Hypercom

Hypercom Corporation was an Australian-founded payment-technology company that developed electronic payment terminals and related transaction-processing software. Established in Sydney in 1978 by George Wallner, David Saul, Brian Pascoe, and Leslie Fritz, the company became an early specialist in the hardware and software used to authorize and process card payments. Its initial commercial strength was in Australia and the wider South Pacific, where it became a leading supplier of payment terminals. A significant international turning point came in 1988, when Hypercom entered into an agreement with American Express to supply terminals in the United States. To support and consolidate that business, the company moved its head office from Australia to Arizona. The relocation placed Hypercom in the center of the much larger United States payments market, but also brought it into direct competition with VeriFone, another major supplier of point-of-sale payment equipment. Hypercom's business covered payment-terminal hardware and the software and connectivity required to support electronic transactions. Its products were used by merchants, financial institutions, payment processors, and other organizations handling card payments. The company operated across multiple regions, including North America, Europe, the Middle East, Africa, Australia, and the South Pacific. Its brand was associated primarily with payment acceptance infrastructure rather than with consumer-facing banking or card products. In 2011, Hypercom became the subject of a major industry transaction. VeriFone agreed to acquire the company, while portions of Hypercom's operations were to be separated or sold to address competition concerns. Ingenico announced an agreement to acquire Hypercom's United States Payment Systems Business before completion of the VeriFone transaction, and Hypercom's United Kingdom and Spanish operations were also slated for separate sale. The United States Department of Justice filed a civil antitrust lawsuit in May 2011 seeking to block the proposed acquisition, arguing that the proposed divestiture did not adequately resolve competitive concerns. The transaction was ultimately completed in August 2011 after a regulatory settlement. VeriFone acquired Hypercom's United States business, while the United States payment-systems operations were sold to an entity sponsored by The Gores Group. Hypercom Spain and Hypercom UK were acquired by KleinPartners Capital and became part of Spire Payments, formed with Kazem Aminaee, a former president of Hypercom's Europe, Middle East, and Africa operations. Hypercom US subsequently changed its corporate name to Equinox Payments in September 2011. As a result of these divestitures and transfers, Hypercom ceased to operate as an independent unified corporate brand.

Hypercom was founded in Sydney, Australia, in 1978 by Hungarian-born George Wallner, David Saul, Brian Pascoe, and Leslie Fritz. The company entered the emerging electronic-payments industry at a time when merchants and financial institutions were beginning to replace manual card-imprinting and cash-based processes with electronic authorization and transaction systems. Hypercom concentrated on the infrastructure layer: terminals placed at merchant locations and the software and communications systems needed to transmit payment data. The company's early growth was especially strong in Australia and the South Pacific. It became a dominant supplier of payment terminals in that regional market, establishing a base from which it could pursue international expansion. In 1988, Hypercom signed an agreement with American Express to supply terminals in the United States. The deal was strategically important because it gave the Australian-founded company a major commercial relationship in the world's largest payments market at the time. To consolidate the American Express business and support its United States operations, Hypercom moved its head office from Australia to Arizona. The relocation changed Hypercom's competitive environment. In the United States, the company faced direct competition from VeriFone, which was also a leading provider of payment terminals and point-of-sale transaction technology. Hypercom continued to sell payment hardware and software across international markets, including North America, Europe, the Middle East, Africa, Australia, and the South Pacific. Its activities remained focused on business-to-business payment acceptance rather than consumer payment accounts or card issuance. The company later became involved in a complex 2011 restructuring and acquisition process. VeriFone proposed acquiring Hypercom, but the transaction raised antitrust concerns because the two companies competed in payment-terminal markets. To facilitate the deal, parts of Hypercom's business were proposed for divestiture. On April 4, 2011, Ingenico announced an agreement to acquire Hypercom's United States Payment Systems Business before the VeriFone acquisition closed. On the same day, Hypercom's United Kingdom and Spanish operations were announced for separate sale to a private investment company. Those European operations were subsequently associated with Spire Payments. The United States Department of Justice challenged the proposed transaction on May 12, 2011, filing a civil antitrust lawsuit. The government argued that the proposed sale to Ingenico did not adequately resolve the competitive issues created by a VeriFone acquisition of Hypercom. The dispute was resolved through a regulatory settlement rather than an outright prohibition. On August 4, 2011, VeriFone announced completion of its acquisition of Hypercom's United States business, with the United States payment-systems operation to be sold to an entity sponsored by The Gores Group. At the same time, KleinPartners Capital announced the acquisition of Hypercom Spain and Hypercom UK. Kazem Aminaee, formerly president of Hypercom's Europe, Middle East, and Africa operations, formed Spire Payments in connection with the European business. On September 30, 2011, Hypercom US formally changed its corporate name to Equinox Payments. These transactions divided the former Hypercom operations among different owners and successor businesses, ending Hypercom's existence as a single independent operating company. The brand is therefore principally historical, remembered for its role in the development and international expansion of electronic payment-terminal technology.

