The offer values the firm at £70m, representing a 26.1% premium to yesterday's 2.30p closing price
Companies: Fiserv, Inc., Monitise
US financial technology Group Fiserv announced on Tuesday that it has agreed to acquire AIM-listed financial services tech firm Monitise for about £70m.
The offer values the entire share capital at £70m, representing a 26.1% premium to yesterday's 2.30p closing price, and a 24.2% premium to the volume weighted average closing price of 2.34p.
Shares in Monitise jumped 23% to 2.87p early on Tuesday before falling back slightly to 2.83p.
Monitise, which joined the AIM market in 2007, focuses on digital transformation at banks and financial services firms through mobile banking and payments focused product offering. It reported annual revenues of £67.6m last year.
CEO of Fiserv Jeff Yabuki said Monitise had been a pioneer and innovator in digital banking for more than a decade. He added that by combining talented staff and advanced technology of Monitise, with the "leading digital solutions" from Fiserv, it would enable Fiserv to expand its clients' ability to provide differentiated experiences to their customers.
Monitise Chairman Peter Ayliffe said the Board had been reviewing its medium to long-term options following the simplification and stabilisation of the Group and had reached the decision to recommend the offer to shareholders:
"Recognising the growth challenges we continue to face, we believe that Fiserv's all-cash offer provides shareholders with certainty of value at a level in excess of the risk adjusted prospects of the Monitise Group on a standalone basis. In addition, Fiserv as a large and diversified international financial technology business, has the ability to accelerate the growth of the business through greater scale, investment, and routes to market."
While the CEO of Monitise Lee Cameron said he was proud of the people and tech across Monitise, adding that Fiserv is well-positioned to carry the business forward due to its strength in digital banking and its "extensive client network".
"Following the completion of this transaction, we are confident that Monitise clients will be served well by Fiserv and its long-standing commitment to creating value for its clients."