Facing falling stock prices and forecasting lower than expected revenue in 2015, mobile banking firm Monitise has announced that it will be putting itself up for sale.
The U.K.-based mobile banking firm is in the midst of a transition to a product-based recurring revenue model, an effort that so far has yielded a 47 percent drop in license revenue to around $6.6 million. Development and integration revenue also took a tumble – down 13 percent to around $33 million. For 2015 in total, Monitise is forecasting a full year EBITDA loss of $60-76 million, although the company does anticipate being EBITDA profitable in FY 2016.
Given its recent share price weakness and the less than glowing feedback they’ve been receiving from shareholders, Monitise says it is now undertaking a strategic review of its options.
The Board has appointed Moelis & Company as its advisor and is publicly soliciting expressions of interest for a merger or full-scale takeover from potential suitors.
“The Board believes that the company has an exciting future as an independent business, however it recognises that there may be other businesses which could leverage Monitise’s capabilities for digital commerce enablement to significantly accelerate the growth of the business and take maximum advantage of the growth opportunities in the market today. The strategic review is expected to be all encompassing and will include consideration of corporate transactions and stock market listing options,” the firm said in a release statement.