3rd Feb 2014 09:18
LONDON (Alliance News) - Monitise PLC Monday said it has acquired Turkey-based Pozitron Yazilim AS in a share deal that values the privately-owned mobile technology company at up to GBP60 million.
In a statement, the mobile banking and payments company said Pozitron, which offers a range of mobile payment and banking products, will be acquired by the issuance of new Monitise shares to the tune of GBP24 million, based on Friday's closing price of 66.5 pence per share.
But that figure could increase to GBP60 million overall due to an additional earn-out of GBP36 million, which can at Monitise's discretion be paid in shares or cash, based on "aggressive" performance-related targets.
The initial share issuance will dilute Monitise's issued share capital by about 2%.
Pozitron, which counts Turkey's largest bank - Türkiye Is Bankasi - amongst its customers, was described by Monitise as a "European gateway to the Middle East" for its work with Arab National Bank, based in Riyadh, Saudi Arabia, and one of the largest 15 banks in the region.
Monitise said Pozitron is profitable and debt free, with a GBP2 million cash balance upon acquisition.
Monitise will publish its interim results for the six months to December 31, 2013, in just over two weeks on February 19.
On December 31, 2013, Monitise said it had seen continued trading momentum across the business, boosted by a number of contract renewals and new business wins in both Europe and the US.
At the time of that trading update, Monitise reiterated expectations for around a 50% rise in revenue, and a gross margin above 70% for the current financial year ending June 2014.
Monitise shares were Monday quoted at 68.12 pence, up 1.62, 2.4%.
By Samuel Agini; [email protected]; @samuelagini
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