Monitise takes full control of Monilink

Joint venture with Vocalink is now wholly owned after a £1.5m buyout deal

Monitise has acquired full ownership of mobile banking and payment network Monilink.

The Morse spin-off initially owned 50 per cent 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 per cent 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.

Duncan McIntyre, chairman of Monitise, said: “This deal, alongside our recently announced global alliance with Visa International, represents excellent news for Monitise.

“It gives us full ownership and control of a rapidly growing business in an exciting market.”

Alastair Lukies, chief executive of Monitise, added: “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.”

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."