VeriFone Holdings (NYSE: PAY) today announced that it is acquiring the assets of Orange Logic Ltd., a South Korean payment systems provider. Financial terms were not disclosed.
With the acquisition, VeriFone gains the people and infrastructure to introduce its secure electronic payment product line into the Republic of Korea, and an existing domestic product line and customer base. Although South Korea is second only to the U.S. market with more than 2.5 million deployed electronic payment systems, only 10%-15% of those meet government security requirements for compliance with the international EMV standard.
VeriFone CEO Douglas G. Bergeron said: "We see great potential in the growing South Korean market and are optimistic about the high growth potential for the transition to mandated EMV solutions. In addition to generating immediate revenue from Orange Logic's certified and customized products, VeriFone is acquiring a strong foundation of development, operations, service, and sales resources on which to expand our global product line into this large market."
Orange Logic was founded in 2004 and has primarily been supplying electronic payment devices to distinguished customers in the South Korean retail and banking segments.
Effective immediately, Orange Logic will operate as VeriFone Korea and will continue to manufacture the existing Orange Logic product family. VeriFone is now the only global payments solutions provider with a physical presence in South Korea. The acquisition is expected to expedite the certification and availability in South Korea of VeriFone's recently announced VX Evolution systems, which will provide Korean processors with greater options to meet EMV mandates.