Monitise share price soars on takeover talks

on Feb 17, 2015

Shares in Monitise Plc (LON:MONI) have leaped in today’s session amid news that American technology companies are examining takeover bids for the mobile-banking software group which put itself up for sale last month. Monitise, however, today reported that its losses had widened during the first half of its financial year.

As of 14:02 GMT, Monitise’s share price had added 11.63 percent to 24p. The shares have lost nearly two thirds of their value over the past year.
Sky News reported last night that payment technologies group FIS was one of several potential suitors for the UK company. The newswire noted that Monitise executives were understood to have visited prospective buyers in the US last week with the UK group seeking additional capital to pursue expansion plans.Other possible bidders which are said to have expressed a tentative interest include Oracle and IBM.

Reuters today quoted Jefferies analyst Milan Radiaas saying that players from three different sub-sectors might be interested in Monitise –card network providers, software vendors and system integrators.
The bid talks come as the mobile-banking software group today updated investors on its first-half performance, reporting that its EBITDA loss had widened to £30.8 million in the six-month period ended December 31, 2014, from £10.2 million a year ago. Group revenue fell to £42.4 million during the reported period from £46.5 million last year.

Monitise chair Peter Ayliffe said in a statement that the announcement of the company’s strategic review had “led to many constructive discussions with market-leading players interested in our business and the role we play in the industry”.
The group reiterated its full-year outlook, forecasting revenue of between £90 million and £100 million, and an EBITDA loss of between £40 million and £50 million. Monitise expects to return to profit next year.

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