Of Special Interest
27th March 2012
Monitise buys Clairmail
Monitise has agreed to buy Clairmail subject to regulatory approval. The all paper deal values Clairmail at $173.2m (€130.5m £109.0m $173.2m ¥14,325m Y1,092m). The purchase will involve increasing the equity base within Monitise by around 26.5%. In an indication that they think the deal may be scrutinised carefully by the authorities the timeline for completion was 'by end of year'.
The deal is estimated to be accretive by the end of the calendar year 2013. One of the reason's for Monitise's interest is the direct sales capability of Clairmail.
The bold move will give Monitise a stronger base in the US as well as the potential for various synergies from the combined technology of the two groups. Monitise recognises in the press release the importance of the US - "expected to be the world’s largest mobile banking and payments market". The company has a strategic partnership with FIS involving FIS holding a small stake in Monitise. It also has partnering agreements with both Visa Inc. and Visa Europe.