Digital banking specialists Monitise Plc have agreed to a multi-million pound takeover approach from financial tech company Fiserv.
Monitise Plc is set to become the latest acquisition completed by leading financial tech company Fiserv. This deal will follow their $200 million purchase of ACI Worldwide’s financial services and $265m deal to buy HP’s Convenience Pay last year.
The company was an early player in the growing mobile banking industry and helped many leading banks to offer their first mobile banking services. As a result, it was voted as one of the most innovative and fastest growing companies around between 2011 and 2014.
Traded on the AIM market, Monitise’s value peaked at £2 billion in its prime. However, interest has since dipped and huge losses have occurred as a result. The company lost £227.4m in 2015 and £243.1m in 2016.
These poor results have caused the Monitise value to drop. It has now lost 95% of its value in just three years. As a result, Fiserv will pay just £70m to buy the company. That values each share at £0.03 each.
What will Fiserv gain from acquiring Monitise Plc?
Despite its falling worth, Fiserv thinks that there is value in buying Monitise. They hope to use their FINkit cloud-based banking platform to begin making their own next gen platform.
The deal isn’t set in stone. The Monitise board have agreed that the deal should go ahead. However, Fiserv are still waiting to receive a decision from shareholders, who will have the final say.
Although, Fiserv are confident that it will go ahead. If so, the purchase will be completed in Q3 of 2017.
Investors are predicting a change of fortune for Monitise. Shares climbed by 23% following the news, as a result of Fiserv’s past successes and stability.