eriFone Inc. announced on Dec. 6, 2004 that it will purchase GO Software Inc. from Return On Investment (ROI) Corp. When the transaction is complete, VeriFone will pay $13 million in cash and up to $2 million in contingencies, which are linked to future business performance through June 2006.

VeriFone will incorporate GO Software's solutions to broaden and enhance its line of transaction automation products, company spokesman Pete Bartolik said.

"It's a very strong fit," he said. "Today we provide transaction automation at the point of sale (POS) as well as at the point of presence (POP). GO Software's products enhance the solutions that VeriFone can now provide at those POS and POP locations.

"Many of our direct and indirect distribution channels today have needs for all of these products and now we can deliver them in a cohesive and efficient manner."

The acquisition furthers VeriFone's strategy to expand its footprint in payment systems into other integrated POS environments, said Douglas G. Bergeron, VeriFone's Chairman and Chief Executive Officer.

"The increasing technology, especially security complexity at the POS offers a great opportunity for VeriFone to contribute to these product lines," Bergeron said.

The acquisition is expected to close in January 2005 and is subject to ROI stockholder approval and other customary closing considerations.

ROI had been looking for a buyer since it announced it was divesting itself of the GO subsidiary in late September.

The company said it intends to focus on Tectonic Network, the ROI subsidiary that provides software, online/print marketing and sales tools for the construction industry.

When the sale was announced, GO Software spokesperson Mandy Ownley said the divestiture would benefit GO because ROI felt its interests and resources were more strategically suited to focusing on its growing construction segment.

Financial Technology Partners LLC advised VeriFone on this transaction and SVB Alliant advised ROI.