About Verifone Systems, Inc.
Verifone Systems makes hardware and software for conducting non-cash transactions at cash registers, gas pumps, on mobile devices, and other devices. Users can swipe or insert cards or hold smart phones within range to conduct transactions. It also provides smart card and check readers, receipt printers, and internet commerce software for large chains as well as small businesses. It also provides installation, training, and other services. Customers include companies in the hospitality, retail, and healthcare markets, as well as government agencies. Verifone’s devices process about 7.6 billion transactions a year. In 2018 the company was acquired by Francisco Partners, a private equity firm, for $3.4 billion.
Change in Company Type
Verifone Systems was sold to Francisco Partners for $3.4 billion and became a privately held company in 2018. Verifone plans to continue the shift from point-of-sale hardware to payment and commerce tools under the wing of Francisco Partners. The company's revenue had slumped and it had net losses in four of its last five years as a public company.
Verifone offers point of sale devices, software, services, support, training, and maintenance.
The company sells point-of-sale electronic payment devices, security, and encryption software, and software for payments and commerce applications. It also provides transaction services, managed services and terminal management, payment-enabled media, in-taxi payment, security, and other value-added services at the point of sale. Other offerings include installation and deployment, post-sale support, repairs, and training.
Verifone has outsourced manufacturing to third party contractors concentrated in China and Brazil.
Verifone is headquartered in San Jose, California and has several offices and research facilities in the US. Internationally, the company has facilities in Canada, Mexico, Brazil, Europe, Asia, and Australia. Its products are used in more than 150 countries.
Sales and Marketing
Verifone’s customers are financial institutions, payment processors, large retailers, petroleum companies, transportation companies, government organizations, healthcare companies, quick service restaurants, smaller merchants, and retailers.
Verifone had benefited from a general trend away from cash and check transactions toward electronic credit and debit payments. In another transition, software is used handle more payment tasks while less is dependent on transaction hardware (though hardware is still the gateway for Verifone revenue).
To help it devote more resources to developing services, the company restructured in 2017, reducing headcount, exiting under-performing businesses, and consolidating facilities. During the year, Verifone sold the Taxi Solutions and Petro Media units.
As a private company, owned by private equity firm Francisco Partners, Verifone can work to build its software side without having to answer to the stock market every quarter.
Scholar William Melton founded VeriFone in Hawaii in 1981 to develop electronic mail systems that would keep traveling employees in touch with their offices. By 1984 the company had diversified into transaction automation systems, introducing the first low-cost electronic credit card and check verification terminal. Former Sperry (now Unisys) executive Hatim Tyabji joined as president in 1986 and moved the company to California. He guided VeriFone away from hardware and toward software-driven systems to connect computers, printers, operating systems, and terminals.
VeriFone went public in 1990. The next year it released transaction systems that incorporated point-of-service tasks with inventory control and other functions. In 1992 VeriFone introduced an electronic cash register that verified checks and accepted credit and debit card payments. Melton devoted his energies in 1994 to founding (now defunct) Internet payment services company CyberCash.
In 2018, Verifone was bought by Francisco Partners, a private equity firm, for $3.4 billion and became a private company.
88 W PLUMERIA DR
San Jose, CA 95134-2134
Phone: 1 (408) 232-7800
Employer Type: Publicly Owned
Chairman: Alex W. Hart
EVP and CFO: Marc E. Rothman
COO: Sheetal Shah
Employees (This Location): 92
Employees (All Locations): 5,600
San Jose, CA
San Diego, CA
Santa Clara, CA
Las Vegas, NV