Mobile Banking Firm Monitise Now up for Sale
The company, based in the United Kingdom, confirmed that it has several interested buyers in a statement released last week.
Monitise is currently transitioning to a product-based recurring revenue model. This shift has caused license revenue to drop to $6.6 million, a 47% decline. The firm’s development and integration revenue is down 13%, valued at $33 million. According to the company’s forecasts for 2015, Monitise is expecting to see a loss of $60-76 million for the year, even though there are hopes for profits in 2016.
Monitise has recently faced a drop in its share prices and a round of unpleasant feedback from shareholders, which is forcing the owners to take a look at their options. The firm appointed Moelis & Company as its advisor and is now assessing the possibility for a merger or complete takeover from potential suitors.
“The Board believes that the company has an exciting future as an independent business, however it recognizes that there may be other businesses which could leverage Monitise’s capabilities for digital commerce enablement to significantly accelerate the growth of the business and take maximum advantage of the growth opportunities in the market today,” the company said.