NEW YORK (TheStreet) -- "VeriFone Systems (PAY) reported an amazing number last night," according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio. That's why he would love for VeriFone to merge with another online payment processing company.
According to Cramer, if eBay (EBAY) were to spin off its PayPal division -- something that activist hedge fund manager Carl Icahn really wants -- PayPal could acquire VeriFone. Now that VeriFone has "its act together," it becomes a viable takeover candidate, he said.
A spun-off PayPal that acquires VeriFone would not lose its business relationship with eBay. But with the acquisition, it would be able to enter bricks-and-mortar retail in a meaningful fashion.
Starbucks (SBUX), which is also making strides in the mobile payment processing world, could be a prospective buyer of VeriFone, too, he said.
His conclusion? "Buy VeriFone," he said.- - Written by Bret Kenwell in Petoskey, Mich.