News blog
Monitise
- BY: Andrew Hore |
- POSTED: 30/06/2009 |
Mobile banking technology developer Monitise has signed a global alliance with electronic payments group Visa International worth $13m over five years.
Partnering with Visa gives Monitise even more credibility in the market.
This sparked a 1.375p rise in the share price to 6.625p, which values Monitise at £22.5m. Visa, UBS and Capital Group are subscribing for shares at 7p each. This will raise £5.1m before expenses. That will give Monitise £15m in cash.
Visa will own 14.4% of Monitise, while UBS and Capital, which were existing shareholders, will own 12.9% and 5.8% respectively. Visa will also have a board representative.
Monitise will partner Visa in its mobile activities, including mobile money transfer and payments. Visa wants to build up a network of more than 4bn mobile devices around the world. The agreement should also generate service and development fees on top of the suggested $13m contract value.
Monitise expects revenues to increase 80% to £2.7m in the year to June 2009. That is slightly lower than expectations but the loss should be lower than forecast. The figures will be published on 25 August 2009.
Monitise expects to have 1m customers by the end of 2009. Joint marketing deals with banks and Carphone Warehouse should boost UK numbers and 90 financial institutions have been signed up in North America. Additional deals should widen the geographic coverage of the business.
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