To enable it to integrate the development, sales, implementation and support of end-to-end encryption offerings
VeriFone Systems has acquired an encryption firm Semtek, to deliver end-to-end encryption offerings.
The purchase price consisted of previously invested equity funding in Semtek by VeriFone. Semtek shareholders received VeriFone common shares that valued the acquired company at $18m.
VeriFone said that this acquisition will enable it to integrate the development, sales, implementation and support of end-to-end encryption offerings into the existing VeriFone organisation to better fulfill customer needs, increase revenue and enhance support.
In addition, VeriFone has offered royalty-free software licenses to device manufacturers and payment processors to further spur market adoption.
VeriFone executive vice president Bud Waller said that with increasing market demand for their VeriShield Protect end-to-end encryption offering, acquiring Semtek’s core encryption technology ensures they can more effectively ramp up to meet customer demands and foster industry-wide acceptance of this critically important component to securing payment transactions.