AIM-listed financial services digital technology firm Monitise has agreed to be taken over by US technology group Fiserv for £70m.
Under the terms of the deal, each Monitise shareholder will receive 2.9p in cash per share, which is a 26.1% premium to the closing price of 2.30p on Monday. The company said its directors intend to unanimously recommend the deal, which will need approval from at least 75% of shareholders.
Montise said it "strongly believes" that its integration with Fiserv can accelerate the growth of the business, specially FINkit, through greater scale, investment, improved routes to market, further ability to leverage existing partnerships, sales teams and the combination of complementary product portfolios.
FINkit is a cloud native technology platform that empowers banks to execute innovative technology quickly.
Monitise chairman Peter Ayliffe said: "Following the simplification and stabilisation of the Monitise Group and the focus on the development and marketing of its next generation digital banking technology FINkit, the Monitise board has been regularly reviewing its medium to long-term options. In reaching its decision to recommend this offer, the Monitise board has considered in great detail the best interests of all stakeholders and the company as a whole.
"Recognising the growth challenges we continue to face, we believe that Fiserv's all-cash offer provides shareholders with certainty of value at a level in excess of the risk adjusted prospects of the Monitise Group on a standalone basis. In addition, Fiserv as a large and diversified international financial technology business, has the ability to accelerate the growth of the business through greater scale, investment, and routes to market."
Fiserv, meanwhile, believes Monitise's business will enhance its suite of technologies that enable financial institutions to meet rapidly evolving consumer expectations for financial services, give it increased access to clients in various geographic markets and expand relationships with mutual clients.
In addition, given the significant technological changes and opportunities that are expected in digital banking in the years to come, Fiserv believes that its financial and technology resources and extensive client network should enable Monitise to accelerate the development and distribution of key technologies.
At 1025 BST, the shares
- which peaked at 80p in 2014 - were up 23% to 2.83p.