6th Dec 2012. Global payment solutions provider VeriFone Systems (NYSE: PAY) and ANZ Bank (ASX:ANZ) have announced an agreement for Verifone to acquire all the outstanding shares of EFTPOS New Zealand Limited (ENZ), a 100% owned subsidiary of ANZ Bank New Zealand Limited (ANZ NZ) for approximately NZ$70m (approximately US$59m).
Additionally, VeriFone has announced an an asset sale and purchase agreement with IT distribution firm Sektor Group of New Zealand. to acquire its Sektor Payments operation for approximately NZ$9.5m (approximately US$8m). Sektor Payments is New Zealand’s largest EFTPOS distributor.
Sektor Payments, which will operate as VeriFone New Zealand, is the exclusive VeriFone distributor in New Zealand with the largest reseller network that provides VeriFone payment solutions to merchants. Sektor has distributed VeriFone EFTPOS terminals exclusively for the last three years. The retail technology, networking and mobility divisions of Sektor are not involved in this transaction and remain in their current form.
ENZ offers end-to-end card payment solutions, encompassing terminal supply, Point of Sale (POS) switching, and merchant acquiring on behalf of ANZ NZ for more than 40,000 customers throughout New Zealand. The acquisitions provide VeriFone with comprehensive software, services and distribution resources to serve New Zealand with payment solutions and managed services, leveraging its Point payments-as-a-service platform. Employing 160 people, ENZ will continue to operate under its current branding, EFTPOS New Zealand, as a VeriFone company. It is the largest EFTPOS solutions and payments provider in New Zealand, directly serving more than 40,000 merchant customers and offering customers an end-to-end payment solution, including card acceptance devices, software, services and processing.
ANZ NZ, New Zealand’s largest bank, will provide transitional services using its existing switch infrastructure as VeriFone begins deployment of its Point platform.
VeriFone Systems, Inc. is the global leader in secure electronic payment solutions. As a global supplier of payment solutions, VeriFone operates in more than 110 countries with a worldwide workforce of more than 5,000 employees. VeriFone payment solutions are designed to meet the needs of merchants, processors, banks and acquirers in both developed and emerging economies worldwide. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
“These acquisitions reflect VeriFone’s commitment to the New Zealand market,” said Anthony Chalhoub, general manager, Australia and New Zealand, for VeriFone. “VeriFone’s presence in the country will allow our customers and distribution partners to benefit from greater access to VeriFone’s expertise, advanced solutions and services that add value to both merchants and consumers.”
ENZ’s sale comes as ANZ simplifies its local business, having announced its plans to ditch the National Bank brand over the next two years ahead of the expiration of its brand licence with the UK’s Lloyds TSB.
Fred Ohlsson, Managing Director Business Banking, ANZ New Zealand said: “In recent years ANZ NZ has embarked on a simplification strategy focusing on our core business. While the merchant acquiring business is part of our core bank offering, the terminals and POS switching businesses are an increasingly specialist technology business and it makes sense for it to be owned by VeriFone. The sale of ENZ to VeriFone positions these businesses for growth, while the ongoing relationship with ENZ helps ensure ANZ NZ can continue to deliver excellent payments service to our customers in New Zealand.”
Sektor Payments general manager Andre van Duiven says the acquisition by VeriFone comes as the industry requires more sophisticated compliance management and security. “This simplification of the international supply chain provides a much more responsive technical and commercial structure. This means new global compliance and security initiatives can be introduced faster to merchants in New Zealand.” said Mr van Duiven.