Monitise, the technology and services company delivering mobile banking, payments and commerce networks worldwide, has announced that it has entered into an agreement to acquire Clairmail, a US provider of mobile banking and payments solutions, further enhancing Monitise's position in the fast expanding mobile money market.
The acquisition enhances Monitise's position in mobile money globally, creating a pure play mobile money company of unprecedented scale in the US, which is expected to be the world's largest mobile banking and payments market. It also provides Monitise with unique bank-grade technology capabilities, network partnerships and R&D expertise.
Currently, the combined businesses provide mobile money services to 13 million registered end consumers via some of the world's leading financial institutions such as the Royal Bank of Scotland Group, two of the largest card issuers in the US, Lloyds TSB, PNC Bank, U.S. Bank and Fifth Third Bank among others. Together the combined technology platforms process billions of transactions a year and over $10 billion of payments and transfers on a current weekly annualised basis.
Clairmail is growing rapidly with revenues in 2011 up by 90% year on year. The acquisition consideration will be satisfied entirely by the issue of up to 312,787,144 new Ordinary Shares representing approximately 26.5% of the fully diluted share capital of the enlarged company, post completion, and values Clairmail at approximately $173 million (£109 million), based on Monitise's share price of 35p as of the close of trading on 23 March 2012. The deal is conditional upon US regulatory and shareholder approvals. It is expected that the acquisition will be completed before the end of the financial year 2012.
The acquisition provides a step change in growth potential for the company through direct sales in North America. This, combined with Monitise's existing Visa Inc. and FIS strategic partnerships, provides the enlarged group with a major position in the US and three commanding routes to market.
The Clairmail management team and employees are expected to remain with the group with Pete Daffern CEO, of Clairmail, working closely with Frank D'Angelo, executive chairman at Monitise and former executive vice president of payment solutions at FIS, as Monitise focuses on accelerating its significant growth opportunity in the US.
The Enlarged Group has 600 staff across North America, Europe, the UK, Asia-Pacific, Africa and India.