Monitise to buy Clairmail for £109 million
UK mobile money technology provider Monitise has made a £109 million all share acquisition for Clairmail, a US provider of mobile banking and payments solutions.
Alastair Lukies, CEO of Monitise, said that the deal would be “transformational” for Monitise, its shareholders and customers. Lukes added that the deal “substantially accelerates” Monitise’s position in the US, where the company already has a partnership with FIS and Visa Inc., and contracts with PNC Bank, US Bank and Fifth Third Bank.
Although the acquisition appears to bolt together two similar product sets, a statement from Monitise said there were “revenue synergies” across the combined customer base. It said the combination would give Clairmail customers access to Monitise’s “enhanced product functionality”, and deliver the benefits of Monitise’s network approach to US customers.
A press statement said “a detailed integrated plan is in place” although none of those details were provided.
The combined company would have reported 2011 revenues of £35 million, and expects combined 2012 revenues to close at £100 million. Monitise expects the enlarged group to be EBITDA positive by June 2013. The share purchase consideration would represent 26% of the diluted share capital of the new company.