Verifone – Account Deep Dive Analysis

Transcription

Verifone – Account Deep Dive AnalysisOctober 20181Source : DRAUP1

AGENDAAccount Profile01Business & Financial Overview Verifone Overview Highlights on Verifone overview Last 5 years revenue analysis02Globalization Footprint Revenue split by geography Key operating business segment03Outsourcing Vendor Analysis Organization Structure CXO’s and Executives04Rolodex05Recommendations2Source : DRAUP2

Company Overview – Verifone was acquired by Francisco Partners in 2018 representing a totalconsideration of approximately 3.4 billion, which includes Verifone’s net debtAbout VerifoneYear of Establishment:Headquarter:1981San Jose, California, United StatesVerifone is a global leader in payments and commercesolutions at the point of sale (“POS”). Verifone havedesigned, manufactured, marketed and supplied a broadrange of innovative payment solutions and complementaryservicesRevenue vs R&D spend (2013-17)Employees (2017): 5,600Revenue (2017):R&D Spend (2017): 1.87 billion 0.21 billionRevenue share by Geography (2017)EMEA2.001.861.701.99Revenue CAGR(2013 - 2017):1.872.41%0.17B20130.20B20140.19B2015Revenue in USD 4%Asia-Pacific13%Revenue share by segment (2017)VerifoneServices42%VerifoneSystems58%R&D CAGR(2013 - 2017):20175.42%R&D spend in USD billion3Note – DRAUP data curated from Verifone financial reports published annually and updated in September, 2018Source : DRAUP3

Verifone – Business Segments OverviewVerifone SolutionsVerifone SystemsVerifone ServicesElectronic payment devicesCommerce-based ServicesOperating SystemsLeasing and MaintenanceSecurity and EncryptionSoftwarePayment TransactionRouting and ReportingPayment Software4Note – DRAUP data curated from Verifone financial and analysts reports published annually and updated in October,2018Source : DRAUP4

Verifone – Executive LeadershipMichael PulliChief Executive OfficerPaul GalantVice ChairmanVin D’AgostinoMarc E. RothmanSheetal ShahEVP and Chief Strategy OfficerExecutive Vice President and Chief Financial OfficerChief Operations OfficerVikram VarmaJoe MachCarlos LimaGeneral Counsel and SecretaryPresident, Verifone North AmericaPresident of Latin America and the CaribbeanJune FelixBulent OzayazSteve AliferisPresident of EuropePresident of EEMEAPresident of Asia-PacificRobin LykinsChief People OfficerRichard CharSenior Vice President of Business and CorporateDevelopment5Note: The above analysis is based on the DRAUP’s Executive Module, updated in October, 2018.Note: Executives mentioned above are part of Executive Leadership team as reported by the organization. Exhaustive list of all the executives will be available in Draup PlatformSource : DRAUP5

KEY STRATEGIC PRIORITIES: Core Business Initiatives, Organizational Restructuring& Focus on Emerging TechnologiesCore Business Initiatives In 2018, Verifone was acquired by Francisco Partners, a leading technology-focusedOrganisational Restructuring Francisco Partners and Mike Pulli was appointed as new CEO of Verifone in 2018private equity firm for 3.4 B to build compelling and impressive products and technology Acquisition of AJB Software, a Toronto-based provider of payment gateway and switching Verifone announced the appointment of Dr. Ronald Black and Mr. Larry Klane to itsBoard of Directors in 2017solutions for large merchants in the U.S. and Canada in 2016 to expand services offering for large retailers in the U.S. and CanadaPaul Galant stepped down as Chief Executive Officer at Close of Transaction withVerifone named Rowan Trollope as senior Vice President and General Manager of IoTand Applications for Cisco Systems and to its Board of Directors in 2017Focus on Emerging Technologies Verifone introduced EZ – Receipt, a software cloud-based technology that generates an electronic receipt at the pump which creates a fast and simple pay-and-go payment experience Verifone and POS Portal introduced Out-of-the-Box which is a Secure Payment Solution for small businesses to increase consumer engagement and drive efficiency in 2018 Launched Engage V400c, the First Touchscreen Countertop in Next Generation Family in 2018 and the solution is ideal for any small to midsized business (SMB) in a variety of environmentsincluding retail, hospitality, drugstore, casual restaurant, and convenience store Verifone introduced Carbon Mobile 5 which is the first in a line of commerce solutions that brings mobility, payment, and commerce into one powerful and portable device in 2018 Introduced Verifone’s Most Flexible Mobile Pay Solution B in 2017 to help the retailers and to improve the checkout experience and grow Verifone implemented Mastercard M/Chip Technology across the Verifone next generation and heritage payment solution lines in 2017 for faster and more convenient EMV transactions atcheckout Introduced Carbon 8 which is an affordable, smaller and more portable POS solution and newest member of the Carbon family in 2017 to run applications that help merchants to operate andgrow such as accounting, real-time inventory management and staffing tools Verifone introduced the M400, the sleekest and most advanced multilane payment device ever in 2017 to serve as a cornerstone of a complete vertical solution6Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the last 2yearsSource : DRAUP6

