UK IT services group Morse has sold its mobile payments and data services subsidiary, MChex, to Stream Group for a maximum total consideration of £1.5 million.
Under the deal Stream will pay an initial cash consideration of £267,197 together with a debt settlement of £482,803 funded from its own cash resources. A maximum deferred consideration of £750,000 will be paid in cash subject to the launch of certain services before 30 September 2005.
In the period from 8 January 2003 to June 2004, MChex incurred losses, before tax of £874,018 and had net liabilities of £872,818 as at that date.
Stream, which supplies mobile content, says the MChex acquisition provides
it with direct connections to all five UK mobile telephony networks, giving it much improved margins on its own mobile traffic.
The group also announced that MChex has won a contract to be the exclusive provider of wholesale consumer message delivery and billing services to the mobileATM initiative, the joint venture formed by Morse and Link slated for launch in the first half of the year. The service will enable customers to view bank accounts and purchase air time from their hand sets.
Gordon Robson, executive chairman of Stream, says: "The mobilisation of banking services marks an incredibly important moment for the mobile industry and Stream is now in an excellent position to capitalise upon this."