No regrets
Lipman's Isaac Angel: VeriFone's main gain is our technology, markets and human capital.
Golan Fridenfeld 10 Apr 06 19:27
After reports were confirmed about an acquisition by rival VeriFone today, Lipman Electronics Engineering (Nasdaq: LPMA; TASE: LPMA) president Isaac Angel spoke to "Globes" today.
Globes: How do you celebrate the signing of a contract like this?
Lipman Electronic Engineering president Isaac Angel:
"The first thing you do is grab a few hours of sleep, a thing that was very much lacking over the past few days.
What does Lipman bring to the VeriFone deal?
"First of all, Lipman brings the best technology in the world for credit card verification, especially wireless. Secondly, Lipman is active in 20 markets, and is bigger than VeriFone in most of them. This means that from day one, VeriFone gains the position of market leader in some of its target markets. Thirdly, VeriFone gets the human capital at Lipman today.
Is there a plan or a clause in the contract regarding company workers?
"Lipman currently employs 1,000 workers, of which 500 are in Israel. Half our Israeli staff works at our production plants. One of the big advantages that Lipman has is the fact that it also produces the products it sells. This provides flexibility and is an advantage over the competition. Following the acquisition of Lipman by VeriFone, I expect that the amount of products made in Israel will only increase, not the opposite."
What will happen to Lipman's management, which you head?
"The company's management will be fully integrated into the merged company. My main role in the coming years will be to make sure that the Lipman-VeriFone merger succeeds. Also, I'm to be named head of operations and development of the merged company.
After 27 years at this company, isn't there an emotional aspect to the sale?
"Of course there is, but that's over and done with. This deal didn't come about in a day, and any uncertainties I might have had, or not had during the sale process, were dispensed with long ago. Today, what I feel is more a sense of pride, because over the years, this company that started from nothing has become one of the leaders in its field. I believe that the combination of these two companies will create a higher value for the investors.
Did you get additional offers for Lipman from other competitors?
"Look, we didn't put Lipman up for auction, but there were some conversations, just like the other conversations we've had over recent years with all sorts of parties."
Did Lipman's not particularly good annual report have an effect on the timing of sale and the price?
"I don't think that the timing was particularly good from our standpoint. It's true that the share deteriorated after our profit warning, but it returned to its current high trading level. The shareholders and I would have gone for this deal regardless. Moreover, Lipman is the kind of company where something is always happening; had we waited for the perfect time, it probably never would have happened. Keep in mind that VeriFone also made some major strides over the past year, so that all conditions were right for the deal to go ahead."
Published by Globes [online], Israel business news - www.globes.co.il - on April 10, 2006
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