Fiserv agrees new £75m Monitise deal
Written by Chris Lemmon
British FinTech firm Monitise has accepted an improved takeover bid of £75 million from Fiserv, after a previous bid of £70 million was deemed as “too low” from shareholders.
The first bid was initially accepted by Monitise, but caused concern among shareholders, who threatened to withdraw their support from the acquisition.
The revise offer of 3.1 pence per share has now been approved by Monitise, which is a 35 per cent premium to the Monitise share price. Fiserv have said that the deal was final and would not be improved, unless a third party were to submit a bid.
The British mobile payments firm has been in crisis since being valued at over £1 billion in 2014. In 2015, the firm published an annual pre-tax loss of £227 million, more than three times its losses during the previous year. This resulted in CEO Elizabeth Buse jumping ship, while investors looked to sell Monitise after more than halving its stock market value in a single day of trading.
Following the new bid from Fiserv, the Monitise board said that they will need to consider “raising further capital, the divestment of businesses, and the overall strategy of the group” if the acquisition does not go through.