New Visa Europe Contract
Monitise and Visa Europe (VE) have worked together since February 2011 and the new agreement announced today will extend this relationship and provide minimum revenues of €45m over the next three years. Depending on the rate of end-user adoption of m-payment and m-commerce services, there is upside potential to these revenues. As part of the agreement, Monitise is issuing warrants over 49m shares (3.2% of outstanding shares) to VE.
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Monitise and VE have signed heads of terms for a new three-year contract, covering licence rights to all aspects of Monitise’s mobile technology. The contract will be worth a minimum of €45m/£38.8m over three years and there is the potential for upside if certain user-generated thresholds are reached. Monitise and VE originally started working together in February 2011, with the Person-to-Person and Visa Alerts services launched in September 2011. In our view, the deal underpins our forecasts and demonstrates a strengthening of the relationship. There is upside potential later in the life of the contract, but this will depend on VE’s member bank customers using its primarily m-payment and m-commerce services.
As part of the contract, Monitise will issue warrants to VE: 43m at 36.25p per share, exercisable from the date the contract is signed until 4 August 2014, and a further 6m at 1p per share. If VE exercises all warrants, this would increase its stake from 7.5% to 10.3%, returning it to a similar stake to the one it had before the December fund- raising, and generating proceeds of £15.65m.
To Read the Entire Report Please Click on the pdf File Below.
Monitise and Visa Europe (VE) have worked together since February 2011 and the new agreement announced today will extend this relationship and provide minimum revenues of €45m over the next three years. Depending on the rate of end-user adoption of m-payment and m-commerce services, there is upside potential to these revenues. As part of the agreement, Monitise is issuing warrants over 49m shares (3.2% of outstanding shares) to VE.
[[graph_1]]
Monitise and VE have signed heads of terms for a new three-year contract, covering licence rights to all aspects of Monitise’s mobile technology. The contract will be worth a minimum of €45m/£38.8m over three years and there is the potential for upside if certain user-generated thresholds are reached. Monitise and VE originally started working together in February 2011, with the Person-to-Person and Visa Alerts services launched in September 2011. In our view, the deal underpins our forecasts and demonstrates a strengthening of the relationship. There is upside potential later in the life of the contract, but this will depend on VE’s member bank customers using its primarily m-payment and m-commerce services.
As part of the contract, Monitise will issue warrants to VE: 43m at 36.25p per share, exercisable from the date the contract is signed until 4 August 2014, and a further 6m at 1p per share. If VE exercises all warrants, this would increase its stake from 7.5% to 10.3%, returning it to a similar stake to the one it had before the December fund- raising, and generating proceeds of £15.65m.
To Read the Entire Report Please Click on the pdf File Below.