Fiserv to acquire Monitise for £70 million
13 June 2017 | 10370 views | 2
Fiserv is offering to buy long-struggling UK mobile banking firm Monitise at 2.9 pence per share, valuing the company at £70 million.
With over 400 employees, Monitise reported annual revenues of £67.6 million for the financial year ending 30 June 2016, but it has yet to turn a profit in its 13-year lifespan.
The business has effectively been on the block for over two years following repeated revenue warnings and widening losses as it struggled to keep pace with the fast-changing mobile banking market.
The Fiserv offer represents a premium of approximately 26.1% to the Closing Price of 2.30 pence per Monitise Share on 12 June 2017. The price is a big comedown from the firm's glory days, which saw it reach a valuation of £2 billion amid soaring expectations in the market for mobile banking.
Lee Cameron, chief executive officer, Monitise, says: "Fiserv is well-positioned to carry this business forward given its strength in digital banking and extensive client network. Following the completion of this transaction, we are confident that Monitise clients will be served well by Fiserv and its long-standing commitment to creating value for its clients."