Lipman Electronic Engineering continues to release good news. The company announced today that its US subsidiary, Lipman USA, had signed a $20 million OEM agreement with US company Axeus. Last month, Lipman, a manufacturer of advanced payment and clearing systems, announced it had signed an MOU with a large European company for setting up a joint venture to develop, market, and sell point-of-sale (POS) credit-car terminals.
According to Lipman’s announcement, Axeus, considered one of the leading US providers of solutions for small businesses, will market and sell its POS terminals to leading US retail chains. The announcement added that, under the agreement signed by the two companies, Axeus would market a family of products, developed on the basis of the Nurit 2059I technological platform, under a new Royal brand name. The terms of the deal include a commitment to buy about 60,000 units of various types over four years.
Axeus announced it was planning to position the terminals as off-the-shelf products, offering a combined solution and allowing various types of payment, such as cash and e-payment. The company added that at the first stage, the product would be marketed to leading retail chains in the US.
Lipman's stock has surged nearly 70% to NIS 60 in the past month and a half, reflecting a company value of $155 million. Lipman manufactures advanced payment and clearing products for magnetic cards, smart cards, and systems based on cellular communications and telephone lines, for banks and credit companies. The company provides a wide range of clearing products combining software, hardware and communications that offer customers added value and allow them to reduce their expenses.
Lipman’s third-quarter net profit was NIS 14.9 million, compared with NIS 8.1 million in the corresponding quarter last year and NIS 2.6 million in the previous quarter. The company’s revenue was NIS 69 million, compared with NIS 68 million in the corresponding quarter last year and NIS 56 million in the previous quarter.
Published by Israel's Business Arena on 9 December, 2001