An Ingenico S.A. board member reportedly contends a takeover bid for the France-based point-of-sale terminal maker could be renewed.
The comments from the board member, Allan Green, were included in Reuters news services reports from France. Ingenico did not respond to a PaymentsSource inquiry.
Ingenico rejected a $1.9 billion unsolicited bid Dec. 19 (see story). The buyer was not identified, though Reuters says it was Washington, D.C.-based Danaher Corp. Danaher officials also did not respond to PaymentsSource requests to comment or to confirm whether it made the offer.
According to Reuters, Green told BFM radio Dec. 21 that the potential buyer’s interest is “real and is motivated by a desire to develop Ingenico more quickly.”
Meanwhile, Ingenico reasserted Dec. 21 that the original $1.9 billion bid was not binding. Ingenico stock closed at 26.39 euros per share Dec. 21, down 4% from the previous day’s close of 27.49 euros.
A bid for Ingenico is not too surprising, says Robert Dodd, an analyst at Memphis, Tenn.-based Morgan Keegan & Co. Inc.
Ingenico’s reaction to the bid appears to be a classic case of disagreement over price, Dodd tells PaymentsSource. “That’s not to say the deal, which didn’t turn hostile, couldn’t come back.”
Large point-of-sale device companies are attractive acquisitions because of their positions in the payments industry, Dodd says. Like its largest rival, VeriFone Systems Inc., a San Jose, Calif.-based terminal maker, Ingenico is well positioned in the payments industry.
Ingenico has a large market share in Western Europe and is growing sales internationally, Dodd says. “The bulk of their businesses are very similar,” Dodd says, referring to Ingenico and VeriFone. But Ingenico may be more attractive because of its valuation, he says.
Ingenico generated $953.6 million in 2009 revenue (see story), compared with VeriFone’s $845 million. VeriFone earned $1 billion in fiscal 2010 revenue (see story). Ingenico has not yet reported its 2010 results.
VeriFone also is weaker in Western Europe than Ingenico is, Dodd says. That may change if VeriFone’s planned acquisition of Hypercom Corp., a Scottsdale, Ariz.-based POS device maker, is approved and finalized in late 2011, he notes (see story).
A combined VeriFone-Hypercom could become a takeover target, Dodd adds, noting Hypercom has a strong presence in Western Europe.
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