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24 Aug 2009 07:00
MONITISE TAKES 100% OWNERSHIP OF ITS UK JOINT VENTURE 'MONILINK'
Monitise plc (LSE: MONI.L) has announced today that it has taken full ownership of Monilink Ltd, the UK's leading mobile banking and payments network.
It has bought out joint venture partner VocaLink to take full ownership of its business operations in its home market, including all future revenues, as the global mobile money industry accelerates.
Under the deal, Monitise will pay an initial £1.5m in cash over three years for debt-free, 100 per cent ownership of Monilink. The deal will simplify and streamline Monitise's group structure.
Until now Monitise and VocaLink had held equal 50 per cent stakes in Monilink, which has recorded substantial growth in consumer uptake in recent months.
VocaLink will continue to provide Monilink with full access to its world-leading banking and payments infrastructure, in return for services fees. It could also earn up to £1.5m in further consideration, subject to Monilink exceeding financial performance targets, between now and 30 June 2013.
Through Monilink, Monitise supplies full mobile banking and payments services to banks representing over 55 per cent of UK current account holders, including HSBC, Lloyds TSB, NatWest, RBS and Alliance & Leicester.
Going forward, Monilink will operate under Monitise's worldwide Mobile Money banner. Tomorrow (Tuesday) Monitise plc will be issuing its preliminary results for the year to 30 June 2009.
Duncan McIntyre, chairman of Monitise plc said: "This deal, alongside our recently announced global alliance with Visa International, represents excellent news for Monitise.
"It gives us full ownership and control of a rapidly growing business in an exciting marketplace.
"The acquisition streamlines the overall Monitise group structure, and we look forward to continuing to provide world class services to our customers."
Alastair Lukies, chief executive officer of Monitise plc, added: "Our partnership with VocaLink has established Monitise's world-leading patented technology as the platform of choice for some of the world's largest and most successful companies.
"We look forward to continuing our excellent relationship with VocaLink and to further establishing the UK at the forefront of the mobile money industry."
Martin Wilson, chief commercial officer of VocaLink, said: "Having pioneered electronic payments, many of the world's banks and their corporate customers rely on VocaLink to meet their transaction needs.
"Our commitment to mobile banking remains strong and we shall support Monitise's growth with quality systems and infrastructure."
Further Financial Information
For the year ended 30 June 2008, being the latest audited accounts, Monilink Ltd recorded a loss before tax of £5.7m and had net liabilities of £9.3m.
On completion the business had an estimated net asset figure of £1.2m following capitalisation of the debt, and monthly run rate revenues of £100k.
There are no further disclosures to be made for this transaction under Schedule 4 of the AIM rules.
Notes
Monitise has created the world's first mobile money networks, which allow customers of multiple banks and mobile operators to perform banking and payment transactions directly from their mobile handset.
Current key partners include VocaLink, Metavante, Visa, Standard Chartered Bank, PCCW, HSBC, Lloyds TSB, first direct, Alliance & Leicester, Royal Bank of Scotland, NatWest, Carphone Warehouse, Vodafone, Orange, O2, T-Mobile and 3.
It signed a five year agreement, worth a minimum of US $13 million, in June 2009 to supply its mobile money platform to Visa Inc's 1.7 billion card-holders.
Monitise's rapid growth in recent months saw 100,000 new customers register for its services in May, and it is on target to reach a total of one million subscribers by the end of 2009.
Monitise is currently working with international partners to deliver similar safe, secure mobile banking and payment services in territories worldwide, including ICICI Bank in India.
For PR inquiries please contact:
Adam Powell, Bell Pottinger Business & Brand Tel: +44 (0) 20 7861 2514
apowell@bell-pottinger.co.uk Mobile: +44 (0) 7753 832916
Lucy McCartney, Bell Pottinger Business & Brand Tel: + 44 (0) 20 7861 2507
lmccartney@bell-pottinger.co.uk Mobile: +44 (0) 7944 611570
For financial PR inquiries please contact:
Haya Herbert-Burns, FD Tel : +44 (0) 20 7831 3113
Erwan Gouraud, FD Tel : +44 (0) 20 7831 3113
Alastair Lukies, Monitise Group, chief executive officer Tel: +44 (0) 20 7868 5200
Tom Spurgeon, Monitise Group, chief financial officer Tel: +44 (0) 20 7868 5200
Patrick Robb, Director, Corporate Broking, Investec Bank plc Tel: +44 (0) 20 7597 4000
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