Visa Europe is to invest £24.7 million (USD40
million) in mobile payments provider Monitise.
The deal makes Visa Europe an 8.8%
share-holder in the company, and will see CEO Peter Ayliffe join
the Monitise board as a non-executive director.
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The investment will take the form of 70.5
million new shares issued at 35 pence per share.
The announcement was made at the same time as
Monitise announced its intention to buy out FIS’s 51% stake in
Monitise Americas, a joint venture between Monitise and FIS
subsidiary Metavante.
The sale values Monitise Americas at £29.4
million (USD46 million).
The move to evolve the joint venture into a
wholly-owned subsidiary reflects Monitise’s strategy in the UK,
where it structured a similar deal with Vocalink in 2009.
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By GlobalDataIn consideration for the purchase, Metavante
will be issued with a 3.3% stake in Monitise plc. Monitise Group
CEO Alastair Lukies said the deal “ensures that
Monitise is ideally placed to play a leadership role in the North
American mobile money market.”
Speaking of Visa’s increased investment, Lukies
said:
“Visa Europe’s
investment in Monitise, coupled with a deepening relationship eight
months after our two companies first entered into a partnership,
establishes our role as the platform of choice for mobile money
services in Europe.
“We are excited by the opportunities ahead for
Monitise and the global mobile money industry.”
