Monitise’s share price has suffered a double-digit drop today after the mobile payments firm concluded its strategic review after it could not find a buyer.
In January, Monitise mandated Moelis & Co and Canaccord Genuity to conduct a sales process…
Monitise’s share price has suffered a double-digit drop today after the mobile payments firm concluded its strategic review after it could not find a buyer.
In January, Monitise mandated Moelis & Co and Canaccord Genuity to conduct a sales process prompted by the company’s poor performance and said it had received a number of expressions of interest from potential suitors.
Today, Monitise said its board had decided that “none of these indicative and non-binding proposals fully recognised the longer-term value of Monitise”.
The company has reiterated that it expects a loss of £40m to £50m this year.
In a statement, Monitise said: “The expressions of interest were also structured in such a way that there was considerable uncertainty over their ultimate deliverability.”
Oracle, IBM and payment technology giant FIS were all reported to have looked at a possible acquisition of the company.
Monitise will now pursue a standalone strategy which will focus on sales in EMEA and North America, streamlining the business, narrowing and centralising its R&D, and exiting non-core business areas.
The company’s chair, Peter Ayliffe, said: “The feedback from third parties reaffirms that we have a uniquely strong technology platform, a talented and highly respected management team, and a deep well of support among staff, partners and clients for what we are seeking to achieve.”
Monitise also disclosed that founder and co-CEO Alastair Lukies had stepped down from the board, but remained available to the business and key partners as a strategic adviser.
Elizabeth Buse, who had shared the role with Lukies, has become Monitise’s sole CEO.
Strategic shareholders Telefonica and Santander will also have additional representation at board level going forward. Stephen Shurrock, head of the consumer division within Telefonica’s commercial and digital unit, has joined Monitise’s board as a non-executive director.
