17 August 2017
visit www.avoka.com

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

07 August 2017  |  3786 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  |  5649 views  |  1 comments | 3 tweets | 5 linkedin
Fiserv to acquire Monitise for £70 million

Fiserv to acquire Monitise for £70 million

13 June 2017  |  8230 views  |  2 comments | 20 tweets | 20 linkedin
Monitise ends plan to sell content biz

Monitise ends plan to sell content biz

01 June 2016  |  5504 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  |  6412 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  |  5473 views  |  1 comments | 5 tweets | 3 linkedin
Visa Europe to sell Monitise stake

Visa Europe to sell Monitise stake

08 July 2015  |  6511 views  |  0 comments | 12 tweets | 10 linkedin
Monitise shifts strategy as revenues dip

Monitise shifts strategy as revenues dip

06 July 2015  |  4248 views  |  0 comments | 6 tweets | 4 linkedin
Santander and Monitise form fintech venture

Santander and Monitise form fintech venture

01 July 2015  |  9715 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  |  5845 views  |  2 comments | 3 tweets | 3 linkedin
Monitise losses widen as suitors circle

Monitise losses widen as suitors circle

17 February 2015  |  4824 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  |  11221 views  |  4 comments | 15 tweets | 12 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comdownload the paper nowvisit www.worldpaymentsreport.com

Who is commenting?

Top topics

Most viewed Most shared
Coinbase raises $100mCoinbase raises $100m
10507 views comments | 14 tweets | 14 linkedin
DBS Bank launches online car selling marketplaceDBS Bank launches online car selling marke...
9910 views comments | 13 tweets | 11 linkedin
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
9863 views comments | 8 tweets | 15 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
8224 views comments | 1 tweets | 3 linkedin
hands typing furiouslyCompliance: Overcome the data deficit
7689 views 0 | 1 tweets | 8 linkedin