18 October 2017

Fiserv lifts offer price for Monitise in bid to woo reluctant shareholders

07 August 2017  |  4639 views  |  1 FXall

Fiserv has raised its offer for the acquisition of ailing UK mobile outfit Monitise by £5 million to £75 million in a last-ditch attempt to convince recalcitrant shareholders to come onboard.

Shareholders in Monitise had railed against the original 2.9 pence per share price offered by Fiserv, threatening to withdraw support for the bid in the absence of a more meaningful valuation.

While Visa and Santander both agreed to sell their holdings at the initial price, representing approximately ten percent of Monitise's ordinary share capital, Fiserv has been moved to raise its offer to 3.1 pence per share in a final bid to win over support for the takeover.

Fiserv points out that in its latest trading update at end-July, that revenue for Monitise continues to decline and outstrip cost-cutting initiatives. Having failed to find a single buyer for its 'next-generation' FINkit software package, the company warned the market that revenues for 2018 are expected to dip below year-end 2017 takings.

"Furthermore, on a divisional basis, all business units (excluding Content) experienced revenue declines for the financial year ended 30 June 2017 as compared to the prior year period and there were no FINkit contracts signed in the period," states Fiserv.

With cash balances dwindling, the Monitise board have stated that were the acquisition not to take place, the company will need to consider "raising further capital, the divestment of businesses, and the overall strategy of the Group".

Fiserv says the terms laid out represent its final offer for the group and will not be raised unless a third party steps in with an improved price.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 09 August, 2017, 13:57

Good job Monitise. The gap between its peak valuation and current valuation is now only £1.925B.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Monitise failings exposed as Fiserv lays down terms

Monitise failings exposed as Fiserv lays down terms

03 July 2017  |  6039 views  |  1 comments | 3 tweets | 5 linkedin
Fiserv to acquire Monitise for £70 million

Fiserv to acquire Monitise for £70 million

13 June 2017  |  8942 views  |  2 comments | 20 tweets | 20 linkedin
Monitise ends plan to sell content biz

Monitise ends plan to sell content biz

01 June 2016  |  5627 views  |  3 comments | 2 tweets
Monitise shares shift up on talks of content business sale

Monitise shares shift up on talks of content business sale

04 March 2016  |  6504 views  |  1 comments | 3 tweets
Monitise CEO Buse to step down as losses rack up

Monitise CEO Buse to step down as losses rack up

09 September 2015  |  5545 views  |  1 comments | 5 tweets | 3 linkedin
Visa Europe to sell Monitise stake

Visa Europe to sell Monitise stake

08 July 2015  |  6612 views  |  0 comments | 12 tweets | 10 linkedin
Monitise shifts strategy as revenues dip

Monitise shifts strategy as revenues dip

06 July 2015  |  4320 views  |  0 comments | 6 tweets | 4 linkedin
Santander and Monitise form fintech venture

Santander and Monitise form fintech venture

01 July 2015  |  9885 views  |  0 comments | 15 tweets | 14 linkedin
Lukies out as Monitise pulls back from sell off

Lukies out as Monitise pulls back from sell off

25 March 2015  |  5934 views  |  2 comments | 3 tweets | 3 linkedin
Monitise losses widen as suitors circle

Monitise losses widen as suitors circle

17 February 2015  |  4970 views  |  0 comments | 5 tweets | 4 linkedin
Monitise puts itself up for sale;  warns on full year revenues

Monitise puts itself up for sale; warns on full year revenues

22 January 2015  |  11496 views  |  4 comments | 15 tweets | 12 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.innotribe.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15271 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8466 views comments | 16 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7964 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7433 views comments | 13 tweets | 8 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6589 views comments | 8 tweets | 16 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job