KEY STRATEGIC PRIORITIES: Ecosystem PartnershipsEcosystem Partnerships Verifone and Bluefin, the leading global payment security platform supporting gateways, processors and ISVs, announced a partnership to provide Bluefin’s PCI-validated Point-to-PointEncryption (P2PE) security solution for merchants using either Verifone’s POINT or Retail Transaction Switch (RTS) solutions in 2018 Verifone partnered with Ezetap, one of Asia’s most innovative software and payment processing players in 2018 to meet the needs of India's rapidly evolving and growing payments technologylandscape Verifone announced the partnership with Paysafe, a leading global payments provider in 2018 to deploy Verifone Connect with Carbon and Engage devices to its network of quick servicerestaurants (QSRs) and small and medium-sized businesses (SMBs) Verifone collaborated with Commerce Solutions which is a leading application developer at Money20/20 USA in 2017 to demonstrate how the innovative third-party apps integrate withVerifone’s latest solutions Verifone and Sage announced that they will work together to offer integrated point-of-sale (POS) and business accounting solutions on Verifone Carbon 8 in 2017 to help the merchants of allsizes to adapt to transforming and fast-moving business environments and changing consumer behaviour Verifone announced that they were working with SITA, the world's leading air transport IT and communications specialist in 2017 to offer a unique payment solution by integrating an airport’sshared IT infrastructure and Verifone payment devices Verifone announced their partnership with Mastercard in 2016 to help UK shoppers spread the cost of purchases with Mastercard Instalments Worldpay, a leading payments company with global reach and Verifone announced their strategic partnership in 2016 to offer the latest point-of-sale (POS) solutions and creating a seamlesspayments experience Verifone and ATIO Group, a leading provider of retail fuel technology in Mexico and other Latin American markets announced a partnership to provide integrated payments technology toMexico’s petroleum retailers in 20167Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the last 2yearSource : DRAUP7

AGENDAAccount Profile01Business & Financial Overview Details on Global Technology Footprint02Globalization Footprint Key buying locations Region wise insights for global Technology centers – Headcount,03Outsourcing Vendor Analysis04Rolodex05RecommendationsActivities and key products developed8Source : DRAUP8

Summary: Verifone – Technology Globalization Footprint Key buying centers are based out of San Francisco Bay Area, United States and Bengaluru Area, IndiaKey Buying LocationsKey EngagementsKey Stakeholders San Francisco Bay Area with 5% and Bengaluru Area, India with 14% of the engineering talent, develops a majorportion of the software for VeriFone payment products and Software development for VeriFone appliances. Design,development and testing of system software for embedded systems Design and development of hardware products and unique operating systems Development of new solutions and applications, attaining applicable certifications and approvals required for their productsand solutions, and ensuring compatibility Focus on system and service solutions to advance Verifone platform development efforts in order to increasestandardization, shorten their product development life-cycleGlen RobsonRobbie LopezEVP, Global Head of Solutions Senior Vice President SoftwarePrithvi SahooRafael CuencaVP, IT Business SystemsVP Engineering9Note: Analysis is based on the news articles, journals etc updated in October, 2018Source : DRAUP9

Bengaluru Area, India and San Francisco Bay Area, United States has 19% ofEngineering workforce are the key buying centersGlobal Technology Footprint of VerifoneNo of Centers : 1Head Count : 30 – 60No of Centers : 1Head Count : 10 – 20No of Centers : 1Head Count : 20 – 40No of Centers : 1Head Count : 40 – 80No of Centers : 1Head Count : 10 – 20No of Centers : 1Head Count : 30 – 60CanadaNo of Centers : 1Head Count : 30 – 60No of Centers : 1Head Count : 20 – 40USANo of Centers : 7Head Count : 300 – 400No of Centers : 1Head Count : 10 – 20No of Centers : 1Head Count : 40 – 80IcelandSwedenFinlandNorwayLatviaPolandIreland GermanyFranceTurkeySpainItalyUKNo of Centers : 1Head Count : 10 – 20ChinaNo of Centers : 1Head Count : 30 – 60No of Centers : 1Head Count : 40 – 100No of Centers : 1Head Count : 10 – 20TaiwanIndiaThailandNo of Centers : 1Head Count : 100 – 1201700 – 1800Total Number of Technology ZealandNo of Centers : 1No of Centers : 1Head Count : 200 – 250BrazilNo of Centers : 1Head Count : 10 – 20UruguayHead Count : 20 – 40No of Centers : 1Head Count : 100 – 130ArgentinaNo of Centers : 1Head Count : 20 – 30No of Centers : 1Head Count : 30 – 60No of Centers : 1Head Count : 20 – 40MexicoNo of Centers : 1Head Count : 20 – 30Total Number of Technology HotspotsNo of Centers : 1Head Count : 20 – 40IsraelNo of Centers : 1Head Count : 20 – 4036No of Centers : 1Head Count : 10 – 20No of Centers : 1Head Count : 10 – 20Australia2Number of Buying CentersNo of Centers : 1Head Count : 20 – 30Note: The represented data illustrates the number of centers by Geography and the bubble size is proportional to overall HC Installed in the area.Note: Global Footprint Data curated by DRAUP and updated in October, 201810Source : DRAUP10

