Monitise PLC, a United Kingdom-based provider of mobile banking and payments services, on July 13 announced plans to raise £32.4 million (US$48.6 million or 38.7 million euros) through the sale of company shares and a subscription by Visa Inc. that will raise the card brand’s shareholding interest in the company to 14.4% from 12.6%.
Through the arrangement, Monitise will raise approximately £31 million after expenses at an issue price of 20.75 pence per ordinary Monitise share through a fully underwritten placing of £23.6 million and a subscription of 32 million shares valued at £6.6 million by Visa subsidiary Visa International Service Association and 10 million shares worth £2.1 million by First Eastern (Holdings) Ltd.
Besides its investment, Visa added a one-year extension to its five year global alliance agreement with Monitise to 2015 and increased its minimum fee agreement to US$16 million. Also, Elizabeth Buse, Visa international group executive, joins Monitise’s board of directors.
Monitise says it anticipates reporting revenues of £6 million for the fiscal year ended June 30, up 122% from £2.7 million in fiscal 2009. It expects revenues for the second half of 2010 to reach £4.3 million, up 169% from £1.6 million during the same period last year.
The company estimates transaction revenue for fiscal 2010 will reach £2.9 million, an increase of 480% from £0.5 million the previous fiscal year. For the second half of 2010, the company predicts transaction revenues to reach £2.1 million and to represent a growing portion of total revenues in the current and future fiscal years.
Monitise has operations in the UK and United States through its global alliance with Visa. The company says it also is seeking to expand into other areas, most recently signing into joint-venture agreements with local and international partners in the Asia Pacific and India regions, and it is in talks with certain African territories that could result in similar ventures later this year.
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