Brookfield-based Fiserv Inc. plans to acquire London-based Monitise plc for about $89.1 million.
The companies have reached an agreement on the terms of the cash offer, in which Fiserv would offer 2.90 pence per share. The transaction is still subject to Monitise shareholder approval, but is expected to close in the third quarter.
Like Fiserv, Monitise develops technology for the financial services industry. Monitise concentrates on accelerating the digital transformation of banks and credit unions through adaptation of legacy systems, greenfield projects and strategic digital projects.
Fiserv develops payment, processing, risk and compliance, customer and channel management and insights and optimization products for banks and credit unions. The Fortune 500 company had $5.5 billion in revenue in 2016 and has about 23,000 employees at 120 global offices. It is currently considering moving its headquarters.
By acquiring Monitise, Fiserv expects to broaden its technology offerings for financial institutions working to stay ahead of consumer expectations. Among the added solutions would be Monitise’s FINkit, a cloud native tool financial institutions can use to maximize innovation and speed-to-market.
“Monitise has been a global pioneer and innovator in digital banking for more than a decade,” said Jeffery Yabuki, president and chief executive officer of Fiserv. “Combining its talented associates and advanced technologies with leading digital solutions from Fiserv will expand our clients’ ability to provide differentiated experiences to their customers.”
”We are proud of the talented people and innovative technology solutions across the Monitise businesses,” said Lee Cameron, chief executive officer of Monitise. “Fiserv is well-positioned to carry this business forward given its strength in digital banking and extensive client network. Following the completion of this transaction, we are confident that Monitise clients will be served well by Fiserv and its longstanding commitment to creating value for its clients.”
