Monitise share price soars 23 per cent after US fintech expert Fiserv announces £70m deal to buy the London-based business

Shruti Tripathi Chopra
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London fintech firm Monitise was valued at over £2bn in 2014 (Source: Getty)

Monitise's shares soared over 23 per cent this morning after US finance giant Fiserv snapped up the London-based fintech firm in a £70m deal.

The selling price is significantly lower than Monitise's £2bn valuation in early 2014.

The offer of 2.9p in cash per Monitise share represents a premium of 26 per cent to yesterday's closing price of 2.3p.​ The acquisition is expected to be completed in the third quarter of the year.

​Founded in 2003, Monitise has struggled amid competition from tech giants such as Apple who entered the mobile payments space.

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Lee Cameron, chief executive officer, Monitise, said: "Fiserv is well-positioned to carry this business forward given its strength in digital banking and extensive client network. Following the completion of this transaction, we are confident that Monitise clients will be served well by Fiserv and its long-standing commitment to creating value for its clients."

The Aim-listed firm put itself on sale in 2015 following profit warnings. However, it was unable to find a buyer.

In its interim results released in February, Monitise revealed a loss before tax of £7.5m for the six months to the end of December, a 96 per cent improvement on the £210.5m loss it announced for the same period the year before. However, revenues also slipped to £28.2m, down 15.6 per cent from £33.4m the year before.

At the time of writing, Monitise's shares were 23.2 per cent at 2.82p

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