A pioneer in the mobile payments space has reached theend of the line. Competition from other purpose-built terminals and, moreimportant, the payments-enabled smartphone domain has pushed Way Systems intothe arms of VeriFone. The acquisition makes sense for VeriFone as it addstens of thousands of mobile merchants to VeriFone’s PAYware Connect Gateway,helping the company with its shift toward transaction-based pricing and givingit a new cadre of merchants to move onto VeriFone hardware. Theacquisition price of $6 million with a possible performance kicker of $3million is a long way from the over $50 million invested in the venture since2004.
VeriFone Systems,Inc. (NYSE: PAY), today announced it has acquired the assets of WAY Systems,Inc, a pioneer in mobile POS solutions and gateway services for mobilemerchants. The acquisition will not have a material impact on VeriFone’sfinancial results. The purchase price consisted of an upfront payment of $6million dollars and an earn-out payable in one year of up to an additional $3million dollars should certain performance targets be met.
Over the past fiveyears, WAY has built up a customer base of more than 25,000 mobile merchantswho use the company’s compact mobile POS technology and gateway services.VeriFone will immediately take over support of these merchants within itsexpanding PAYware Connect Gateway infrastructure. Additionally, VeriFone willoffer continuous non-stop support for all existing WAY mobile systems,bolstered by VeriFone’s extensive mobile portfolio, including PAYware Mobileand VX Evolution secure payment systems.