VeriFone Holdings, Inc. (PAY) announced the acquisition of the remaining minority interest in VeriFone Transportation Systems (VTS) and aligned all VTS operations within VeriFone’s Integrated Systems organization. Financial terms of the deal were not disclosed.
Based in San Jose, California, VeriFone designs, markets and services a transaction automation system that facilitates electronic payments between consumers, merchants and financial institutions.
In 2005, VTS was formed as a joint venture with TaxiTronic, Inc., for the purpose of equipping taxis with integrated fleet management and customer payment systems. The acquisition of the remaining minority interest in VTS allows VeriFone to further drive the rapid adoption of the payment systems within the transportation segment, particularly in international markets.
Management expects that the Integrated Solutions organization will now advance VeriFone’s development and implementation of integrated solutions for transportation. It will also support a strategy of driving payment solutions and transactions as well as advertising sales by the recently formed VeriFone Media Solutions group.
The company has been taking steps to strengthen its payment business both at the local/national and international level.
VeriFone earlier acquired the Taxi Media business from Clear Channel Outdoor. VeriFone intends to leverage this well-developed channel into its Media Solutions payment-enabled business.
VeriFone has also entered the mobile payment initiation space in China. As a co-lead investor in Trunkbow International Holdings, VeriFone acquired an 8.6% ownership in Trunkbow and a seat on its board of directors. Based in Jinan, China, Trunkbow is a leading provider of technology platforms that enable mobile payments and mobile value added service applications.
Management believes that mobile phones are playing an increasingly active role in the initiation of payment transactions both within the existing payments infrastructure as well as with other telecommunications carriers like China Mobile (CHL), China Telecom (CHA), and China Unicom (CHU).
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