San Francisco Bay Area, United States is the only major Hub for VerifoneNorwayStockholmHelsinki AreaTorontoLatviaLondonIcelandBeijing AreaWarsaw, MasovianWashington D.C. MetroAreaIrelandTurkeySacramento, CaliforniaAreaKassel AreaIsraelSan Francisco BayAreaMadrid AreaParis AreaGreater Atlanta AreaGreater Los AngelesPhoenix, ArizonaMilan AreaTaiwanPhilippinesTampa/St. PetersburgThailandBengaluru AreaIndonesiaMexico CitySingaporeSydneySao Paulo AreaUruguayArgentinaHUBSATELLITEOUTPOSTNew ZealandNote: The represented data has been collected from Draup Proprietary Global Footprint Database updated as of October, 2018.Note: Global Footprint Data curated by DRAUP and updated in October, 201811Source : DRAUP11

San Francisco Bay Area, United States – Technology Center Deep Dive : CenterOverview LocationSan Francisco Bay Area,United States, GermanyTechnology Headcount50-100 FTEs Involved in test planning, test execution and defect investigation for mobile, portable and standard POS devicesBuilding and maintenance of QA lab with wide range of devices and providing support for other teams runautomation test remotely and test manually in the labDesign and development of Embedded test application, Automation framework design and development,Automation framework integration, Advanced log analysis and machine learningSystem software design, development and testing for embedded systems with Linux and / or real time OS(electronic payment terminals), mainly in the areas related to communications and security protocolsDesign and development of Robotic Automation Environment for generic device testing and reducing manualtestingDevelopment of a C# server as an Automation service layerDevelopment of design language and Verifone's Mobile payment solutions (mPOS)Design and delivery of Verifone Terminal Devices, Operating Systems, Middleware and Applications, Cloudservices and customer technical supportCenter LevelHub;HQTop leadersGlen RobsonAverage Salary Cost / FTEUSD 120K / AnnumEVP, Global Head of SolutionsMajor Engineering Talent ProfilesRichard CharSVP Global Business andCorporate DevelopmentSoftware EngineersSoftware Developer12Note: The above analysis is based on the DRAUP’s Executive Module, updated in October, 2018Source : DRAUP12

San Francisco Bay Area, United States – Technology Center Deep Dive: TechnologyLeadershipTechnology Leadership7 Key Executives (Including EVP, SVPs, VPs and Director)Top LeadersGlen RobsonEVP, Global Head of SolutionsVP’sDirectorRichard CharSVP Global Business and CorporateDevelopmentMatt FischSVP Global Solutions EngineeringPrithvi SahooSachin DoshiIan LewisVP, IT Business SystemsVice President, Software PlatformVice President NPI EngineeringBehyad GhavimiDirector Global Solution Integration13Note: The above analysis is based on the DRAUP’s Executive Module, updated in October, 2018.Note: Executives mentioned above are some of the key Technology Leaders in the organization and not exhaustive. Exhaustive list will be available in Draup PlatformSource : DRAUP13

Globalization Technology Footprint (1/8)LOCATIONTECHNOLOGYHEADCOUNTDETAILSBuying Centers200 – 300 Development of major portion of the software for VeriFone payment products and Software developed for VeriFoneappliancesTampa/St. Petersburg,Florida Area, UnitedStates100 – 150 Design and development of Site Asset Reporting feature which collected various configuration related information forVerifone's new POS platform for petro and convenience stores Design and built an UI for the same feature using Google Web toolkit.Philippines100 – 150 Design and code software for payment system it also develops cross-platform software based on established teamstandards and guidelines for product support engineersIsrael100 – 150 Design, development and implementation of a commerce enablement platform including enterprise systems such as VAS(value added services) Gateway, global users management and logging and monitoring systemsSan Francisco Bay Area,United States50 – 100 Development of cloud based solution to serve media to thousands of Taxi Media passenger interface module worldwideand develops Android POS reference app for Carbon 10 platformBengaluru Area, India14Note: Global Footprint data curated by DRAUP and updated in October, 2018. Technology Headcount includes research and product engineering talentSource : DRAUP14

