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IBM) and Monitise plc (LSE: MONI.L) (“Monitise”, the “Company” or “Group”) today announced a global digital commerce and resourcing alliance.
Combining the best of both companies’ mobile banking, payments and commerce technology, this alliance brings IBM sales and specialist resources to clients around the world with the full spectrum of advice, solution design and delivery of Monitise’s Mobile Money services. Building on Monitise’s IBM
Global Alliance announcement in July that included the IBM MobileFirst portfolio of offerings. Monitise’s technology will be enabled, hosted and sold as an IBM cloud-delivered solution worldwide in the business-to-business space. This in turn underpins Monitise’s go-to-market strategic priorities as announced in March 2014, including its target for 200 million users using Mobile Money products and services developed by Monitise by 2018.
As part of the collaboration, IBM’s global go-to-market investment of dedicated resources and promotional initiatives, globally and in region, will pair with Monitise staff to pursue Mobile Money opportunities. While commercial opportunities initially will be targeted at financial institutions, the companies will also address the needs of mobile network operators, retailers and any vertical requiring simple API connectivity to bank-grade, interoperable and scalable mobile payment and commerce functionality and content.
As part of today’s agreement, teams from Monitise’s UK development and integration business known as Professional Services -- including a number of contractors -- will be transferred into IBM; IBM will in turn deliver services back to Monitise. The transfer, which involves UK employees representing a little over 20 percent of Monitise’s global employee base, means Monitise technology talent will now be available for both Monitise and IBM customer projects and vice versa. All Monitise contracts and client relationships, intellectual property, commitments and delivery remain unchanged.
The collaboration will substantially increase Monitise’s ability to handle larger custom projects globally, in addition to implementing standardised solutions. Equally, the resources will enhance IBM’s ability to deliver existing and future Monitise-based Mobile Money solutions to customers. Efficiencies derived from the collaboration support Monitise’s target, as reiterated in its trading update in July 2014, to be profitable in FY 2016 and achieve an EBITDA margin of at least 30 percent by end of FY 2018.