Hypercom Corporation (NYSE: HYC) and The McDonnell Group today announced they have signed a Letter of Intent to form a joint venture that will equip payment processors, banks and retailers worldwide with highly reliable and cost-effective data communications services for transaction-based applications.
The joint venture will be called Phoenix Managed Networks LLC, and will acquire and operate Hypercom's HBNet secure transaction transport business. Industry veteran John (Jack) McDonnell, Jr. will serve as CEO of Phoenix Managed Networks.
"We believe that the combination of Hypercom's HBNet business and Jack McDonnell's in-depth knowledge and expertise in data communications will significantly enhance our ability to expand market share and deliver strong returns for Hypercom's shareholders and business partners. Jack McDonnell is an expert and seasoned operator in the payments industry, and I am confident that Jack and his team will be great partners," said Philippe Tartavull, Chief Executive Officer and President, Hypercom Corporation.
"Phoenix Managed Networks is expected to bring state-of-the art, reliable and cost-effective transaction communications services to the payments industry and aggressively expand the global business Hypercom established with HBNet," said Jack McDonnell, Managing Member of The McDonnell Group. Mr. McDonnell is the founder and former Chairman and CEO of Transaction Network Services, Inc. (NYSE:TNS - News). "I am also delighted to announce that former TNS executives Matthew Mudd and Trevor Fall will be joining the management team for this venture. At TNS, Trevor was SVP of sales for the POS division and Matt was EVP, with expertise in network operations, engineering and product development."
Phoenix Managed Networks will utilize Hypercom's HBNet network to speed the authorization and processing of electronic transactions for retail point-of-sale, financial, government, health care and other customers in dial, wireless and IP POS markets. In addition, the company will utilize Hypercom's SmartPay gateway technology to support wireless and IP-initiated transactions.
HBNet is powered by robust, ultra high-density Hypercom technology strategically positioned within the North American Public Switching Telephone Network (PSTN) and at processor data centers. It supports all POS terminal protocols, provides uninterrupted service with no single point of failure, seamless load balancing, state-of-the-art Web-based reporting, and simple all-inclusive pricing.