Monitise signs 8m deal with Visa International
SHARES in mobile banking and payments service provider Monitise lifted by 28 per cent to 6.75p yesterday, after it said that it had signed a five-year strategic agreement with Visa International worth $13m (£7.9m).
Monitise said Visa International, the world’s largest retail electronic payments network, would also subscribe to a rights issue of 73.2m new shares to raise £5.1m and give it 14.4 per cent of the company.
“Today’s announcement provides a major boost to Monitise’s short-term revenue visibility and long-term strategic position,” house broker Investec said in a note.
Visa will pay Monitise to help it develop technology to provide SMS alerts and secure payment mechanisms for holders of Visa’s cards worldwide. Shareholders UBS Global Asset Management and Capital Group will also participate in the capital hike, keeping their stakes at 12.9 per cent and 5.8 per cent respectively.