- BlackBerry Storm vs. the iPhone
- 2008 IT industry graveyard
- Top 10 worst uses for Windows
- Economic crisis means double duty for IT pros
- BlackBerry Storm, RIM's first touchscreen device, rolls in
Newsletters | Podcasts | Chats | Opinions | RSS Feeds | This Week In Print | IT Careers | Community | Reports | Downloads | Slideshows | New Data Center
Partner Sites:Application Performance Solutions | App Performance | Networking Solution | SafeGuard Enterprise Solution Center | SOA | Test your Web Filter | Value of WDS
A Mountain View, Calif., electronic payment company plans to buy CardSystems, the transaction processing company which had data on 40 million customers compromised when hackers broke into its servers recently. On Friday, CyberSource announced that it has signed a letter of intent to acquire the CardSystems assets, a transaction that could close by year's end.
The deal gives CyberSource an opportunity to expand into new areas beyond the e-commerce transaction services that have built the 175 person company, said Bruce Frymire, a company spokesman. "It brings a lot to CyberSource," he said. "It's a processing platform, which we have not had at this point. It also gives us retail point of sale processing."
CardSystems is used by 120,000 merchants to process more than $18 billion worth of transactions annually, Frymire said.
Online thieves were able to break into CardSystems' Tuscon, Ariz., operations center and steal credit card information from the company's servers. The intrusion, which was disclosed in June, was detected after fraudulent charges began appearing on some of the stolen accounts.
CardSystems' CEO John Perry has since admitted that the stolen records were improperly kept, and his company's business has taken a hit following the disclosure. Both American Express and Visa U.S.A. have said that they intend to sever their relationship with CardSystems by the end of October.
Whether or not the planned CyberSource acquisition will affect these defections may be a factor in the deal. "Certainly that would be a matter of serious interest to us," Frymire said of the impending departures.
CardSystems and CyberSource are working to ensure that merchants experience no disruption of service, he added.
CyberSource says the transaction is subject to further due diligence and may also be subject to regulatory approval. Frymire would not say how much CyberSource expected to pay for the privately held Atlanta company.
Rss FeedRss Feed
| NetworkWorld, Inc. | About Network World, Inc. | Advertise | Careers | Contact us | Terms of Service/Privacy | Reprints and links | Partnerships | Press room | Subscribe to NW |
| IDG, Inc. | CIO | Computerworld | CSO | Demo | GamePro | Games.net | IDGconnect.com | IDG World Expo | Infoworld | JavaWorld.com | LinuxWorld.com | MacUser | Macworld | PC World | Playlistmag.com | The Industry Standard | IDG List Services | IDG TechNetwork |
 |
Copyright © 1994-2008 Network World, Inc. All rights reserved. |
Partner Content
Brilliantly simple security and control solutions for email, web and endpoint
www.sophos.com
Stopping data leakage
Learn how to exploit your current security investment to control the information that flows into, through and out of your network.
Download the white paper.
Why detection rates aren't enough
Evaluating endpoint security products is a time-consuming and daunting task. Learn the six critical questions you need to ask prospective vendors to get the right endpoint solution.
Download the white paper.
Applications: taking back control
Employees installing unauthorized applications is a growing threat to business security and productivity. Cost-effectively reduce this threat by integrating control into your malware protection.
Learn more today.
Comment