VeriFone Systems Acquires WAY Systems

VeriFone Systems, a developer of electronic payment technology, said on Wednesday it has acquired the assets of WAY Systems, a developer of technology and services for mobile merchants. Under the deal, VeriFone will pay $6 million up front, as well as up to $3 million more depending on the company's future performance. WAY Systems was founded in 2002 with initial seed capital from Bill Melton, the founder of VeriFone. Through 2008, the company then received an additional $50 million in equity investments from Bessemer Venture Partners and Austin Ventures, as well as debt financing from Lighthouse Capital Partners. WAY holds patents for a range of intellectual property, including the connection of a mag-stripe reader to a mobile phone, PDA or smartphone. "The intellectual property we are acquiring will significantly contribute to our vision of empowering wide scale adoption of mobile payments," said Jeff Dumbrell, an executive vice president at VeriFone.