Monitise, a provider of mobile banking technology, has taken full ownership of Monilink, the UK-based mobile banking and payments network, by purchasing the joint venture partner VocaLink. Under the deal, Monitise will pay an initial GBP1.5 million in cash over three years for debt-free, 100% ownership of Monilink. The deal is expected to simplify and streamline Monitise’s group structure.
It has been reported that VocaLink will continue to provide Monilink with full access to its banking and payments infrastructure, in return for services fees. It could also earn up to GBP1.5 million in further consideration, subject to Monilink exceeding financial performance targets, between now and 30 June 2013.
Reportedly, through Monilink, Monitise supplies full mobile banking and payments services to banks representing over 55% of UK current account holders, including HSBC, Lloyds TSB, NatWest, RBS and Alliance & Leicester.
Duncan McIntyre, chairman of Monitise, said: The acquisition streamlines the overall Monitise group structure, and we look forward to continuing to provide world class services to our customers.
Martin Wilson, chief commercial officer of VocaLink, said: Having pioneered electronic payments, many of the world’s banks and their corporate customers rely on VocaLink to meet their transaction needs. Our commitment to mobile banking remains strong and we shall support Monitise’s growth with quality systems and infrastructure.
