Monitise has announced that it has taken full ownership of Monilink Ltd, the UK 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 £1.5 million in cash over three years for debt-free, 100% ownership of Monilink. The deal will simplify and streamline Monitise’s group structure.
Until now Monitise and VocaLink had held equal 50% 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 banking and payments infrastructure, in return for services fees. It could also earn up to £1.5 million 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 % of UK current account holders, including HSBC, Lloyds TSB, NatWest, RBS and Alliance & Leicester. Duncan McIntyre, chairman of Monitise plc scomments: “This deal, alongside our recently announced global alliance with Visa International, represents excellent news for Monitise (MPW 135). It gives us full ownership and control of a rapidly growing business in an exciting marketplace. “