Brookfield-based Fiserv Inc. has increased its bid to purchase London-based Monitise plc to about $98 million.
In June, the financial services technology developer had offered about $89.1 million cash for Monitise. But today, the boards of both companies agreed to an increased and final cash offer of 3.1 pence per share, a 34.8 percent premium on the June 12 closing price for Monitise.
The offer was increased in response to Monitise shareholder feedback.
While it agreed to the new terms, the Fiserv board pointed out that Monitise’s revenue is expected to decline in 2018; Monitise would have needed to raise capital, divest businesses or change its strategy if Fiserv were not making the acquisition; changes in U.K. tax law could restrict the use of tax losses against taxable profits; and there have been no third party bidders to acquire Monitise since June 13.
On July 27, Monitise reported its revenue for the fiscal year ended June 30 fell to $66.3 million, down from $88.1 million in 2016.
Fiserv last week reported its second quarter profit was $221 million, up from $212 million in the second quarter of 2016. Its revenue was flat at $1.4 billion.
The Fortune 500 firm is currently seeking a new headquarters and last week confirmed it has narrowed its Wisconsin options to three sites. A proposal in the Legislature would provide up to $12.5 million in incentives to Fiserv if it builds the new headquarters in Wisconsin and keeps at least 93 percent of its full-time employees here.
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.
