Visa to Undertake Assessment of Stake in Monitise
Longstanding partners in the mobile sector Visa Inc. (NYSE:V) and Monitise plc entered into an alliance agreement in 2009. At the same time, Visa began investing in Monitise. Given the maturation of Monitise as a company, Visa is considering its options with respect to the investment and has engaged J.P. Morgan Securities Plc to assist. Visa will also be lessening its dependence on external mobile development resources.
In 2009, in conjunction with its commercial partnership, Visa invested in Monitise as a 14.4% owner of the company in order to provide capital support to a leader in the evolution of the mobile payments sector. Over time, Visa’s holdings have been reduced to its current 5.5% stake in the company. This reduction in ownership and associated influence is consistent with Visa’s investment practice to seed emerging players and, over time, taper that influence as the partner company grows.
Under their agreement, Monitise will provide Visa with mobile platform development services through 2016. As both Visa and the payments industry evolve at a rapid pace, Visa intends to continue increasing its investment in its own in-house capabilities and, as a result, reducing its use of external resources.
“Visa has benefited substantially from our relationship with and financial investment in Monitise,” said Bill Sheedy, EVP of Corporate Strategy, Visa Inc. “Visa invested in Monitise as an early thought leader with a vision of making mobile banking mainstream and extending that functionality to mobile payments. Over the past 5 years, Monitise has successfully demonstrated its leadership in the sector underscored by the company’s marquee clients, multiple network partnerships and recent agreement with IBM. Consistent with Visa’s increased investment in our in-house capabilities, and the substantial growth in Monitise, Visa is considering its options with regard to its Monitise stake.”
About Visa Inc.
Visa Inc. (NYSE:V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks – VisaNet – that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.
J.P. Morgan Securities plc (“J.P. Morgan”), which is authorised by the Prudential Regulatory Authority and regulated by the Financial Conduct Authority and the Prudential Regulatory Authority, is acting exclusively as financial adviser to Visa Inc. (“Visa”) only and no one else in relation to the assessment by Visa of its stake in Monitise plc and will not regard any other person as a client in relation to such matter and will not be responsible to anyone other than Visa for providing the protections afforded to its clients or for providing advice in relation to such matter. This does not exclude any responsibilities which J.P. Morgan may have under the UK Financial Services and Markets Act 2000 or the regulatory regime established thereunder.
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