VeriFone shares rise on DC taxi meter contract

Wed Jul 11, 2012 7:41pm IST

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(Reuters) - VeriFone Systems Inc's (PAY.N) shares rose as much as 11 percent after it won a five-year contract to become an exclusive vendor for installation and support of Taxicab Smart Meter System project from the District of Columbia Taxicab Commission.

The contract is valued between $35 million to $45 million with advertising revenue and will integrate 6,500 district cabs with VeriFone's systems, the company said in a statement.

The company said the deal will increase its taxi media footprint by 23 percent to over 35,000 in the United States, resulting in over 10 billion advertising impressions annually.

Shares of the company touched a high of $35.54 in early trading on Wednesday. The stock was one of the top percentage gainers on the New York Stock Exchange.

(Reporting By Aurindom Mukherjee in Bangalore; Editing by Maju Samuel)

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