Monitise pays initial £1.5m to secure full ownership and control of Monilink

The Morse spin-off initially owned 50 % of the business, but has agreed to pay its former partner VocaLink an initial £1.5m in cash over three years to secure the other 50 % of the business. Under the terms of the agreement, VocaLink will continue to provide Monilink with full access to its banking and payments infrastructure in return for services fees. It could also pocket a further £1.5m if Monilink exceeds its financial performance targets between now and 30 June 2013.

“This deal, alongside our recently announced global alliance with Visa International, represents excellent news for Monitise,” chairman of Monitise Duncan McIntyre said. “It gives us full ownership and control of a rapidly growing business in an exciting market.”

“Our partnership with VocaLink has established Monitise’s patented technology as the platform of choice for some of the world’s largest and most successful companies. We look forward to continuing our excellent relationship with VocaLink and to further establishing the UK at the forefront of the mobile money industry,” Alastair Lukies, chief executive of Monitise, added.

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 will support Monitise’s growth with quality systems and infrastructure."