DOJ Sues To Block VeriFone-Hypercom Merger

Law360, New York (May 12, 2011, 4:42 PM EDT) -- The U.S. Department of Justice launched a civil suit in Washington on Thursday seeking to stop credit card swipe machine maker VeriFone Systems Inc. from snapping up smaller rival Hypercom Corp. in a $485 million deal.

In its complaint, the DOJ contends the takeover would curb competition in the U.S. market for point-of-sale terminals — credit card swipe machines — and drive up prices, while reducing innovation and quality. VeriFone and Hypercom are two of the three leading terminal makers in the U.S., according to the...
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