Partnerships / Acquisitions

Monitise Shareholders Back Sale To Fiserv

Fiserv announced late last week that it received irrevocable undertakings from shareholders at Monitise to vote in favor of a deal in which Fiserv has made a cash offer for Monitise at a price of 2.9 pence per share, valuing it at £70 million ($88 million).

According to a Finextra report detailing the news, which cited Monitise, the companies announced that Fiserv and Monitise have received a vote from shareholders in favor of the acquisition from Fatih Isbecer in respect of 61,850,028 Monitise shares, representing approximately 2.67 percent of Monitise’s ordinary share capital and a letter of intent from Visa, Inc. in respect of 55,946,391 Monitise shares, representing approximately 2.41 percent of Monitise’s ordinary share capital.

Together with the other irrevocable undertakings received by Fiserv as disclosed in the offer announcement, Fiserv and Monitise have now received irrevocable undertakings and letters of intent to vote in favor of the acquisition in respect of aggregate holdings of 121,380,745 ordinary shares, which represent approximately 5.24 percent of Monitise’s ordinary share capital.

Last month, after two years of difficulty navigating a rapidly evolving mobile banking environment, long-struggling U.K. financial services firm Monitise has at last found a buyer. Fiserv has offered to buy out the 400-person firm. Monitise has never reported a profit in its 13 years on the market — though it did report annual revenues of £67.6 million for the financial year ending June 30, 2016.

Fiserv’s £70 million offer represents a 26.1 percent premium on Monitise’s share price as of the close of markets. On its best day, Monitise was valued at £2 billion.

“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,” Monitise’s CEO Lee Cameron noted in a statement.

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