DOJ

Summary Box: DOJ sues to block VeriFone deal

AP News
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Posted: May 12, 2011 6:36 PM
Summary Box: DOJ sues to block VeriFone deal

THE LAWSUIT: The Justice Department on Thursday filed a civil antitrust lawsuit in federal district court to block VeriFone Systems Inc.'s proposed purchase of rival electronic-payment provider Hypercom Corp.

THE DEAL: VeriFone Systems announced plans to buy Hypercom in November in an all-stock deal valued at $485 million, including $65 million of debt.

THE CONCERN: The Justice Department warns that allowing VeriFone to buy Hypercom would likely drive up prices for point-of-sale terminals since the two companies together control more than 60 percent of the U.S. market for terminals used by the largest retailers.