ndustry stalwart VeriFone, headquartered in San Jose, Calif., is set to acquire Rosh Haayin, Israel-based Lipman, a leading provider of electronic payment solutions. The merger is expected to close in VeriFone's fiscal fourth quarter ending Oct. 31, 2006. The move will broaden VeriFone's global market and significantly strengthen its wireless capabilities, making it the world's largest point-of-sale terminal maker.

"The two companies are the fastest growing and most profitable providers of point-of-sale electronic payments technologies," said Douglas G. Bergeron, VeriFone's Chairman and Chief Executive Officer. "Geographically, the businesses are complementary, and [combined] will be the leader in North America and the emerging markets, and number one or number two in most other key markets worldwide. "

In a letter to VeriFone customers, Bergeron emphasized that they will benefit from the $793 million deal because the company will be stronger, more reliable, more innovative and better connected. "I want to assure you that the continuity of your business is first and foremost, and we are fully committed to supporting and aggressively growing the Vx Solutions, Nurit and Omni product lines," he said. " ... We are working quickly to finalize the composition of our larger sales force and support infrastructure going forward, but you should continue to rely on your existing relationships. Any changes or transitions will be communicated to you well in advance."

VeriFone has been making wireless terminals for about six years. Lipman has been doing so for more than a decade and, according to Bergeron, has the leading share of the wireless installed base wherever it competes. After the merger, VeriFone will add Lipman's terminals to its line.

Wireless is VeriFone's fastest-growing segment, comprising 25% of its international business last year. Due to the robust landline infrastructure in the United States, the wireless market is less lucrative here than overseas. However, VeriFone thinks the domestic restaurant industry is ripe for wireless pay-at-the-table technology.