Clairmail is growing rapidly with revenues in 2011 up by 90% year on year. The Acquisition consideration will be satisfied entirely by the issue of up to 312,787,144 new Ordinary Shares representing approximately 26.5% of the fully diluted share capital of the enlarged Company, post completion, and values Clairmail at approximately US$173 m (£109m), based on Monitise’s share price of 35.0 p as of the close of trading on March 23, 2012. The deal is conditional upon US regulatory and shareholder approvals. It is expected that the Acquisition will be completed before the end of the financial year 2012.
The acquisition enhances Monitise’s position as the leader in mobile money globally, creating a pure-play mobile money company of unprecedented scale in the US, which is expected to be the world’s largest mobile banking and payments market. It also provides Monitise with unique bank-grade technology capabilities, network partnerships and R&D expertise.
Currently, the combined businesses provide mobile money services to 13m registered end consumers via some of the world’s leading financial institutions such as the Royal Bank of Scotland Group, two of the largest card issuers in the US, Lloyds TSB, PNC Bank, U.S. Bank and Fifth Third Bank among others.
Together the combined technology platforms process billions of transactions a year and over US$10bn of payments and transfers on a current weekly annualised basis.
In North America, the combined businesses following the completion of the Acquisition, will provide mobile money services to the widest possible range of financial institutions. A third of the top 50 North American financial institutions (including 8 of the top 13) have chosen our services as well as 100s of smaller and medium sized financial institutions. The Acquisition provides a step change in growth potential for the Company through direct sales in North America. This, combined with Monitise’s existing and unmatched Visa Inc. and FIS strategic partnerships, provides the Enlarged Group with a leading position in the US and three commanding routes to market.