British mobile banking platform Monitise has sealed a deal with credit card company Visa for a five-year strategic investment worth £8m.
The company said Visa would subscribe to a rights issue of 73.2 million shares to raise more than £5m, making it the company’s largest shareholder.
The announcement yesterday sent Monitise shares soaring almost 20% to 6.3 pence, outperforming what Reuters called a ‘flat London stock market’.
Monitise chief executive Alastair Lukies said it the deal was an exciting opportunity for the company. "Visa is the world's most trusted, inclusive and innovative payments network. This alliance validates our unwavering commitment to building truly accessible, inclusive and reliable services over the past seven years.
“It is a landmark announcement in the mobile payment space and we are excited to collaborate with the world's foremost payments company to accelerate the convergence of payments services and mobile devices,” he added.
Not many deals of this scale have been announced during the recession, but Monitise has been bucking the trend, seeing an 80% increase year-on-year in 2008/9.
Smarta interviewed Lukies a couple of weeks ago – see above for the result.