Globalization Technology Footprint (2/8)LOCATIONTECHNOLOGYHEADCOUNTDETAILSSacramento, CaliforniaArea, United States50 – 100 Development of core Verifone solution that protects against the threat of unauthorized software being installed alongsidelegitimate payment applications while a terminal is in the fieldUruguay50 – 100 Development of software solutions and provides support for the operation of sale terminals (POS) worldwideLatvia50 – 100 Development of payment application for Iceland and Denmark Development of Next Generation POS (Point Of Sale) terminal, system components for Linux Based POS terminalIreland50 – 100 Design, development, testing and support of embedded Linux and proprietary OS based software stacksTaiwan50 – 100 Hardware design of EMVCo Contactless Level 1 Reader. Design and development of RF circuit and antenna (2G,3G, GPS, WiFi/ BT)15Note: Global Footprint data curated by DRAUP and updated in October, 2018. Technology Headcount includes research and product engineering talentSource : DRAUP15

Globalization Technology Footprint (3/8)LOCATIONTECHNOLOGYHEADCOUNTDETAILSWarsaw, MasovianDistrict, Poland50 – 100 Design, development and implementation of software in C and C for point of sale terminals (credit cards terminals) forbanking and retailGreater Atlanta Area,United States30 – 50 Development of web facing applications using OWASP security principals of software design and develop host solutionsfor the PME payment applicationSao Paulo Area, Brazil30 – 50 Development of applications, libraries and Application development for VeriFone PIN-Pads and terminalsSingapore30 – 50 Design and development of contactless reader for payment transaction Designing embedded security payment terminals with Arm 9,11, Cortex M3,M4,M0 cores interfacing with NAND, DDR3,LPDDR, etc.Indonesia30 – 50 Design of POS terminal application software modules. POS terminal application & application software development. Software development on EFT-SEC Terminal Line Encryption, NSICCS, China Union Pay16Note: Global Footprint data curated by DRAUP and updated in October, 2018. Technology Headcount includes research and product engineering talentSource : DRAUP16

Globalization Technology Footprint (4/8)LOCATIONTECHNOLOGYHEADCOUNTDETAILSToronto, Canada Area30 – 50 Design and development of core features for EMV integration and software solutions that provides both contact andcontactless supportBeijing Area, China30 – 50 Design and development of software product related drivers, libraries and applications Design and development of payment application softwareTurkey30 – 50 Software design and development of POS device for Banking applications and application Development on POSTerminals with OOP C Design and development of Payment Manager, Manual Transaction, Payment Service for Verifone Android TabletSolution For Carbon DeviceParis Area, France30 – 50 Development of software on E-commerce payment platform and Application Development for terminal paymentapplicationsMexico City Area,Mexico30 – 50 Financial software development EMV contact and contactless ISO 8583 IP Communications and involved in thedevelopment of Terminals Point of Sale in C/ C 17Note: Global Footprint data curated by DRAUP and updated in October, 2018. Technology Headcount includes research and product engineering talentSource : DRAUP17

Globalization Technology Footprint (5/8)LOCATIONTECHNOLOGYHEADCOUNTDETAILSSydney, Australia20 – 40 Development of Payment solutions for various Australian banks and application development for VeriFone point-of-saleterminalsArgentina20 – 40 Development and implementation of applications for acceptance of credit chip card (EMV) in point-of venta, credit cardpayment in taxi fleets, payment securely self-service terminalsKassel Area, Germany20 – 40 Development of software for secure electronic card paymentsHelsinki Area, Finland30 – 50 Design and development of payment systems related Web Services, payment switches, back-end systems processingcredit card payments and integrations into international card acquirersNew Zealand20 – 40 Development of EFTPOS payment switch. Development of iOS SDK for driving payment transactions through an E105 unit18Note: Global Footprint data curated by DRAUP and updated in October, 2018. Technology Headcount includes research and product engineering talentSource : DRAUP18

Globalization Technology Footprint (6/8)LOCATIONTECHNOLOGYHEADCOUNTDETAILSLondon, UnitedKingdom10 – 20 Development of PAY ware

Verifone introduced EZ – Receipt, a software cloud -based technology that generates an electronic receipt at the pump which creates a fast and simple pay -and-go payment experience Verifone and POS Portal introduced Out -of-the-Box which is a Secure Payment Solution for small busi