• 2011

  Planned business divestitures announced

  [1]Hypercomen.wikipedia.org

  Ingenico announced a planned acquisition of Hypercom's United States Payment Systems Business, while the United Kingdom and Spanish operations were designated for separate sale.

• 2011

  Antitrust lawsuit filed

  [1]Hypercomen.wikipedia.org

  The United States Department of Justice sued to block the proposed VeriFone acquisition, citing unresolved competition concerns.

• 2011

  VeriFone acquisition completed

  [1]Hypercomen.wikipedia.org

  VeriFone completed the acquisition of Hypercom's United States business after a settlement with antitrust regulators.

• 2011

  Hypercom US became Equinox Payments

  [1]Hypercomen.wikipedia.org

  Hypercom US formally changed its corporate name to Equinox Payments.

• 1988

  American Express agreement

  [1]Hypercomen.wikipedia.org

  Hypercom signed an agreement to supply payment terminals to American Express in the United States and moved its head office to Arizona.

• 1978

  Hypercom founded in Sydney

  [1]Hypercomen.wikipedia.org

  George Wallner, David Saul, Brian Pascoe, and Leslie Fritz established Hypercom in Sydney, Australia.

A specialist provider of merchant payment terminals and electronic transaction-processing technology, with particular historical strength in the South Pacific and later international operations.

• Electronic payment hardware

  Hypercom payment terminals

  Hypercom's core offering was a range of electronic payment terminals used by merchants and payment-service organizations to accept card transactions. The terminals formed the physical point of interaction between customers, merchants, and payment networks, and represented the company's strongest historical position in Australia, the South Pacific, and later international markets.

• Payment software

  Hypercom transaction-processing software

  Alongside its terminal hardware, Hypercom supplied software and supporting transaction-processing technology for electronic payment acceptance. These systems helped connect merchant point-of-sale devices with processors and financial institutions, enabling authorization and transmission of payment information.

• 2011

  Antitrust challenge to the VeriFone acquisition

  The United States Department of Justice filed a civil lawsuit to block VeriFone's proposed acquisition of Hypercom. The government contended that the planned divestiture of Hypercom's United States point-of-sale business did not sufficiently address the competitive effects of combining two major payment-terminal suppliers. The matter ended in a settlement that permitted the transaction subject to a further sale of the United States payment-systems business.

  Source

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• 2011

  Restructure operations around the VeriFone acquisitionM&A

  Background

  VeriFone's proposed acquisition raised antitrust concerns because the companies competed in payment-terminal markets.

  Action taken

  Hypercom's United States Payment Systems Business was designated for transfer, while the United Kingdom and Spanish operations were separated and sold to other buyers.

  Aftermath

  VeriFone acquired the United States business after a regulatory settlement; the United States operation was then sold to a Gores Group-sponsored entity, and the European operations became associated with Spire Payments.

  • VeriFone — VeriFone completed the acquisition after agreeing to the regulatory settlement and required divestiture.
  • Ingenico — Ingenico announced an agreement to acquire Hypercom's United States Payment Systems Business as part of the proposed remedy structure.

  Source

• 2011

  Rename Hypercom US as Equinox PaymentsStrategy

  Background

  The United States business was separated during the acquisition and regulatory process.

  Action taken

  Hypercom US formally changed its corporate name to Equinox Payments.

  Aftermath

  The name change marked the separation of the United States operation from the former Hypercom corporate structure.

  Source

• 1988

  Move headquarters to ArizonaStrategy

  Background

  Hypercom secured an agreement to provide terminals to American Express in the United States.

  Action taken

  The company moved its head office from Australia to Arizona to consolidate and support the American Express relationship.

  Aftermath

  The move positioned Hypercom for broader participation in the United States payments market, where it competed directly with VeriFone.

  Source

1. 1Hypercomen.wikipedia.org