Thursday, December 20, 2007

Hypercom to Buy Thales' e-Transactions Business Line

Phoenix-based Hypercom Corp., a developer of secure electronic payment software, reported Thursday that it has agreed to purchase the e-Transactions business unit of Thales SA, a European publisher of secure card payment applications. Hypercom said the total share purchase price computes to some $120 million in cash, with an additional $30 million contingent upon the combined companies’ 2008 performance. Hypercom said it will finance the transaction with $60 million of on-hand cash and with a $60 million senior credit facility it obtained from Francisco Partners. The venture capital firm, Hypercom noted, will be granted a warrant to purchase some 10.544 million shares of Hypercom common stock at $5 per share. Hypercom also revealed that Philippe Tartavull, previously the company's president and chief operating officer, has been promoted to chief executive officer and president, effective immediately.