores' involvement and financial strength, to deliver on current offerings for future developments.
(For related commentary on hot technologies including e-cash and e-payments technologies, see TechRepublic.com--free registration required.)
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