Monitise takes itself off the market as CEO steps down

Co-founder and CEO Alastair Lukies is leaving with immediate effect to act as an adviser

Former Morse spin-off Monitise is waving goodbye to its co-founder and CEO, as it looks to the future after a strategic review.

The firm, which had been up for sale, officially took itself off the market after concluding in its strategic review that the best way of "maximising long-term value" is to continue transforming and streamlining the business as an independent company.

The firm claimed it had received a number of expressions of interest.

According to some reports, the company’s share price dropped following the news of Lukies' departure, but Monitise revealed he will remain "available to the business and key partners" in the new role of founder and strategic adviser to fellow co-founder and new CEO Elizabeth Buse.

Monitise has been the only success story to emerge from Morse when it was spun off in 2010, after the latter went into administration following its ill-fated merger with 2e2 in 2013.

It also announced that Stephen Shurrock, CEO of consumer at Telefonica, has been appointed a non-exec director. Monitise, which has 200 million-plus users, also revealed it expects to see an EBITDA loss of between £40m and £50m for FY 2015 on turnover of £90m to £100m, but expects EBITDA profitability in FY 2016.

The firm said it would continue to focus on sales in Europe, the Middle East and North America, but will pursue additional market opportunities when the need arises.

It added that cost-optimisation projects had already been announced, including the transition of its UK professional services employees to IBM, which was initiated last August.

Speaking about all the changes, Monitise chairman Peter Ayliffe said: "Following a thorough and disciplined strategic review, the board has concluded that the best prospects for the business and shareholders are through remaining as an independent company. I am extremely confident that the business is at a point in its development where the prospects for delivering long-term value are excellent.

"The feedback from third parties reaffirms that we have a uniquely strong technology platform, a talented and highly respected management team, and a deep well of support among staff, partners and clients for what we are seeking to achieve."

He said Buse has already made a "significant impact" across the business and the board is delighted that she will be leading the company during its next phase of development. Ayliffe also praised Lukies for his contribution to the firm.

"On behalf of the board, I would like to thank Alastair Lukies as the founder of, and inspiration behind, Monitise. His vision, tireless hard work and energy have created a business that has delivered leadership in its space and given us the base from which we can build a long-term successful business. The board is very pleased that Alastair will continue to work with us in his new role as founder and strategic adviser."

Buse added in a statement: "Monitise is a great business with a unique offering. My priorities are centred on delivering value to all our stakeholders through the development and deployment of excellent products and services and to ensure that Monitise remains on track to become EBITDA profitable in FY 2016 and continues to be well positioned to deliver against its longer-term goals."