TASE-traded Lipman Electronic Engineering has signed a contract to supply 20,000 NURIT 3020 terminals to US company Concord EFS (Nasdaq: CEFT). The terminals will be delivered over the next 18 months. Financial details of the deal were not disclosed, but market sources estimated it at $5-6 million.
Under the contract, Lipman will provide Concord EFS with a comprehensive payment solution. Among other things, the solution includes electronic documentation of the buyer's signature, through the use of a very high-speed modem and expanded memory.
Concord EFS is a leading clearance company operating all over the US. The company cleared nine billion transactions in 2001, and expects to clear 10.5 billion in 2002.
The Class A classification its customers have awarded Lipman's products requires a complete customer warranty, support, and current maintenance of the products. Other classifications involve a lower level of guarantee than Lipman's. The Class A classification also requires the customer to purchase key management services from Lipman, so that it can provide complete support for customers buying its products.
Lipman USA president and CEO Mony Zenou said, "The contract with Concord EFS proves Lipman's technological capabilities. Lipman is expanding its grip in the US market, even though that market is at a standstill.”
Published by Globes [online] - www.globes.co.il - on September 18, 2002